⚖️Quanterra Auto-Liquidity Mechanism (QALM)

Auto Liquidity

Market liquidity is critical and is instrumental in enabling the buy and sell of $QUANT on PancakeSwap.

Liquidity can be thought of as a large pool of money that is split 50/50 between $QUANT and $BNB. There is a conversion factor set to the amount of $QUANT that can be obtained through BNB, for example: 1 BNB equals 24.66 $QUANT.

When someone purchases $QUANT, the price per $QUANT increases, and the ratio above changes to account for this. The same holds true for sells.

Liquidity enables anyone to buy and sell their QUANT/BNB at any time, but the less money/liquidity in the pool, the lower the price, which is why our Quanterra Auto-Liquidity Mechanism (QALM) automatically adds more liquidity to the pool, resolving that issue.

The Quanterra Auto-Liquidity Mechanism (QALM) operates as follows:

Our Quanterra Auto-Liquidity Mechanism (QALM) will automatically inject liquidity into the market every 48 hours. Each buy or sell order incurs a 4% tax, which is automatically stored in an Auto-LP wallet. Additionally, our protocol's smart contract includes a mechanism that intelligently takes 50% of the $QUANT stored in the wallet and automatically purchases BNB at the current market price.

The remaining 50% of $QUANT in the Auto-LP wallet will be used for Quanterra liquidity, resulting in a 50/50 weighting of $QUANT/BNB that will be automatically added as new, additional liquidity to the market pair, thereby increasing the pool's liquidity.

The QALM will accomplish this every 48 hours by increasing the pool's liquidity, allowing $QUANT holders to easily sell their tokens at any time with minimal to no market slippage. Additionally, it will aid in maintaining protocol stability, ensuring that the APY is maintained for the duration of Quanterra.