Frequently Asked Questions

How Stock is Minted

Stock minting in NewellServ involves creating new shares directly from the mint. The mint sets the price for each new share based on the total amount of money spent in the mint. The price of each share increases by $0.01 for every $10 spent. This incremental pricing ensures that as more shares are minted, the cost per share gradually increases, reflecting the growing value of the stock.

How the Pool Works

The liquidity pool in NewellServ allows users to buy and sell shares at a market-driven price. The pool's price is determined using the formula X * Y = K, where X represents the total funds in the pool, Y represents the total shares in the pool, and K is a constant value. As shares are bought or sold, the price adjusts dynamically to maintain this equilibrium.

Game Theory: Minting vs. Buying from the Pool

Deciding whether to mint new shares or buy from the pool involves strategic consideration. If the mint price is lower than the pool price, it might be advantageous to mint new shares. However, as more shares are minted, the mint price increases, potentially making the pool a cheaper option. Conversely, buying from the pool can impact the share price, especially if the pool has a significant amount of funds or shares. Balancing these factors requires careful analysis to maximize investment returns.