Web 3 Finance Defi Project
  • Web 3 Finance Defi Project
  • GUIDES
    • How Does Auto-Staking Work?
    • Web3 Finance Insurance Fund (WIF)
    • Web3 Treasury
    • WEB3 Auto-Liquidity Engine (WALE)
    • Fixed APY
  • How the APY is Calculated
  • W3F Token
    • WEB3 FINANCE Buy and Sell Fees
    • Trading Fees Explained
  • Roadmap
  • Fair Launch Sale
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  1. GUIDES

WEB3 Auto-Liquidity Engine (WALE)

Market Liquidity is an important element that plays a vital role in allowing the buy & sell of W3F tokens on PancakeSwap.

In simple terms, think of Liquidity as a big pool of money that is split into half (50/50) between W3F tokens & $BNB tokens. There is a conversion ratio is set that determinesto the amount of W3F you can get with BNB, for example: 1 BNB = 18.1 W3F.

When someone buys W3F, the price per WEB3 appreciates and the ratio above will also change accordingly to account for this. The same is applicable in the opposite direction for sells.

Liquidity allows everyone to buy & sell their W3F/BNB at anytime, however, if there is a liquidity constraint in the pool, you might get bad prices. To counter this, what our W3F Auto-Liquidity Engine (WALE) does is, to add more liquidity to that pool by itself and eventually solving that issue.

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Last updated 3 years ago