United ReserveDocs

Theme

Protocol-owned liquidity ​

70% of every License becomes liquidity that is never removed.

Protocol-owned liquidity around the priceIllustrative
HigherLowerPriceGenesis liquidityLower-wall band
  • Genesis liquidity, seeded at launch
  • 70% of each later License sale, as bands below the price
Schematic. The sources say where liquidity sits relative to the price, not the band sizes.
SourceWhere it goes
Genesis saleAll genesis liquidity seeds the pool against 50,000,000 UNITED
License and Fractional License sales after genesis70% of each sale becomes lower-wall bands below the price
Manual use of the Contraction VaultThe team may buy UNITED and add liquidity to the pool
  • The protocol holds this liquidity (POL) in the pool, and nothing can remove it.
  • Every License puts 70% of its price into liquidity before a single token is emitted for it.

What can never happen ​

  • Liquidity is never removed.
  • Nothing can sell the Contraction Vault's UNITED or remove liquidity.
  • The Reserve Vault and the Incentive Vault cannot touch liquidity.

Defending the position ​

  • On a sharp fall, the range-bound defence spends Contraction Vault ETH with a budget that would lift the protocol's own position by half the drop.
  • The UNITED it buys is burned.