To support sustainable growth and price stability for the ELKE token, we’re using a dynamic liquidity addition strategy. This approach involves selling a small percentage of each purchase and then reinvesting the proceeds back into the liquidity pool. By doing this, we strengthen our liquidity pool, help stabilize the price of ELKE, and make it easier for community members to trade without significant price changes. Here’s how this approach works and why it benefits all holders.
Why is Liquidity Important for ELKE?
Liquidity allows ELKE to be traded easily without large fluctuations in price. The larger the liquidity pool, the more stable the price, allowing buyers to trade without major shifts. This stability attracts more investors and supports the long-term value of the token.
The 20% Liquidity Addition Strategy
Our strategy involves reinvesting 20% of each purchase back into the liquidity pool. Here’s a step-by-step look at how this approach works:
Purchase of ELKE: An investor buys 1 million ELKE.
Partial Sale: Automatically, 20% of the purchase (200,000 ELKE) is temporarily sold for BNB.
Adding to the Liquidity Pool: With the BNB gained (for example, around $5 USD worth), the equivalent 200,000 ELKE and the newly obtained BNB are added to the liquidity pool on PancakeSwap.
End Result: The liquidity pool grows by 200,000 ELKE, while maintaining a stable amount of BNB, strengthening and stabilizing the price for the long term.
Real-World Example on DEXTools
To see how this strategy plays out in real-time, let’s look at a recent example from our DEXTools transactions.
Recently, a user purchased 1,174,470 ELKE. Following our strategy, 200,000 ELKE—or 20% of the purchased amount—was automatically sold to provide funds for reinvestment. Using the BNB gained from this partial sale, we immediately reinvested another 200,000 ELKE back into the liquidity pool, as illustrated in the DEXTools image below.
Benefits of This Strategy
This approach has numerous advantages:
- Price Stability: By continually reinvesting into the pool, we maintain price stability, making the token less volatile.
- Improved Liquidity: The reinvestment strategy ensures there is sufficient liquidity to support larger trades, attracting more investors.
- Community Trust: Consistent liquidity management shows our commitment to creating a sustainable environment for ELKE holders.
Conclusion
The 20% liquidity reinvestment strategy ensures price stability and supports sustainable growth for the ELKE token. With every transaction, we’re strengthening the liquidity pool, making ELKE an attractive option for investors who value stability and long-term growth.
