Absorber — a game-changing innovative and experimental DeFi protocol
Important things to know about how $ABS works :
1. Because the protocol core function does not primarily use any staking contracts, there is no potential for it to be bugged or exploited.
2. The protocol does not allow anyone — even its owner — to send any of the smart contract’s tokens out because the function simply does not exist.
3. The protocol automatically distributes rewards to you without you needing to pay any gas fees to claim them.
4. By using the Passive Yield Farming function only, there will be no impermanent losses because you do not need to add liquidity with the two different tokens that can fluctuate in price to earn yield.
5. The Absorber is deflationary with an absorption mechanism that gives it an ever-increasing price floor while removing tokens from the circulating supply. This means the perpetually rising price floor will always support your tokens’ value.
When you buy, sell, and hold $ABS, several things happen. Let’s break this down,
· A buy incurs an absorption of 1%, and the entire portion of this is re-allocated to every holder of $ABS (“the yield”). It’s like an airdrop, but it’s not because it costs NO GAS for you to collect — quite literally, it just appears as an increase on your balance. That means by just holding $ABS, you’re able to passively collect the yield.
· A sell incurs an absorption of 3%, and the
* 1% will be sent to all the token holders automatically (that means they can keep $ABS on their wallet, and see their ABS increasing with every transaction).
* 2% will be absorbed by the smart-contract and almost all of it will be sent back to liquidity (LP) on Pancake swap(https://pancakeswap.finance/) and locked forever of which, increases the floor price while it decreases the circulating supply overtime, a tiny fraction of the 2%, which works under the “0x000…Dead” address gravity weight, will be burned forever. This also contributes to the decreasing of the supply.
The consequences of adding/removing liquidity, claiming rewards or compounding, will cost more gas fees. This means you will receive around 3% less than what you supposed to be receiving. These taxes on every transaction incentivizes holders whereas this promotes holding more than selling.
Moreover, the above-mentioned functions offer a very strong ever-increasing fundamental price and with the Passive Yield Farming, there will be continuously increase of $ABS in holder’s wallets for every transactions which makes them want to stay in for the long term and hold $ABS. Since a tiny fraction of the supply is burnt, we estimate that in a 24-year period, the total supply of 1,000,000 will decrease to 750,000 ABS or less, we will vote that too in the future.
In addition, all of the Pools from app.absorber.finance will auto compound(even if you have unclaimed rewards). There is no need to un-stake or remove liquidity, when you claim, you will receive 1% less as dictated by the smart-contract, but by staying in the pools, you will receive 1% more from the PYF function.
For the people who have not sent their ERC20 tokens for migration, the Swap will be in 1 : 0.99 Ratio, and will be able to migrate anytime without any other consequences if they are eligible (having been holding their erc20 ABS before migration occurred).
Long Live! to a Fair and Balanced Ecosystem, Will that be us? We shall see. Time will filter gold from the dust….