Auto-Liquidity System
The ability to buy and sell $XXXX tokens on MMF is dependent on market liquidity.
Liquidity is a big pool of money split 50/50 between $XXXX and $CRO tokens. A conversion ratio determines the amount of $XXXX you can acquire with Cronos.
The price per $XXXX climbs when someone buys $XXXX, and the ratio above adjusts to account for this. The same can be said for sales in the other direction. Liquidity allows anyone to buy and sell their XXXX/Cro at any time; but, the lower the price, the less money/liquidity in the pool; consequently, our Auto-Liquidity System automatically supplies extra liquidity to that pool, eliminating that issue.
Every 48 hours, our Auto-Liquidity System injects automated liquidity into the market. Each purchase or sell order incurs a 4% tax fee, which is automatically saved in an Auto-LP wallet. Built into our protocol's smart contract is a system that intelligently takes the 50% of $XXXX saved in the wallet and buys $CRO at the current market price.
The remaining 50% of $XXXX in the Auto-LP wallet will be used for XXXX/CRO liquidity, resulting in a 50/50 weighting of XXXX/CRO that will be automatically delivered to the market pair as new, additional liquidity, enhancing the pool's liquidity. As more liquidity is introduced to the pool, this will happen every 48 hours, allowing $XXXX token holders to sell their tokens at any time with little to no market slippage. It will also aid protocol stability by guaranteeing that the APY is preserved.
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