Liquidity Generation Event (LGE)
A Liquidity Generation Event (LGE) is an original concept designed to mint and distribute all 10,000 yENTITY tokens fairly.
The first Liquidity Generation Event lasted one week, in which contributors were able to supply BNB to the LGE smart contract. After collecting BNB throughout the week of the event, the smart contract used the 10,000 yENTITY and the total amount of BNB supplied throughout the week to create a yENTITY/BNB Pancakeswap liquidity pool. The liquidity created through the LGE is locked up and the LP tokens given out can not be redeemed for their underlying assets. The LGE participants received Liquidity Pool tokens in return of their BNB contributed to the LGE. Each transfer of yENTITY is charged with a 5% fee, of which 90% goes to the staked LP tokens and 10% to the developer fund.
An LGE uses a smart contract which collects a variety of tokens during a determined period. After the timer is over the contract uses the collected funds to create a new liquidity pool. Participants who contributed tokens to the LGE smart contract will receive LP tokens after the event is over. These tokens can be staked on the entity.capital/yentity website to receive rewards.
During the LGE, the smart contract collects and uses tokens in different ways to maintain its peg. It is designed to have a positive impact on yENTITY and its ecosystem. The example below demonstrates these mechanisms:
Contributing funds to an LGE gives participants the ability to receive discounted LP tokens. During this event the price per LP token does not scale. It is even for all contributors. After the event is over the price will scale along with the pool, meaning it will become increasingly expensive for each new minted LP token.