ENCORE, a fork of CORE Vault, will be absorbed back into its “parent” coin, CORE. This is one month after ENCORE held a Liquidity Generation Event (LGE) where 10,000 ETH (around $4 million as of writing) was contributed.
ENCORE Gets Absorbed into CORE
Participants of the ENCORE LGE have not received gains proportional to their original principal due to low trading volume for the ENCORE token.
As such, the ENCORE team has decided to bring ENCORE’s liquidity into CORE’s liquidity pools, which benefit from forced arbitrage and significantly higher trading volume (and thus, higher accumulated fees).
Due to CORE’s innovative ERC-95 technology, forced arbitrage, consistent trading volume due to continued interest in the CORE project, and upcoming vaults, guaranteed APY is attainable for newly converted ENCORE LP holders.
As such the CORE and ENCORE teams believe that a net win-win is possible for LP token holders of both tokens.
Next Steps for ENCORE LP Holders
The next moves in the transition, according to the CORE Vault medium blog, will be:
All buys of ENCORE tokens on Uniswap end now.
The CORE dev team will zap all ENCORE LP tokens into the upcoming DAI/CORE LP.
All withdrawals from ENCORE’s vault end immediately.
The CORE team detected a memory corruption within the ENCORE Vault contract while performing due diligence; we’ll make efforts to mitigate any
concerns before zapping liquidity out.
As liquidity migrates to the new CORE pair, all ENCORE tokens burn.
Basics of the ENCORE Project
The ENCORE project originally started as a “sister” token to the CORE project. As a fork of CORE, ENCORE code was extremely similar to CORE code. During its initial LGE, ENCORE raised an astounding 10000 ETH (versus CORE’s 3500 ETH raise).
However, some key differences were that ENCORE held an LGE that included an ENCORE-LINK pair which failed to garner a significant amount of contributions.
In addition, ENCORE had a troubled token launch where many users were not able to buy or sell their ENCORE within around the first twenty minutes of launch on Uniswap.
These factors, along with low trading volume, may have led to the decision of ENCORE leadership to merge their liquidity pools with CORE Vault.