Algorithm

Algorithm Benefits

  • Risk Mitigation: Linking Warpcore to Lightspeed provides a robust framework that minimizes typical cross-chain transaction risks.

  • Deflation and Rewards: Warpcore not only powers the system but also reduces the supply of Lightspeed over time while rewarding users.

Feeless Rewards

  • Zero Tax on Native Token Swaps: Swapping Lightspeed with native tokens like ETH incurs no tax, promoting ease of use and liquidity.

  • Tax on Direct Token Swaps: When swapping directly between Lightspeed and Warpcore, a tax applies. This mechanism is designed considering that the vast majority of transactions (99%) involve native tokens.

Liquidity Pool Mechanics

Imagine liquidity pools as containers of water:

  • Liquidity Adjustment: When users swap tokens with one or more pool, it triggers a rebalancing mechanism across Speed and Core pools. This process not only maintains equilibrium but also activates the tax mechanism, which in turn fuels deflation and the distribution of rewards.

  • Taxation for Balance: By taxing liquidity pools, we ensure a continuous cycle of liquidity adjustment, deflation, and reward distribution, enhancing the ecosystem's sustainability.

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