# Treasury Contract

The treasury contract plays a vital role in the ORIGIN protocol, acting like a well-designed vault that safely holds all funds collected. For example, when users purchase USDT bonds, these USDTs are fully transferred to the treasury contract reserve as a source of funds in exchange for newly minted LGNS tokens. These new LGNS are minted based on risk-free assets (RFV) in the Treasury, ensuring each LGNS has solid value backing.

The total amount of treasury assets is the total value of various assets entering the Treasury through bond sales, including USDT, LGNS-USDT LP, etc. The total risk-free assets of the Treasury are the value of risk-free assets accumulated based on bond sales. Here, the value of USDT bonds is equal to their risk-free value, while the total value of LP bonds is higher than their risk-free value. It means that although the total assets of the Treasury may change due to fluctuations in the Price of LGNS, the total risk-free assets of the Treasury always show a unilateral upward trend.

According to the ORIGIN strategy, every LGNS minted is backed by at least US$1 of treasury risk-free assets. As the risk-free assets in the Treasury continue to grow, more LGNS will be minted, providing more excellent stability and credibility to the protocol. It not only strengthens the value of LGNS as a cryptocurrency but also provides our investors with greater security and confidence. It further enhances the stability and credibility of our protocol.
