When liquidity providers add LP to a pool, the corresponding tokens get automatically burned. This is a clever tokenomics mechanism that combines liquidity incentivization with deflationary pressure. The burn happens simultaneously with LP additions, creating a supply reduction effect while rewarding participants for providing liquidity. It's a balance between maintaining healthy pool depth and reducing circulating supply over time.
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fomo_fighter
· 19h ago
This trap mechanism sounds good, but I have to ask, is the burn ratio really reasonable? Will the liquidity end up disappearing instead?
When liquidity providers add LP to a pool, the corresponding tokens get automatically burned. This is a clever tokenomics mechanism that combines liquidity incentivization with deflationary pressure. The burn happens simultaneously with LP additions, creating a supply reduction effect while rewarding participants for providing liquidity. It's a balance between maintaining healthy pool depth and reducing circulating supply over time.