# Liquidity Policy

Liquidity is expanded **algorithmically in proportion to real demand**.

Let:

* L<sub>t</sub>​ = current liquidity depth
* V<sub>t</sub>= 30-day DEX trading volume
* β,γ = tuning parameters

#### Target liquidity level

L<sub>t</sub><sup>\*</sup>=β×`√`t​​

#### Minted liquidity incentives

Mint<sub>t</sub><sup>LP</sup>=min⁡(γ×max⁡(0, L<sub>t</sub><sup>∗</sup>−L<sub>t</sub>), 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


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