Liquidity Engine

The Liquidity Engine is the economic heart of Bio Protocol V2. It's a system designed to create sustainable, long-term funding for projects through mechanisms that leverage secondary market activity. This moves away from a reliance on large, one-time raises and towards a model where a project's financial health is directly tied to its community engagement and market traction.

Post-Launch Liquidity

Immediately following a successful fixed-price sale, the Liquidity Engine automatically creates a liquidity pool (LP) for the project's new token on a decentralized exchange.

AMM Seeding: For a standard agent launch, all $BIO raised from the public sale (which accounts for 37.5% of the token supply) is paired with another 12.5% of the project's token supply.
Deep Liquidity: This process is designed to create a deep and healthy liquidity pool from the moment the token begins trading, which helps to stabilize the market and facilitate efficient price discovery.

Secondary Market Fees

The primary mechanism for sustainable funding is a 1% fee applied to every buy and sell transaction of the project's token on the secondary market. This fee is automatically collected and distributed as follows:

70% to the Project: The majority of the fee revenue is sent directly to the project's treasury. This provides a continuous stream of non-dilutive funding that can be used for research, development, and operations.
30% to the Bio Protocol: The remaining portion of the fee revenue is sent to the Bio Protocol treasury, contributing to the overall health and growth of the ecosystem.

The Virtuous Cycle

This entire system is designed to create a powerful, self-sustaining virtuous cycle:

A strong project launch generates community excitement.
Excitement drives trading volume on the secondary market.
High trading volume generates significant fee revenue for the project.
The project uses this revenue to fund further development and hit new milestones.
Progress and communication lead to more community excitement, and the cycle continues.

This model directly aligns the incentives of the project team with its community of token holders, creating a powerful engine for long-term growth.

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Last updated 24 days ago

Post-Launch Liquidity

Immediately following a successful fixed-price sale, the Liquidity Engine automatically creates a liquidity pool (LP) for the project's new token on a decentralized exchange.

AMM Seeding: For a standard agent launch, all $BIO raised from the public sale (which accounts for 37.5% of the token supply) is paired with another 12.5% of the project's token supply.

Deep Liquidity: This process is designed to create a deep and healthy liquidity pool from the moment the token begins trading, which helps to stabilize the market and facilitate efficient price discovery.

Secondary Market Fees

70% to the Project: The majority of the fee revenue is sent directly to the project's treasury. This provides a continuous stream of non-dilutive funding that can be used for research, development, and operations.

30% to the Bio Protocol: The remaining portion of the fee revenue is sent to the Bio Protocol treasury, contributing to the overall health and growth of the ecosystem.

The Virtuous Cycle

This entire system is designed to create a powerful, self-sustaining virtuous cycle:

A strong project launch generates community excitement.

Excitement drives trading volume on the secondary market.

High trading volume generates significant fee revenue for the project.

The project uses this revenue to fund further development and hit new milestones.

Progress and communication lead to more community excitement, and the cycle continues.

This model directly aligns the incentives of the project team with its community of token holders, creating a powerful engine for long-term growth.