Comment on page
🛑
Automated Braking System (ABS)
Automated Braking System (ABS) Safety Feature
Does FBX ring a bell? In crypto you can always see some token project pump to reach some dizzying All Time High price, exploding their market cap to millions to hundreds of millions or even billions of dollars - and then look at the their liquidity pool and notice... "Hey, they only have $10,000 in BNB". That, my friend, is a bank run about to happen....
The DRIVE system will vaporize SGO from the selling liquidity pool at the speed of the sell transactions as a reaction to supporting SGO price - keeping SGO price in alignment with the TWAP (Time weighted average price). To keep from over vaporizing and ending up with a SGO price of $100,000, minimum limits are in place to override DRIVE's hunger to vaporize SGO towards extinction.
It is the built-in regulating safety system to prevent DRIVE from vaporizing too much SGO in the total supply.
ABS makes several checks:
- Prevent vaporization if that will lead to a total supply under 5000 SGO.
- Prevent vaporization in an individual SGO LP if it would put SGO LP supply below 500 SGO for that pool.
- Prevent vaporization if the liquidity backing (Cash to Market Cap ratio) is below 8%.
Over time, as the rebases slowly replenish supplies and SGO rises above the minimum limits, DRIVE will again continue to vaporize SGO maintaining total supply at only 5000 SGO...imagine what your SGO would be worth with a total supply of only 5000?! Not a bad problem to have.