CORE Vault
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CORE Vault

LGE#2 Final Day: What happens Next?

On the 17th of October, CORE’s second Liquidity Generation Event launched, with the goal of adding wrapped Bitcoin to the ecosystem. Within the first two hours, the contract gathered over $1.5 Million USD, resulting in 72.3 wrapped Bitcoin and over 110 CORE entering the smart contract.
At the time of writing, an additional $3.1 Million USD was contributed bringing the total allocation to over $5.1 Million USD.

A Balancing Act ⚖️

The contract constantly balances the contribution received to maintain the peg between CORE and wBTC. If it receives too much wrapped Bitcoin, it counters the off balance by using the excess to purchase CORE. In the last 5 days since launch, it purchased a total of 221.56 CORE ($1,422,738.00) bringing additional price movements to CORE traders and generating volume. The chart below displays one of these events where the contract bought CORE to maintain the peg.

24 Hours to go 🕰️

The recent Bitcoin rally is creating new volume and attracting new Bitcoin contributions. If history repeats itself, we can expect an even bigger increase in allocations towards the end of the event. A successful second Liquidity Generation Event which is tapping into the second biggest liquidity pool on Uniswap is not only the corner stone for our ecosystem but also enables arbitrage and matures our protocol further. After the event is over contributors will receive their LP tokens which they can stake on to collect pool rewards.

Enhancing LP tokens ✔️

Multiple ways of earning rewards for our LP token holders will establish longevity. While the fee on transfer is imperative for our deflationary token, it also creates the possibility to improve rewards by adding additional features to the ecosystem which encourage an increase in volume. Currently the main driver of APY is volume through speculative trading. The additional liquidity pool grows the ecosystem, allowing arbitrage and profiting from the recent Bitcoin rally.

The Importance of a Stable Coin 💲

Our next Liquidity Generation Event will introduce CORE to a stable coin. We believe that taking arbitrage of everything against fiat can be a powerful component. Growing more sides to our arbitrage system while giving the CORE community the ability to use a stable coin will benefit CORE and our LP token holders. While Ethereum and Bitcoin are playing an important role at raising the price floor during upward trends, establishing a stable coin pool will lower the bottom risk.

When looking at the Uniswap Protocol Analytics one quickly realizes the magnitude that stable coins have on Uniswap. There is a total of $800 Million USD in stable coins signifying the opportunity at hand.

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