Token-Owned Liquidity ToL
(Token-Owned Liquidity) refers to a scenario where the Automated Market Maker (AMM) resides within the token itself and possesses ownership of its own liquidity.
Every WIG token created is consistently backed by a minimum of 1 ETH. Stringent guidelines dictate the minting of WIG, and its acquisition is only possible through the provision of ETH to the Toupée Tech Bonding Curve.
This framework facilitates:
Single-Sided Liquidity: Participants can contribute a single asset to liquidity pools without needing a corresponding asset, thus eliminating the requirement for paired assets.
Absence of Impermanent Loss: The risk of impermanent loss, typical in conventional liquidity provision systems, is mitigated in the Token-Owned Liquidity paradigm.
Virtual Liquidity: The token's architecture incorporates an inherent mechanism for liquidity provision, resulting in enhanced trading efficiency.
Floor Price: A predetermined floor price is established for the token, ensuring a baseline valuation.
Borrowing: Borrowing mechanisms can be facilitated against the token, driven by its consistent backing.
Call Option Emissions: The token's architecture can support the issuance of call options, fostering diverse use cases.
This innovative model transforms the traditional liquidity provision landscape by integrating AMM dynamics within the token itself.
Last updated