The Mint Master is singularly concerned with one action: computing a Minting Ratio for a given oneToken. It computes the Minting Ratio using internally-defined logic based on observable on-chain data within or without the ICHI system.
The ratio of Collateral to project tokens required to mint a oneToken. For example, oneBTC at a 91% minting ratio would be minted with 91% USDC and 9% wBTC. The computation of the Minting Ratio is handled by external modules that are admitted by ICHI Governance and adopted into oneToken Vaults by their respective oneToken Governance.
Every oneToken has a Minimum Minting Ratio which is the minimum percentage of stablecoin that needs to be used to mint new oneTokens. oneToken holders can vote to adjust the Minimum Minting Ratio using the voting power calculated by the oneToken Governance contract.
Similar to other components of the oneToken system, Mint Masters are modular and enable minting logic to be customized for each oneToken community's needs. the Incremental Mint Master is an example of a simple Mint Master that can be implemented for a oneToken instance.
The Incremental Mint Master implements a Minting Step Change which controls the amount a minting ratio can change. A change to the minting ratio happens everytime: (1) Someone mints a oneToken, (2) someone redeems a oneToken. Whether the price moves up or down depends on whether the oneToken price is slightly below/above $1. In this instance of a Mint Master:
Lowering the Minting Ratio decreases the portion of value to mint that must be supplied by the user in the form of Collateral tokens, and increases the acceptable amount of the value to mint that can be supplied in the form of the Project Token - risk on.
Increasing the Minting Ratio increases the portion of value to mint that must be supplied by the user in the form of Collateral tokens, and decreases the acceptable amount of the value to mint that can be supplied in the form of the Project Token - risk off.
Reminder: This is one possible instance of a Mint Master. The modularity of oneToken Architecture accommodates flexible design. Every oneToken has a Mint Master which can be shared with other oneToken instances.