![]() Pooling funds in unverified third-party smart contracts The main reason behind this function is to eliminate token dependencies, including: This structure stands apart from conventional pool-farming rewards. The static reflection rewards accrue by holding the tokens and feature an innovative hold-farming reward structure. Traditional mining is both inconvenient and costly for the user. Hence, as the token matures, the auto-liquidity can be attributed to market stability capable of absorbing large market activity.Smart contracts are just like regular contracts however, instead of being drafted on paper, these contracts run in the form of protocols on the blockchain. Large liquidity pools decrease the swap volatility impacts against the overall available supply. With this, the platform aims to capture a portion of these transfers and swaps by the smart contract and utilize the function “SwapAndLiquify.” Further, the liquidity is managed by the contract, thereby alleviating the users from having any impermanent loss scenarios. These problems occur after the token pair is subjected to impermanent loss from arbitrage.Īs a solution to the problem, liquidity can be taken as a smart contract function using market activity from swaps and transfers. Without an incentive for the liquidity pool providers, problems arise in the environment. Just like the compensation of the market makers in the order book environment, proper incentives for adding liquidity are essential in any decentralized environment. However, traditional order books have been replaced by liquidity pools in a decentralized venue. ![]() Mainly, the market makers reduce the overall market volatility caused by large orders. Historically, market makers (increase the liquidity and accessibility) provide a service on traditional order book exchanges for buyers and sellers for a better user experience. Liquidity is vital for any trading environment. According to the SafeMoon whitepaper, the platform provides solutions to the subsequent problems: As a solution to these problems, the platform seeks to benefit the community within the decentralized venue. SafeMoon Protocol aims to cater to several problems related to the cryptocurrency industry, such as farming rewards, liquidity provisioning, and mining rewards. The platform is a fork of BEE combined with RFI tokenomics and an added function of auto-liquidity generating protocol. The SafeMoon Protocol is a fair-launched, community-focused DeFi token.
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