BuildABlock’s Liquidity Protocol
Introduction to liquidity routing and the BUILD liquidity protocol:
Liquidity pools and liquidity routing are the foundation of blockchain trading operability. For bsc tokens, the most common liquidity provider is BNB, although tokens such as BUSD, wUSDT, wCAKE and wETH are often used as well. The BUILD liquidity protocol will involve BUILD becoming a liquidity provider, in the same way these other cryptocurrencies are utilized. The ways in which this will advantage BUILD Token, as well as the ways in which this will advantage other tokens using BUILD as one of their liquidity providers will be discussed throughout this document.
How does this advantage BUILD Token:
Whenever a token uses BUILD as one of their liquidity providers, BUILD Token will benefit from this token’s volume. This does not mean that BUILD is “stealing” this token’s volume; Rather, it is shared through the liquidity pair, directly increasing the price of BUILD and strengthening liquidity. Essentially, this pair allows BUILD to benefit from the launch hype of recently launched projects in order to passively grow its market cap while building even greater stability within the liquidity pools. The extent to which the BUILD price and market cap will be affected by a liquidity pairing will depend on multiple factors, such as the amount of BUILD attributed to the pair, as well as the supply percentage allocated to this pair by the partner token.
Initial Example:
“Inu Coin” (IC) pairs 50% of its liquidity to BUILD, creating an IC/BUILD liquidity pair through which IC buys can now be routed. 10% of the TOTAL SUPPLY of BUILD is allocated to the creation of this pool.
BUILD Market Cap: 1 Million
Total Value of the BUILD tokens in the IC/BUILD pool: 100K IC initial Market Cap: 200K
Total IC/BUILD LP Pool Value: 100K
Total IC/BNB LP Pool Value: 100K
In this example the total IC Market Cap increases in value by 500%, from 200K to 1 Million.
50% of this value is stored within the IC/BUILD pool, the value of this pool also increases by 500%, from 100K to 500K. This means that 10% of the total BUILD market cap has increased by 500%.
This means that the TOTAL BUILD market cap has increased by 40% (50% -10% in the IC/BUILD liquidity pool). In this example, BUILD has added 400K to its market cap off the launch volume of Inu Coin. (Once again please be aware that this is an example; changes in the price of BNB and trades being made on the BUILD token itself will play a part as well as many other contributing factors.)
How does this advantage BUILD’s liquidity partner:
Any token pairing it’s liquidity to BUILD will also benefit from BUILD’s growth. As BUILD continues to grow in market cap, the value of a partner token’s BUILD liquidity pool will grow in value, raising this token’s market cap by extension. Once again, this volume is not taken away from BUILD; It is shared through the liquidity pair, and is mutually beneficial for both tokens. While any token can buy BUILD off the market and put it in its liquidity pool, BUILD will only announce and acknowledge official pairs, projects which have been examined and vetted by the team and have been judged to be sufficiently sustainable and potentially beneficial to the BUILD ecosystem.
Official partner token developers will benefit from substantial rebates on services along with some for free, and will have their developments prioritized by the team. Their token will also automatically be listed at no cost on the BUILD yield farm (when it is released).
Official BUILD partner criteria:
Although anybody can use BUILD in their projects initial LP, BUILD will only officially partner with tokens the developer team has judged are innovative and sustainable. Official BUILD liquidity partners must bring a new and realizable idea to the space, and must have the resources to accomplish their goals.
To become an official BUILD Token liquidity partner, contact @Fantathesoda or @zeusthegreat on telegram, or send an email to buildablockteam@buildablocktoken.info. Please include a link to your whitepaper and website, as well as a brief description of your project and a summary of your previous crypto accomplishments.
