Price Floor Technology
The NXD Protocol introduces a groundbreaking mechanism aimed at perpetually raising the price floor of NXD, underpinned by a combination of strategic token burning and the establishment of locked, immutable liquidity. This approach ensures a continuous elevation of the asset's minimum value, setting a new standard for how digital assets can sustain and grow their intrinsic worth.
Through these innovative measures, the NXD Protocol sets forth a blueprint for creating a robust, deflationary cryptocurrency ecosystem. Requirements of a Price Floor
In the following section, we provide an overview of the strategies within the NXD Protocol to perpetually increase the Floor Price. The following requirements need to be present to be able to improve the floor price in the UniV2 LP.
The fact that there is a fixed supply of the token
The fact that the contracts prevent removing liquidity from the LP, liquidity needs to be locked
The UniswapV2 rules governing the price of a UniswapV2 trading pair being the “k” formula
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