bnt will help pools decrease the deficit? How does the amount of ETH increase in the pool by burning the bnt token?
Simple, if BNT price goes up due to buyback and burn then this means that an outsider will add TKN to remove BNT from the pool. As they add TKN to the pool, then it will decrease any deficits in the pool naturally. Essentially, BNT outperforming tokens it is paired with is good for all LPs.
Our pools are standard 50:50 amm pools If BNT price goes up, arbs will sell TKN for BNT for free money , adding TKN to pools
Deficits and surpluses are created by disparity in the ratio of supply. When BNT supply is reduced, or TKN supply is added, it reduces the deficit for the pool. Make sense?
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