SLP

Strategic Liquidity Provision

We firmly believe that tokenomics and market mechanics are pivotal for the long-term success of Ÿ. Our commitment to data-driven decisions has led us to pre-launch research on this matter, ensuring we establish the most optimal decentralized foundation for the project.

1. To ensure the utmost integrity and equitable opportunity, we've started Ÿ with a 100% fair launch mechanism. By allocating the majority of token supply to the liquidity pool and implementing anti-snipe functions, we mitigate the price volatility and decrease risk to both the project and its users. This approach fosters a decentralized and transparent token distribution.

2. To optimize long-term success, we've developed the Strategic Liquidity Provision (SLP) Program. This initiative is supported by a sophisticated model backed by Uniswap v2 mechanics. This model The Strategic Liquidity Provision (SLP) Program is intentionally formulated to mitigate speculative elements in trading activity associated with the YAI utility token.

Figure 04 - Effect of Liquidity Strategies on Token Price and Liquidity Pool Value

The Strategic Liquidity Provision (SLP) Program dynamically enhances market depth and stability to the YAI/ETH liquidity pool. The SLP employs a dual approach:

1. Strategic Buybacks: The program utilizes portion of revenue to repurchase YAI tokens from the market.

2. Optimized Liquidity Provision: Purchased YAI tokens are paired with ETH in 50/50 ratio to strengthen the liquidity pool.

The frequency and size of the SLP's execution are determined by excess revenue and market environment. In order to mitigate frontrunning, these will not be announced beforehand and will occur in a random manner.

Detailed findings and insights from the model are presented on the following page.

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The project team is not responsible for decisions made based on the content of this document and user understanding of our SLP program.