Liquidity Provision

Liquidity Provider (LP) Arrangement:

It is essential to clarify that within the Based Rate ecosystem, LP tokens are not subject to burning. Instead, they are strategically managed within a dedicated contract. This arrangement enables us to harness the power of LP tokens in a manner that positively impacts and supports the ecosystem.

Key Points:

  1. LP Tokens Preservation: LP tokens are not burned or destroyed. They are retained and carefully managed within a specialized contract.

  2. Swap Fee Earnings: This contract is designed to actively earn swap fees by providing liquidity on Aerodrome, a decentralized exchange platform. These earned fees are essential revenue sources for the ecosystem.

  3. Ecosystem Support: The swap fees garnered from LP tokens' participation in providing liquidity directly contribute to the growth, sustainability, and overall health of the Based Rate ecosystem. These funds are strategically allocated to various initiatives and developments, ensuring the project's success.

In summary, the LP tokens are preserved and play a crucial role in the generation of swap fees, which are then reinvested to support and strengthen the Based Rate ecosystem. This approach fosters a dynamic and self-sustaining ecosystem that benefits all participants

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