The ETH/WBTC/YFI V1 market anToken is set to be redeemable at an initial discount of 55% when the debt repayment contract has a reserve ratio of 0%. The zero discount reserve threshold is 15%. As the Treasury Working Group dollar-cost average buys the bad debt assets, a proportion of these buys are sent to the debt repayment contract which causes the stores of YFI, Eth and wBTC in the contract to slowly fill, raising the reserve ratio for each asset. At 5% reserves, a user can redeem their Eth debt at a 36.6% discount. At 10% reserves, the discount falls to 18.3%. At 15% reserves or more, the discount will be at 0%. Reserve ratios are calculated separately for each debt asset. If there is 75 ETH stored in the debt repayment contract, and there is 1,000 ETH currently stuck in the ETH V1 market on Frontier then the reserve ratio will be 7.5%, meaning currently the available discount is 27.5%. If a user with 34.5 ETH stuck in V1 markets decides to withdraw all of their ETH in this moment, they’ll receive 25 ETH from the debt contract (27.5% discount). This reduces the debt contract’s ETH balance to 50 ETH, and the reserve ratio to 5%, meaning that the next available discount to a user will be 36.6%. At this point, the 34.5 ETH of anETH is sent to the TWG. The TWG can then use currently stored ETH in the Treasury to repay this full 34.5 ETH from the bad debt, meaning the new total of ETH in V1 markets becomes 965.5 ETH (1,000 - 34.5). The TWG will direct a proportion of ETH/WBTC/YFI assets for repayment to this contract. This proportion will be determined each time based on the current context of the repayment situation. The rest of the ETH/WBTC/YFI will be used for liquidations and adding liquidity to the V1 markets like before.