Liquidity Policy

Liquidity is expanded algorithmically in proportion to real demand.

Let:

• L_t​ = current liquidity depth

• V_t= 30-day DEX trading volume

• β,γ = tuning parameters

Target liquidity level

L_t^*=β×√t​​

Minted liquidity incentives

Mint_t^LP=min⁡(γ×max⁡(0, L_t^∗−L_t), LP_cap_remaining)

This framework ensures:

• liquidity increases only when justified by volume

• incentives remain within the 20% allocation cap

• mercenary liquidity mining cannot drain the system