Inverse Protocol
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Inverse Auto-Liquidity Engine
Market Liquidity is of utmost importance and plays a vital role in allowing the buy & sell of $INVERSE tokens on PancakeSwap.
In layman's terms, think of Liquidity as a big pool of money that is split 50/50 between $INVERSE tokens VS $BNB tokens. There is a conversion ratio that is set to the amount of $INVERSE you can get with BNB, for example: 1 BNB = 25 INVERSE.
When somebody buys INVERSE, the price per INVERSEwill go up and the ratio above will also change at the same time to account for this. The same goes in the opposite direction for sells.
Liquidity allows for anybody to buy & sell their INVERSE/BNB at anytime, however the less money/liquidity there is in the pool, the worse price you get so what our Inverse Auto-Liquidity Engine does, is add more liquidity to that pool by itself and therefore solving that issue.
Here is how the Inverse Auto-Liquidity Engine works:
Every 48 hours our Inverse Auto-Liquidity Engine will inject automatic liquidity into the market. On each buy or sell order there is a 4% tax fee that automatically gets stored into an Auto-LP wallet and built into our protocol's smart contract is the mechanism which smartly takes the 50% of the amount of INVERSE stored in the wallet, and will automatically buy BNB at the current market price.
The remaining 50% of INVERSE in the Auto-LP wallet will be used for the INVERSE side of liquidity, therefore giving equal an 50/50 weighting of INVERSE/BNB which will then be automatically added as new, additional liquidity into the market pair and raising the amount of liquidity in the pool.
The Inverse Auto-Liquidity Engine will do this every 48 hours by adding more and more liquidity to the pool which will allow $INVERSE token holders to easily sell their tokens at anytime with little to no market slippage. It will also aid in maintaining protocol stability to make sure the APY is upheld for the entire life of the Inverse protocol.
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