HOW DOES SAFEMOON CASH INTEND TO SUSTAIN LIQUIDITY?
Liquidity is very important in all financial systems – be it fiat or crypto. As such, any investments you want to make in a cryptocurrency project ought to be in one that has verifiable proof of sustaining liquidity.
Safemoon Cash is designed to be both a rival to Safemoon, as well as one of the cryptocurrency projects with real-world use cases.
But, how does this project intend to sustain or keep up with the number of transactions that would be facilitated in the pool in the coming months?
LIQUIDITY SUSTAINABILITY: THE SAFEMOON CASH APPROACH
Safemoon is the project that Safemoon Cash wants to model and do better than. As such, it will outshine the former, while rolling out more unique solutions for liquidity aggregation.
GIVING UP GOVERNANCE
The first thing Safemoon Cash did was to give up the governance of the token and the ecosystem as a whole.
Thus, the founding members are more or less in the same hierarchy as the new members and early investors.
The devolution of powers in this manner is meant to open up the Safemoon Cash ecosystem for the investors to be a part of the decision-making cum governance of the project.
LOWER GAS FEE
The first thing Safemoon Cash does is to reduce or lower the gas or network fee. This is done both to reduce the amount the investors spend on transaction fees and to create a sustainable means of income for the project.
Only a 4% tax is charged on every Safemoon Cash transaction made in the liquidity pool.
Now, the 4% tax is utilized for the benefit of every member of the Safemoon Cash ecosystem. The following model is used to facilitate that distribution:
AUTOMATIC LIQUIDITY PROVISION
The first distribution is done by distributing or shifting 2% of the liquidity to the Safemoon Cash liquidity pool.
This is done to create a steady rising price floor whereby the liquidity pool wouldn’t lack or be short of the needed liquidity required for processing transactions.
HOLD AND EARN
Safemoon Cash also considers the interest of the holders of the Safemoon Cash crypto token. In this case, the token holders will benefit from the remaining 2% of the crypto token, which will be distributed to all the holders.
Thus, you can earn more money in Safemoon Cash just by holding the token.
How does Safemoon Cash Finance the Liquidity?
Good question! So, how does Safemoon Cash raise funds to finance the liquidity? It is quite simple!
The project raises money by charging only 4% worth of tax or network fee on each of the transactions done on the Safemoon Cash liquidity pool.
The transactions could be buying cryptocurrencies, selling cryptocurrencies or simply transferring your cryptocurrencies to another wallet.
SUSTAINABILITY
Safemoon Cash is not only interested in creating liquidity for the pool. It also wants to create sustainable liquidity.
The primary way of doing that is by deploying a Yield Farming protocol. This protocol will be used for farming the Safemoon Cash Governance token.
The farming will be done in the Safemoon Cash Bank. This way, the Safemoon Cash will be locked up, thereby, reducing the number of investors that would have loved to sell their assets.
In turn, the liquidity will increase.
CONCLUSION
Liquidity is very essential in any cryptocurrency transactions. Safemoon Cash has shown that it has what it takes to create sustainable liquidity that will be leveraged to facilitate the goals of the project.
Website: https://safemooncash.org/
White paper : https://drive.google.com/file/d/1YZyTJteAVpaHna13UU2sZBJkIBB4 K 702/view
Twitter : https://twitter.com/safemooncash
Telegram : https://t.me/safemooncash
Discord: https://discord.com/invite/fDp6pQ4Hbd
Reddit : https://www.reddit.com/r/SAFEMOONCASHCommunity/
Youtube : https://www.youtube.com/channel/UC15-d8hPAs30OxAUX9VRdng
Tiktok: https://www.tiktok.com/@safemooncash
Instagram : https://www.instagram.com/safemooncash
AUTHORS DETAILS
Bitcointalk username- Kakal
Bitcointalk Profile: https://bitcointalk.org/index.php?action=profile;u=2767315;sa=summary
Wallet: 0x09c09F509f1D366257f91bFfEb00174c7643CD77