A typical structure for funding project operations from tokens is to collect a percentage of traded tokens and periodically swap those tokens in the ETH pair.
The variables associated with this activity are:
- Percent of swap transaction tokens collected on buys and sells
- The token balance threshold at which to swap tokens into ETH
- The maximum swap transaction size (to limit extreme downward price action and maximize token return).
- Allocation of swapped ETH: a. Collected for operations b. Buy back and burn c. Buy back and add liquidity
All of these settings will be dynamic and modifiable to affect the allocations of capital throughout the ecosystem.
Advanced Trading and Revenues
There will be a complex interplay between the transfer of funds between:
- The Lending Pool
- The staked (pegged) ETH token
- The “constellation” token liquidity sink
- The reward token
- The dao token
At various moments money will flow between the Lending Pool, the constellation tokens, and the staked ETH token, and opportunistic traders may find swing trading or arbitrage trading profitable. This swing trading will drive tokens and fees back into the rest of the ecosystem and provide a solid financial vehicle for speculation on future growth.
This kind of trading is intended for advanced traders. The full breadth of strategies this ecosystem will support are not known apriori and will be discovered.
