> For the complete documentation index, see [llms.txt](https://particles-money.gitbook.io/particles-money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://particles-money.gitbook.io/particles-money/mechanism/protocol-owned-liquidity-and-dao.md).

# Protocol Owned Liquidity and DAO

Protocol Owned Liquidity ("POL") has been an extremely popular term in DeFi since 2021, mostly thanks to [Olympus](https://www.olympusdao.finance/). 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)

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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.
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