> For the complete documentation index, see [llms.txt](https://droplits-organization.gitbook.io/droplit-ecosystem/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://droplits-organization.gitbook.io/droplit-ecosystem/expansion.md).

# Expansion

At the beginning of every epoch, if the time weighted average price (TWAP) of LIT is greater than 1.01, new LIT will be minted in the Water Bucket.

The amount of new Lit distributed depends on the current circulating supply of LIT. 

The rate may be adjusted to reduce or increase expansion based on peg performance, the actual current rate can be viewed on the treasury contract here: Soon.