![]() Safemoon’s Safety Monthly ProtocolĪ common misconception of static rewards, LP acquisition, manual burns, and heavy APY averages is the subjectivity of impermanent losses that bring LPs (liquidity providers) into farming reward generators. In addition, the total number of SAFEMOON burned will be displayed on the website, which further increases the transparency of identifying the current circulating supply at any given point in time.Īs of September 23, 2021, Safemoon’s market cap was $856,476,898 compared to Bitcoin’s market cap of $823,203,662,065. SafeMoon aims to implement a burn strategy that is beneficial to those involved in the long term. Manual burn conditions and amounts can be advertised and tracked. The token burn is controlled by the team and promoted based on achievements, helping to keep the community rewarded and informed. However, in the early days, continuous burn on either protocol was good, meaning that burn could not be limited or controlled in any way. Sometimes burn matters, but sometimes doesn’t. The burn will be carried out by the relevant team according to the situation. Token burn: A small portion of the transaction fee in each transaction will be moved to the Safemoon burn address for burning. ![]() It is believed that for these reasons, this model and protocol will triumph over outdated reflection tokens. All of this is to alleviate some of the hassles we are seeing with current DeFi reflex tokens. The goal is to prevent a bigger drop when big holders decide to sell their tokens later in the game, which prevents price fluctuations as much as it would without the automatic LP feature. With the addition of SAFEMOON token LP, price stability reflects this feature, providing holders with a solid price floor and cushion. This is different from the burn function of other reflection tokens, which in the short term only facilitates the authorization of supply reduction. In theory, the added LP creates stability from the provided LP by adding a tax to the token’s overall liquidity, thereby increasing the token’s overall LP and supporting the token’s price floor. Second, the penalty is an anti-arbitrage mechanism that guarantees trading volume as a reward for holders. First, the contract takes sellers’ and buyers’ tokens and adds them to the LP, creating a solid price floor. It has a function that acts as a two-fold beneficial system for holders. But the 5% fee is split 50/50, half of which is automatically converted to BNB (Binance Coin) to support the Safemoon/BNB trading pair. Liquidity fund pool: Part of the handling fee in each transaction is used for the fund pool and other platforms, and 5% of the handling fee is automatically exchanged for LP to provide liquidity.
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