Token allocation for the Liquidity Farming category is one of the major chunk of reserved tokens, 25% of the total amount of tokens, which is 750,000,000 tokens, allocated for the sustainable rewarding for liquidity providers.
Total Allocated Tokens
60 % of reserved tokens will be allocated for yield farming.
40 % of reserved tokens will be allocated for $DGOLD currency staking
Liquidity farming assets will be stored into a smart contract-based DEGENGOLD/USDC liquidity pool by investors known as yield farmers. These initial locked assets will be then made available to other protocol users and these tokens can be borrowed for margin trading by users of the lending platform. Liquidity providers will inject two tokens — DEGENGOLD and USDC, with USDC, typically being a stablecoin - in exchange for a share of the fees paid by users that use the pool to trade tokens.
Liquidity Pool (LP) will be initiated after the $DGOLD public sale (TGE) is completed. Ideally we will start the liquidity pool to be launched when the game is up and running. Liquidity pool will support the need of gathering $DGOLD to cover the burning estimated within the game. Thus, LP will be initiated when the game reaches the peak hype.
Initial Liquidity Pool Reserve Tokens
Usually the community expects to have a meaningful chunk of the token sale earnings, independent of the method, such as NFT sales,Private Sales or Public Sales, to be injected into the Liquidity Pool. We need to take into consideration that the price of the public sale must align with the LP listing price.
As a pool creator we will be responsible to determine each asset’s initial price, and if the pool’s pricing does not match that of the global crypto market, the liquidity provider risks losing money
As more providers contribute funds to the pool, it’s critical to keep tokens in line with market pricing
Initial Liquidity Pool Injection
Initial Token Supply
Initial USDC Reserve
Initial USDC reserve token injected in the Liquidity Pool will be 400.000 $USDC. Besides, the Degen Islands team will reserve around 200 SOL which is around for later injections to stabilise the token price at the pool.