↪️Deflationary Mechanism

We've created a robust deflationary mechanism aiming to decrease the total supply and maintain token value.

Retrieval & Extinguish

Drawing a portion from Lancelot DEX's earned revenue, we undertake routine market operations to retrieve $LAKE tokens. These procured tokens are consequently extinguished (burned), triggering a continuous, upward influencing market force on the $LAKE tokens.

Conversion of xLAKE to $LAKE

Deflationary pressure is also mounted through the redemption mechanism of our vesting token, xLAKE. If a user opts to convert their xLAKE to $LAKE before the conclusion of the maximum vesting period, the conversion ratio won't be 1:1 but will drop to as low as 1:0.5. The $LAKE tokens surplus to the redemption are automatically incinerated.

xLAKE Reassignment

During the reassignment of xLAKE from a given Protocol, a nominal reassignment fee, generally 0.5%, is applied. This fee can vary per contract and can be modulated in alignment with the ecosystem requirements. Upon applying the fee, the respective $LAKE tokens are instantaneously liquidated.

The successful merger of these distinct deflation-oriented strategies enables Lancelot DEX to maintain a positive supply-demand equilibrium for $LAKE tokens and support a robust, long-term appreciation of their market value.