OctaDahlia: A UniswapV2 Token that Never Goes Down
Looks like dips are truly illegal in this new paradigm, never let your memes be dreams, kids.
Rootkit set out with a mission to disrupt finance; to illuminate through the medium of DeFi that it’s possible to help everyone benefit from financial markets.
We’re pleased to announce the next evolution of our UpOnly ecosystem: OctaDahlia; a Uniswap friendly showcase of the upOnly mechanic powering our pioneer token: Octalily and The Garden Of Infinite Love.
Please read our WhitePaper at octadahlia.finance for a more detailed explanation of how the upOnly mechanic works. The paper goes into extensive detail and is not purely focused on the tech, instead touching on the mission behind why we do what we do here at Rootkit.
To paraphrase: we use a new pricing model that compares the liquidity of token X against the circulating supply of token Y. In a standard Uniswap pair the reserves of Tokens A & B are compared to each other to get the current price. To achieve the pricing model on Uniswap and prevent our pool price from changing, we mint and burn directly from the pair to adjust the price of it moves too far out of a predictable range. If the pool price and the floor price are within a close range but still different, we use a dynamic burn rate to adjust the cost up or down to the correct, floor price.
The effect of this mechanic is to trap the price at the floor.
Transfers have a large burn so by selling or buying tokens the burn causes the floor to slowly rise — increasing the reserves more than the circulating tokens. Since our pricing model compares the reserves against the circulating supply, this causes a slow, predictable increase in price for everyone.