Liquidity Generation Events

The First Liquidity Generation Event:

A Liquidity Generation Event (LGE) is a concept that was created by the CORE team. The first LGE used was to mint and distribute all 10,000 CORE tokens fairly.

The first Liquidity Generation Event lasted one week, in which contributors were able to supply Ethereum to the LGE smart contract. After collecting Ethereum throughout the week of the event. The smart contract used the 10,000 CORE and the total amount of Ethereum supplied throughout the week to create a CORE/ETH Uniswap 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 Ethereum contributed to the LGE. Each transfer of CORE is charged with a 1% fee, of which 93% goes to the staked LP tokens and 7% to the developer fund.

The mechanism behind Liquidity Generation Events:

An LGE uses a smart contract which collects a variety of 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 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 CORE and its ecosystem. The example below demonstrates these mechanisms:

CORE/wBTC Liquidity Generation Event collects & uses:

ETH - market buys CORE, wBTC or both depending on the current need.

wBTC - market buys CORE or uses wBTC to balance the peg.

CORE - is used to maintain the peg. cannot be sold. if contract receives too much CORE it refunds it proportionally.

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.

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