LP Wrapper Ecosystems

Wizard and Dragon tokens are wrappers for the liquidity provider (LP) tokens associated with Magic and Dark Magic. Meaning, instead of holding LP tokens that don’t have a recognizable or marketable name, you will hold a token with a name associated to the type of LP pairing you have. For example, instead of having a Magic/axMATIC Quickswap LP token, you’ll have a token named Drax, the first named LP token, which represents your MAGIC/axMATIC LP holdings. And, respective to Magic, when you have MATIC/axBNB Pancakeswap LP tokens, you will have a token representing those LP tokens.

They will be used as an on-ramp for other projects that launch or partner with Magic. These wrapped tokens are distributed at a 1:1 mint ratio to the LP value and will result in a permanent lock to the LP inside the wrapper. So whatever LP amount you hold would be the corresponding associated wizard token amount you are provided. That Wizard token therefore represents your LP balance.

The purpose of wrapping the LP into a Wizard or Dragon token is to give it significantly more flexibility in future use-cases, as well as possible exchange listings/ease of providing liquidity. Potential secondary use cases include a secondary market for LP’s outside, aggregator listings, self-sustaining ecosystems onboarding, and other gamification elements as we create additional wizard tokens in the ecosystem. To put in in less technical terms: It makes life easier for everyone in managing LP tokens; both for project developers to create value add and community members. Credit to the Unicore project (since absorbed into Core) for coming up with the concept.

Look for partner projects in development to be released that will have Magic ecosystem tokens as a pivotal roles in their ecosystems and the expansion of the value of Wizards and Dragons to truly reward LP holders.