(Trading Fees * Global Mint Rate % * Local Mint Rate %) / UP Redeem Rate = UP Minted
UP Minted * (100% * Super Pair %) = Effective Mint Rate
The current global mint rate is 95%. The local mint rate is 100%.
Currently, the respective opposite values of 5% and 0% are used to increase the redeem value of UP. In other words, these values are sent to the UP Smart Contract as native currency, therefore increasing the amount of native currency backing each UP Token. Following that, UP in minted using the BNB trading fees to be claimable by Super Pairs as well as the Liquidity Providers.
As an example of this in practice, let's say 10 BNB is spent in trading fees on a pair with a 10% Super Pair allocation.
10 BNB Trading Fees * 95% Global Mint Rate = 9.5 BNB
First, 95%, or 9.5 BNB will be used to mint UP at the global mint rate. 0.5 BNB will be used to increase the UP Redeem Value by being sent to UPbnb smart contract.
9.5 BNB / 10 BNB UP Redeem Value = 0.95 UP
Then 9.5 BNB will be used to mint UP at the current UP redeem value.
Let's say the current redeem value is 10 BNB. Therefore 9.5 BNB will mint 0.95 UP.
0.95 UP - 10% Super Pair Rewards = 0.82935 LP Rewards
Of the UP Minted, the Super Pair will receive 10% of the minted UP, or 0.095 UP. The liquidity provider would therefore receive 0.855 UP,. Therefore, the effective mint rate is 85.5%.