Liquidity Engine
Last updated
Last updated
Once a BioDAO successfully completes its Funding process, it migrates to an AMM on an external Decentralized Exchange (DEX), where the BioDAO's token is freely trade-able. The pool is seeded using the initial BIO deposited during the Curation phase, as well as some portion of the BioDAO token supply. This liquidity, which is owned the BioDAO, is locked in the pool for a set period of time, during which the BioDAO earns fees on its position.
The total size of the liquidity position, therefore, is determined based on the Curation parameters initially set by the BioDAO.
The Bio Protocol is also able to supplement liquidity, provided BIO token holders vote to do so. The Bio Protocol treasury will earn fees on this position.