CORE Vault has launched its final liquidity generation event. Unlike standard token generation events where users are provided with newly minted tokens, users lock up liquidity in CORE LGEs.
The Final Liquidity Generation Event
The new Liquidity Generation Event will allow any ERC-20 token to be deposited in exchange for CORE LP tokens. Each contribution will be sent back to users immediately after deposit. This Liquidity Generation Event (LGE) will feature a CORE-DAI pair.
The smart contract often recognizes all LP tokens for contribution, with the exception of locked liquidity LP tokens. The contract also accepts wBTC/ETH, DAI/wBTC, and similar pairs for deposit.
In order to combat price manipulation, all fees on transaction for the CORE token have been raised to 25.5 percent during the liquidity generation event.
In addition, the contract will retain Ethereum and make strategic market buys in order to optimize the sum of DAI & CORE deposited into the Liquidity Generation Event. These sales will vary with regards to how much Ethereum is used to market buy DAI/CORE, along with the intervals of time between each buy.
By absorbing CORE “fork” projects, the CORE team will leverage Ethereum from these projects in order to fund “strategic buys”.
Through successful negotiations with forked projects, the CORE team secured over 5,000 Ethereum in Strategic Buys. Estimations suggest that the final number of LGE contributions from individual participants can be more than four times higher than that.
The contract is expected to retain a 50/50 CORE and DAI balance that has been deposited. Skewing towards CORE acquisition, owing to the fee on transaction (FOT) of 25.5 percent.
What Happens to LGE Contributions?
At the end of the collection period, the assets contributed as liquidity are locked into a liquidity pool and no user would ever be able to withdraw from the pool after sending in their initial contribution.
Instead, users are provided with liquidity pool tokens. This occurs without CORE minting a single new coin.
Essentially, users are buying into the farming mechanism of CORE, as LP tokens would be used to farm more CORE tokens rather than be traded themselves.
The goal of this was to create a price floor. The CORE team’s aim is to provide a farming opportunity without users worrying about coin inflation. CORE’s maximum supply will always be 10,000.
Sustainable Crypto Farming
The goal behind CORE seems to be focused on consistent yield over time rather than instant farming yield, which leads to large amounts of sell-offs and limits the overall lifespan of the coin. As such, the APY for CORE farming is much lower than many other “degen” farming coins.
The Final Liquidity Generation Event would conclude the fundraising aspect of CORE, facilitating the move to the project’s long-awaited Phase 1.