Protocol Owned Liquidity
When you make a token swap (trade) on the exchange, you will pay a 0.2% trading fee, and a portion of the fees is used to buyback $ARN and form POL
0.10% - Returned to liquidity pools in the form of a fee reward for liquidity providers.
0.05% - Buyback of $ARN to form Protocol Owned Liquidity (POL)
0.05% - CroArena Finance Treasury
OlympusDao was the first project in the defi space to introduce Protocol Owned Liquidity. However, CroArena Finance is the first AMM/DEX that will be introducing POL to our system.
By allocating a big portion of our fees to buying back ARN and forming LPs, we will be able to ensure that as the platform scales in trading volume, it will help create deflationary pressure on ARN, resulting in a price increase over time.
On top of that, by forming LPs, we are ensuring that there will always be liquidity for MMF tokens. Even during bear market, there will be enough liquidity to support any sell offs.
Last updated