๐ฆCollaborating with UTXOSwap
๐ To ensure the long-term stability and operation of the Catnip platform, we are collaborating with UTXOSwap to establish a robust liquidity pool for RGB++ tokens. This collaboration aims to secure liquidity, maintain the value of the tokens, and ensure a healthy trading environment for the community.
Liquidity Pool Migration
Pool Threshold:
Once the liquidity pools on Catnip reach a specified amount (i.e., 100% filled), the CKB in the pool will be transferred to the liquidity pool on UTXOSwap. This transition helps maintain adequate liquidity and price stability for RGB++ tokens across different platforms.
Initial CKB Pool Target:
Initially, when the CKB pool reaches 1 million CKB, the following steps will occur:
Withdrawal of CKB: The CKB in the pool will be withdrawn from the Catnip platform.
Adding Liquidity on UTXOSwap: The withdrawn CKB will be used to provide liquidity on UTXOSwap, ensuring the continuation of trading in the ecosystem.
Price Alignment with Catnip: The price of tokens on UTXOSwap will be aligned with the price on Catnip before the pool reaches its cap, ensuring a smooth and consistent pricing transition for traders.
Stop Trading on Catnip: Once the liquidity is transferred, Catnip will halt trading operations for that particular pool, allowing UTXOSwap to handle liquidity and trading.
5% CKB for Buyback: 5% of the CKB in the fulfilled pool will be allocated for buyback of CAT++ tokens, providing additional support to the tokenโs value and fostering a healthy ecosystem.
Buyback Strategy:
The 5% buyback mechanism helps sustain the value of CAT++ by repurchasing tokens from the market. This ensures that some of the CKB liquidity will directly benefit the CAT++ token holders by reducing the circulating supply, which could positively influence the token's price over time.
Benefits of UTXOSwap Collaboration:
Enhanced Liquidity: By leveraging UTXOSwap, the liquidity pool ensures better token trading volumes and prevents slippage issues.
Price Continuity: By basing the price on Catnip before reaching the pool cap, users experience smooth price continuity between the two platforms.
Buyback Support: The 5% buyback of CAT++ helps stabilize the tokenโs value and provides incentives for long-term holders.
Long-term Stability: Transferring the liquidity to UTXOSwap helps support the long-term value of RGB++ tokens, benefiting the entire ecosystem.
Seamless Transition: The transition of liquidity from Catnip to UTXOSwap will be smooth and automatic once the pool conditions are met.
Our collaboration with UTXOSwap represents a key step in ensuring the liquidity and value of RGB++ tokens. As the CKB pools on Catnip reach their target levels, the transition to UTXOSwap will ensure long-term sustainability and enhanced trading experiences for users. Additionally, the 5% buyback mechanism provides extra support for CAT++ token holders.
Stay tuned for more updates on this integration and how it benefits the Catnip and RGB++ communities.
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