⚖️UniFi Auto-Liquidity Engine (UALE)

The on-going liquidity provider

Market Liquidity is of utmost importance and plays a vital role in allowing the buy & sell of $UNF tokens on Uniswap.

In layman's terms, think of Liquidity as a big pool of money that is split 50/50 between $UNF tokens vs $ETH. There is a conversion ratio that is set to the amount of $UNF you can get with ETH, for example: 1 ETH = 750 UNF. When somebody buys $UNF, the price per $UNF will go up, and the ratio above will also change at the same time to account for this. The same goes in the opposite direction for sells. Liquidity allows for anybody to buy & sell their UNF/ETH at any time; however, the less money/liquidity there is in the pool, the worse price you get. Our UniFi Auto-Liquidity Engine (UALE) adds more liquidity to that pool by itself, therefore solving that issue.

Here is how the UniFi Auto-Liquidity Engine (UALE) works:

Every 48 hours, our UniFi Auto-Liquidity Engine (UALE) will inject automatic liquidity into the market. On each buy or sell order, there is a 4% tax fee that automatically gets stored into an Auto-LP wallet. Built into our protocol's smart contract is the mechanism which smartly takes 50% of the amount of UNF stored in the wallet and will automatically buy ETH at the current market price.

The remaining 50% of UNF in the Auto-LP wallet will be used for the UNF side of liquidity, therefore giving an equal 50/50 weighting of UNF/ETH which will then be automatically added as new, additional liquidity into the market pair and raising the amount of liquidity in the pool.

The UALE will do this every 48 hours by adding more and more liquidity to the pool, allowing $UNF token holders to easily sell their tokens at any time with little to no market slippage. It will also aid in maintaining protocol stability to make sure the APY is upheld for the entire life of UniFi.