Without adding too much moving parts.
Whenever someone sends a transaction using the token , 2% of that transaction is sent to the contract. The stored tokens accumulate until they reach a threshold.
Once this threshold is reached, half of the store asset is sold for the favorite B asset. The A and B are then used to create a LP token.
**The LP token is then stored inside the contract, where it is secure and can never be transferred
Over time, the liquidity stored inside the contract grows more prominent, creating a price-floor for Token A . Since this step is a high-gas transaction, whoever initiates this transaction is automatically rewarded with % of token A .
The Passive Yield-Generation Mechanism Work
In addition to a 2% fee that goes towards building liquidity, token A also has a 1% transaction fee distributed to all holders.
These tokens are transferred instantly, so there is no need for staking in a vault or pool, which can sometimes be risky and costly.
The amount of tokens you get as rewards depends on your share of holdings ( the more you hold, the more tips you get).
The Buy Back Function
The feature can be called once an hour by anyone holding at least 1,000 $ OR MORE tokens.
When the feATURE is called…
- The protocol automatically removes 2% of the liquidity locked inside the contract, which is broken down into TOKEN B and TOKEN A
- The TOKEN B is then used to market-buy
- 95% of the TOKEN A is burn
- 5% of the remaining TOKEN A is sent to the function caller as rewards since it’s a high-gas function
- The bought is locked inside the contract forever (effectively burned)
The feature’s goal is to create buy pressure on the pair to support the Ecosystem.
The Liquidity Treasury Work to reward LP Providers
The Liquidity Treasury is a contract created at token deployment that holds (5% of the starting supply). These tokens collect passive yields (interest) just like any other wallet.
These interest tokens are automatically sent to the liquidity pool as an extra incentive for liquidity providers.
This means there are many incentives to provide liquidity to the liquidity pool:
- Passive yields from holding
- Liquidity treasury rewards (Hold token A /B LP and earn more token A)
- Standard Dex 0.2% fees