Mint curve

The shape

below T:  rate = 100
above T:  rate = 100 × (S / (S + H))²
T = $2,000,000, S = $120,000,000, H = cumulative basis minted above T (never falls)

What moves tracked gain

Toro’s default is a net-PnL high-watermark: tracked gain is the running total of losses credited minus wins paid or queued, and it only ratchets up. Each band of pool gain therefore mints once, and a hedged pair of trades cannot mint more than the net loss it really paid.

A parity switch (recoveryMinting, off by default) restores the target’s rule, where tracked gain follows the pool both ways and a recovery from below the threshold mints at the flat rate again.

What counts as loss

The mint basis is the rise in tracked gain the loss causes. Sweeps to stakers and fee payments never reduce tracked gain, so they never reopen a band for minting.