Dynamic Buy Back System

The GND protocol employs a dynamic buy-back mechanism to maintain the health of the protocol and ensure a stable and sustainable APR for its users. Here are some key features of the dynamic buy-back mechanism:

Buy-Back Pool:

A dynamic 40-60% of the total fees generated by the protocol will go to the buy-back pool. This pool will be used to buy back GND tokens from the market.

Constant Buy-Back Amount:

There will be a constant buy-back amount weekly, which will depend on the fees generated by the protocol over time. This means that the buy-backs will happen regardless of the price of GND tokens.

Buy-Backs During Periods of Low Demand:

The rest of the buy-back funds will be used to buy back GND tokens during periods of low demand or sharp price decline. This is done to ensure that the protocol buys back tokens at good valuations and maintains the health of the APR during difficult times. This helps to maintain TVL (total value locked) in the protocol.

Concentrated Liquidity During High Demand:

During periods of high demand, the buy-back funds will be used to provide concentrated liquidity to earn more fees for the protocol. This liquidity will be used to farm xGND and GND tokens, which can be burned in addition to the buy-backs. This dynamic use of buy-back funds is designed to ensure the best possible health of the protocol.

Overall:

The dynamic buy-back mechanism of the GND protocol is designed to provide a stable and sustainable APR for its users. It employs a combination of constant and periodical buy-backs to maintain the health of the protocol during good and difficult times. By providing concentrated liquidity during periods of high demand, the protocol can earn more fees and promote the growth of the ecosystem.