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Liquidity Generation Events
The First Liquidity Generation Event:
A Liquidity Generation Event (LGE) is a concept that was initially created by the CORE (cVault) team. The first LGE used was to mint and distribute all 10,000 CORE tokens fairly.
TCORE used the same process, but half of the total supply of TCORE/wBNB was reserved to TCORE/wETH stakers, depending on how much LP they own.
The last Liquidity Generation Event lasted 48 hours, in which contributors were able to supply BNB to the LGE smart contract. The smart contract used the 3125 TCORE (50% of total supply) and the total amount of BNB supplied throughout the 48 hours to create a TCORE/BNB BakerySwap liquidity pool. The liquidity created through the LGE is locked up and the LP tokens given out can not be redeemed for their underlying assets. The LGE participants received Liquidity Pool tokens in return of their BNB contributed to the LGE. Each transfer of TCORE is charged with a 2% fee.
Note that the LGE happened in the same way (without the airdrop) to launch TCORE/wETH pair on Uniswap.
The mechanism behind Liquidity Generation Events:
An LGE uses a smart contract which collects tokens during a determined period. After the timer is over, the contract uses the collected funds to create a new liquidity pool. Participants who contributed tokens to the LGE smart contract will receive LP tokens after the event is over. These tokens can be staked on the tornado.finance website to receive rewards.
During the LGE, the smart contract collects and uses tokens in different ways to maintain its peg. It is designed to have a positive impact on TCORE and its ecosystem.
During the Liquidity Generation Event:
Contributing funds to an LGE gives participants the ability to receive discounted LP tokens. During this event the price per LP token does not scale. It is even for all contributors. After the event is over the price will scale along with the pool, meaning it will become increasingly expensive for each new minted LP token.
Last modified 1yr ago