🛡️Liquidity shield

Normally, reflection tokens include their liquidity pools in the reflections, even though they are protocol owned liquidity (POL). That means the ratio of tokens against their paired token shifts and the token price decreases, even without anyone selling.

We take a different approach however, introducing the Liquidity Shield:

By excluding tokens in our liquidity pairs from reflections, we achieve 3 main advatages:

• we avoid artificially lowering the price of users' investments

• we increase the amount of reflections users get since they do not have to share them with the tokens in the liquidity pair anymore

• through the way reflections work internally, we introduce passive leverage, meaning the price increase resulting from buys is higher, allowing for faster growth and more returns!

The liquidity shield in combination with our custom maths has the added benefit that the more tokens there are in the LP (the less tokens have been bought already), the higher the rate of reflections users receive! That means when the project is experiencing a lot of selling pressure, new buyers are incentivised by a attractive reflection rates.

This means that early adopters get the highest amount of reflections and as more people buy in and the speed of reflections slows down over time.