Raids are the primary redistribution mechanism in Bandits.Fun. At randomized intervals within each six-hour window, the protocol seizes 10% of all staked USDT (excluding buffers). The seized USDT is executed into $GOLD through a 15-minute TWAP. Redistribution occurs only after the TWAP has completed, at which point 100% of the acquired $GOLD is distributed to holders. Redistribution increases each holder’s $GOLD balance, which in turn raises their required USDT collateral, fixed at 10% of USD value. Holders who fail to maintain this collateral threshold are liquidated (if at any point in time, the 10% value is not met). This ensures that raids continuously enforce collateralization while driving recurring buy pressure into $GOLD.

Raids: Step-by-Step Process

1. Raid Scheduling and Snapshot

1. Raids occur in 6-hour intervals (0–6h, 6–12h, 12–18h, 18–24h).

2. The exact raid time is randomized within each interval. For example, a raid may strike at 2h30, then the next at 8h41.

3. At the raid start, the protocol takes a snapshot of all holders, including those in the exit queue.

4. For a short period of time all unstaking will be frozen to carry out calculation of the snapshot

5. The protocol seizes 10% of staked margin USDT and aggregates it for buyback.

2. Buyback Execution (TWAP)

1. All seized USDT is used to buy $GOLD (with the exception of a 10% protocol fee).
2. The buyback is executed via a 15-minute TWAP to smooth price impact.
3. Once the TWAP completes, the final amount of $GOLD acquired is recorded for redistribution.

3. Redistribution of $GOLD

1. 100% of the purchased $GOLD is redistributed to holders.
2. Redistribution follows a proportionally weighted allocation:
3. After redistribution, all balances are updated, and collateral requirements are recalculated. The USD value of a bandit's $GOLD holdings must be covered by 10% USDT collateral.
4. Bandits who no longer meet the collateral threshold are liquidated immediately, with their assets redistributed according to protocol rules.