Refilling Buffer

The process of refilling the buffer involves replenishing the portion of USDC held in reserve within the Treasury. This ensures that the buffer remains adequately funded to fulfill its intended role of safeguarding the protocol against liquidity shocks.

By default, all deposits of USDC are allocated to the buffer. When the protocol is above a defined value (default of 21%) above the buffer amount for a week, then the USDC of the buffer above another value (default 20.5%) is allocated to vaults via a dutch auction.