The DeFi based-on Algorithmic & Integrated Liquidity
The DeFi based on Algorithmic & Integrated Liquidity - Algorithmic Mint & Burn It is a system that mints MECA as much as liquidity is deposited or burns as much as it is withdrawn. According to the algorithm, it regulates the market circulation through mint and burn, prevents the consequent decrease in token price, and guarantees the value. Therefore, by adjusting the circulation of tokens in the market according to the value of the assets deposited through the system, value is directly given and guaranteed to MECA through collateral assets. This can be interpreted as the concept of the existing LP token, and the amount of MECA token held can also be seen as representing the share ratio of the assets paid into the Vault. In other words, the value of each MECA can be obtained by dividing the total value of the deposited tokens by the minted amount. - Index Effect The value of MECA held by users is the average of the sum of the assets deposited in the Vault. Vault is composed of various crypto assets, and can change the proportion of internal tokens ratio, but the overall TVL does not change. Therefore, users can minimize losses from market changes by holding MECA. TVL will fluctuate according to changes in the value of the assets deposited in the vault, which can be interpreted as the same as an index such as the S&P500. If some token's price drops rapidly, the user has to bear 100% of the loss, but the user can minimize the loss through the index. Through this mechanism, users can experience less IL compared to a pair pool in which only two tokens are tied. Value protection from bank runs. In the process of automatically adjusting the distribution volume according to the increase or decrease in the asset of the vault, we can see the same effect as using an algorithmic monetary policy tool such as the Fed. As the circulation volume increases, the assets deposited in the Vault will exist as backings, and if the Vault's collateral assets are withdrawn and reduced, the MECA token will be burned in this process to control the circulation volume existing in the market. In this process, Vault is supposed to take a certain amount of commission. Therefore, as users repeat deposits and withdrawals, the amount of collateral is gradually raised in the Vault. - Integrated liquidity pool Through the combination of these small bolts, a huge treasury is formed again. The collected tokens come together to form assets in the Vault, and as the proportion of these tokens changes, various market conditions are created. Here, users can add or remove liquidity, and it is intended that users naturally trigger arbitrage transactions according to the MECA exchange rate for each token, and furthermore, these actions naturally result in filling the insufficient liquidity in the vault. - Incentive & Disincentive Due to the change in the proportion of tokens in the course of Vault's fund operation, certain tokens may be insufficient or exceed the target. In this case, temporary incentives are paid for insufficient tokens, and disincentives are provided in case of excessive deposits to adjust the liquidity ratio. - Tokenization of order positions provides trade owner autonomy Traders can own these high-priority positions by converting them into NFTs and transferring them to others. so by using our DEX can use limit trading options as well as market trading provided in existing swaps. On top of the tick liquidity distributed through Vaults, more liquidity can be stacked by trader's limit orders. Pending order options can effectively hedge the risk to the MEV for a transaction through uncertainty about the execution of the trade. It will also take precedence in the execution of trades for a particular tick. Traders can own these high-priority positions by converting them into NFTs and transferring them to others.