Stardust

Decentralized finance is made possible by using decentralized exchanges in

collaboration with liquidity pool smart contracts. For any token on the smart

chain to have an availability to be swapped on a decentralized exchange, it

must have an available liquidity pool of tokens for swapping. The challenge

remains on how to properly incentivize users to keep such liquidity pools

maintained.

Recognizing this, developers have attempted to satisfy these conditions by

using various tokenomic structures with incentives for the user to supply

liquidity into the pools. An automatic liquidity acquisition can be featured

as an alternative solution compared against the traditional “farming

reward” structure. An automatic liquidity acquisition function where users

are offered rewards (via reflection) in lieu of traditional farming rewards.

These reflections would act to distribute tokens proportional to volume, and

could thus provide a more reasonable incentive for holding. Although

reflection and automatic liquidity acquisition may contribute to stability, an

inherent burn which can achieve token scarcity with a depreciating token

supply. The combination of these tokenomics seeks to eliminate the flaws of

various predecessors, while providing useful incentives for use case and

adoption. Effectively, any application that is added with these smart

contract functions could have the effect of amplifying STARDUST

tokenomics.