# Sales Contract

According to the treasury contract, each NVB minted is anchored to 1 USDT. When 1 NVB > 1 USDT, the protocol mints and sells additional NVB. When 1 NVB < 1 USDT, the protocol buys back NVB. This anchoring is achieved through inflationary or deflationary modes. Regardless of whether the NVB price is above or below 1 USDT, the NovaBank protocol can profit.

The NVB minting and buyback formulas are as follows:

$$
Minting: epochMint = (TWAP – IV) \* supply*ICV*Discount\`
$$

$$
Buyback: epochBurn = (TWAP – IV) *supply*DCV\*Discount\`
$$

{% hint style="info" %}
*TWAP: Time-Weighted Average Price;IV: NVB Backing Price;SUPPLY: Increment of treasury risk-free funds;ICV: Inflation Coefficient;*\
\
*DCV: Deflation Coefficient;Discount: Discount (The increase in treasury risk-free funds relies on bond sales, which have* discounts detailed in the Bond Contract section)
{% endhint %}

When 1 NVB > 1 USDT or 1 NVB < 1 USDT, the NovaBank sales contract becomes effective, and the protocol will mint or buy back NVB. Users can purchase or sell NVB directly from the protocol.

The NovaBank protocol checks if the latest epoch has ended (each epoch lasts approximately 7.5 hours). If it has ended, the protocol sends a transaction request (minting or buyback) to the NovaBank treasury based on the TWAP price of NVB.

If the protocol doesn't have enough NVB or USDT to fulfill the user's transaction, the remaining transaction will be completed through the NVB DEX pool.


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