Example B: Suppose the algorithmic stablecoin is XSD (XSD = ESD/BAC/VSD), Uniswap pool XSD/USDC has 100M XSD / 103M USDC with XSD price = $1.03, and collateral ratio (cr) is 90%. In Frax, an arbitrageur is able to mint 1.488M FRAX, sell to the pool, get 1.51108M USDC, and enjoy the profit 1.51108M - 1.488M = 0.023M. To mint FRAX, the arbitrageur needs to buy (1 - cr) * 1.488M = $0.1488M worth of FXS. By contract, after performing auto-sell and partial collateralization, VSD will have $0.19M VSD as expansion reward, which can be used to buy and burn the share token (VSS) from market or distribute the reward to LPs. This means that in this scenario, VSD can create $0.19M buying power of the share token compared to $0.1488M of Frax.