In our last post we introduced the concept of scalable burning. The idea is to build up a liquidity position in the LEN:LENM pool in order to earn CTPSB tokens as dividends in order to burn them. The difference to the previous mechanisme is that in the past the burning represented a decreasing value and with this new system, we would actually increase the burn value from week to week.
After some calculations, I realized that we would need to wait quite a long time until we manage to build something that really has an impact on the value of the token. That's why, we used some free funds to kickstart the process. Thanks to that, we have manage to get more than 3% of the liquidity in the pool already.
This will generate about 0.20$ worth of dividend each week. Among these rewards, there will be about 0.14 CTPSB generated each week to be burnt. So we are already about half way of the 0.3 CTPSB that we are burning so far. For the coming weeks, we will expand the position to reach something around 7% of the pool. Like that we would be close to generate the 0.3 CTPSB that we burnt previous to this implementation.
Once this point is reached. The income that the account generates will continue to build the liquidity position and all earned CTPSB will be burnt. With this process, we will continuously increase the weekly value of the tokens burnt and thereby, we will increase the value of CTPSB.
The numbers of this week
We had a very nice growth last week. The token value increased by 0.01 Hive over one week and the APR for the last two weeks is back above 16%.
Learn more about the CTP Swarm Booster: