Price Floor
Last updated
Last updated
Liquidity pool tokens will be locked. This means that when you wrap a token pairing to Dark Magic or Magic, you cannot unwrap the LP token. Thus there is a price floor mechanic. The permanently locked liquidity pool where the pair to Magic can be swept out and utilized for the growth and benefit of the community. Credit to Rootkit for the concept.
The idea is quite simple: If every Dark Magic or Magic token not in the liquidity pool is sold into that pool, the remaining token pairing in the pool would be the effective price floor. As a result, this creates a system in place to re-use that paired token for strategies that benefit the DeFi Magic community.
The following infograph demonstrates this in illustration:
