A question that turned out to be an idea about Cryptocurrencies
Due to cryptocurrencies’ constant growth, a growing reputation and all the collaborations with smart contracts that launched, the buying and selling of cryptocurrencies has made liquidity of some of them a challenge.
One specific question that remains is how to make users maintain these liquidity funds?
Recognizing this challenge, various developers tried to create a tokenomic structure that would meet this need and all the requirements for users to supply liquidity to groups.
Thus, this structure would become a source of liquidity and an alternative to that old “farming reward” methodology.
With this new skeleton, it seeks to offer users the option to receive rewards through reflection.
These users would become distributors of tokens proportional to the total volume in order to receive a more than reasonable commission for it, thus creating a trend for more users to join.
Although this new methodology can provide the stability that many seek in a cryptocurrency, the burning of tokens goes hand in hand with the process in general to avoid their depreciation.
All these are the factors that LibraProtocol seeks to achieve — avoiding getting rid of those flaws that many digital currencies have had and simultaneously remaning an attractive offer for the market.
Automated Liquidity with the Libracol token
Although in the commercial field liquidity is a very fundamental part of any business model, over time the creators of cryptocurrencies and the entire market around them used it to provide a service that reduces market volatility and quickens token buying and selling, which can be done through smart contract controls and traditional order books based on a decentralized exchange.
Even so, this technology of traditional order books is a thing of the past.
They are being replaced by decentralized liquidity pools that fairly reward users who lend their order books, which provides solidity to said methodology.
The solution to the only drawback of decentralized liquidity takes the functions of smart contracts, capturing a part of the activity of exchanges and transfers made in the market by the function: “_swapAndLiquify”.
Using part of the 5% fee of the transactions to maintain within the contract and automatically convert part of the liquidity, thus reaching 20,000 million tokens.
Static Reflection Reward
Unlike traditional mining that involves many difficulties and expensive investment for users, the general static reflection rewards in a simple way with just accumulating tokens.
It’s an alternative to the classic way of mining and introduces a new group farming reward structure.
This seeks to eliminate the collection of funds in third-party smart contracts that do not have verification, the interfaces of external websites with their fees.
To supplement it with the model we propose that uses a compound reward model with no extra fee based on the smart contract is known as token mirroring.
This must be without disturbing the state of the user’s portfolio.
Taking into account the static reflection rate established at 5%, a portfolio is only affected by the number of tokens that the market activity manages and those that the user owns in relation to the general supply.
The function “_excludeFromReward” reflected for individual addresses, accounts such exchanges, hot wallets, dapps, among others that can be excluded from the reflection of the token.
In this way, individual holders can be rewarded more.
The token burn
LibraProtocol plans to join forces with a small number of other digital currency projects that all have a token burn program.
The goal is to gradually withdraw a predetermined amount from the total supply.
Following the principle of conventional share buyback programs that companies use, the plan is to buy their own shares to decrease supply in the market, thus increasing their value.
The team behind this project will follow and execute a manual policy for the burning of democratic ideology tokens.
That is, the community will be able to have a strong influence on when the burns should be executed.
To ensure fairness and transparency, a vote will take place among the token holders.
What Blockchain is the Libraprotocol project based on?
Our project has a BEP-20 token that was launched in the Binance Smart Chain (BSC) financial ecosystem alongside a contract with LibraProtocol, which was verified on November 17, 2021.
This makes us part of the proof of authority of the consensus mechanism, thus naming the creators of the block as validators, which were previously approved and chosen at the discretion of Binance and then centralizing the chain of blocks.
If you want to be part of this project and learn more about the technical aspects, you are invited to visit our website and contact us directly.
The Libraprotocol Team.
Written by Dionel Alvarado (Spanish Copywriter)
Translated by Grace D (English Copywriter)