Within 24 hours after the 8-day supply expansion period ends, 80% of all treasury funds besides SCAT-DAI LP will be used to conduct a massive series of randomly timed and sized buybacks!
Shortly after the 8-day supply expansion period ends, the SendHouseCut() function calculates the amounts in all treasury bonds besides SCAT-DAI
20% is sent to the contract operators, part of which will be donated to charitable causes
The remaining 80% is earmarked for buybacks within 24 hours of the end of minting
The LiquidateTreasury() function is then called multiple times within 24 hours to conduct randomly timed and sized buybacks
This admin-only function accepts an integer (buybackPercentage, 100=1%) as input
buybackPercentage % of the remaining buyback funds are liquidated from all treasury bonds (except SCAT-DAI LP) to DAI
The DAI is used to purchase SCAT from the SCAT-DAI LP, and the purchased MP is burned
The finalizeLiquidation() function becomes publicly callable at the end of the 24-hour buyback period
Calls SendHouseCut() if it has not been called already
Executes LiquidateTreasury(10000), which performs all remaining buybacks from the 80% of non-LP treasury funds earmarked for buyback
This ensures that all designated funds are used for buyback even if the admins fail to call the other functions
In Snowdog DAO, buybacks were made on a new LP system that required a passphrase to trade. In contrast, this procedure ensures that buybacks are made on the same SCAT-DAI LP pair that is used all throughout the protocol.