PLUG
Protocol Liquidity Utilization Gateway
PLUG is a first of its kind multi chain vault that actively participates in the market, injecting liquidity directly into the chart by providing LP, trade mining fees and purchasing POND ecosystem tokens directly. This strategy aims to reinforce the value of POND and, by extension, the overall stability and growth of the ecosystem.
The vault autonomously does the following:
- Periodically uses 50% of USDC trading fees to buy POND ecosystem tokens, introducing perpetual repurchasing pressure.
Trading fees can be generated on any network.
- Automatically attests weighted volume (functioning much like a veToken without the burdensome voting component) funding repurchases, leading to increased decentralization and improved user decision-making ability given more liquid and efficient markets.
If community is more actively creating volume on wPOND, the repurchasing automatically is directly towards that market. If the community is more actively creating volume on PORK, the repurchasing pressure is directed to that market.
New markets that are ecosystem adjustment can be added permissionlessly through auction. Auction fees are used in repurchasing. - Creates additional revenue through permissionless lending pools (on SAVE) further fueling repurchasing.
Update:
General production notes:
- Every 5 blocks, solver calculates route quotes between 100 USDC - 10,000 USDC
- The trend weighted target is always the token used in USDC quote pairing
- As long as there are no existing orders queued, the most profitable route, that is also below the deviation_bps gets pushed into the RFQ order-book (Jupiter or COW)
- If price exits liquidity window, or third party solver doesn't finalize, order is cancelled
- If there is extreme volatility and no routes surface, the deviation_bps will increase to max 500 (5%) in a weight average and cool down every 96 blocks
- Tokens are added to corresponding LP pools, with rebalances sending network token (ETH, SOL) accumulation back to the solver