How does Jointer recover the price slippage after trades?
Jointer financially engineered the Reserves to provide a perfect price slippage recovery for investors which goes beyond the simple slippage model. Utilizing the Side Reserve to consistently recover the Main Reserve after a redemption of JNTR provides price slippage recovery for the next investor wanting to redeem JNTR.
Example
The Main Reserve executes a redemption request reducing the digital currency in pool A while adding JNTR to pool B, which traditionally increases the slippage for the next investor
After the trade is executed, the Side Reserve withdrawals the same amount of JNTR from pool B to the Side Reserve
The Side Reserve withdrawal brings the face value to the original position before the redemption and decreases the slippage back to the initial value before the redemption
Therefore, the next investor is not damaged by the investor redeeming JNTR first as they both receive the same slippage calculation
N.B. JNTR’s face value recovery takes place between displays to avoid quick trading investors or API players who may abuse the temporary face value change. This means, the volatility due to redemption is recovered by the Side reserve in a way that is transparent to the public.
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