Protocol Owned Liquidity and DAO
Last updated
Last updated
Protocol Owned Liquidity ("POL") has been an extremely popular term in DeFi since 2021, mostly thanks to . Particle Money wants to explore and adopt the latest DeFi innovations, including a Protocol Owned Liquidity feature closely related to our Minting mechanism. The DAO will oversee the management of this protocol, aiming to enhance liquidity by strategically allocating it to other agreed-upon decentralized exchanges that use a voted escrow system.
Additionally, the DAO is allocated 10% of particle emissions to further incentivize liquidity through methods such as bribes, locks, and votes.
The intent of these funds is not for the DAO's operational costs but to strengthen liquidity positions.
Profits and allocated emissions generated by DAO can be : - Used for Bribes - Swapped to Particle/ETH liquidity - Locked into third party dex veToken to get voting power (then used on Particle or xEth gauges)
In Particle Money on Base, when minting xETH, 0.5 x (1 - CR%) of ETH invested is used to buy back Particle. Then the protocol has both Particle and ETH tokens available to add liquidity for the Particle/ETH LP.
We will monitor and fine-tune the POL parameters as needed. This POL can be used later on some ve(3,3) dex to generate rewards & voting power.