Automatic LP is the secret sauce of KeyFund. Here we have a function that acts as a two-fold beneficial implementation for holders. First, the contract sucks up tokens from sellers and buyers alike, and adds them to the LP creating a solid price floor.
Second, the penalty acts as an arbitrage resistant mechanism that secures the volume of KeyFund as a reward for the holders. In theory, the added LP creates a stability from the supplied LP by adding the tax to the overall liquidity of the token, thus increasing the tokens overall LP and supporting the price floor of the token. This is different from the burn function of other reflection tokens which is only beneficial in the short term from the granted reduction of supply.
As the KeyFund token LP increases, the price stability mirrors this function with the benefit of a solid price floor and cushion for holders. The goal here is to prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much as if there was no automatic LP function.
Sometimes burns matter; sometimes they don’t. A continuous burn on any one protocol can be nice in the early days, however, this means the burn cannot be finite or controlled in any way. Having burns controlled by the team and promoted based on achievements helps to keep the community rewarded and informed. The conditions of the manual burn and the amounts can be advertised and tracked.
KeyFund aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term. Furthermore, the total number of KeyFund burned is featured on our readout located on the website which allows for further transparency in identifying the current circulating supply at any given point of time.
KeyFund employs 3 simple functions: Reflection + LP acquisition + Burn In each trade + Dev Fee, the transaction is taxed a 5% Fee.