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Expert: IPOL(Integrated Protocol Owned Liquidity)

Expert: IPOL(Integrated Protocol Owned Liquidity)

Typically, a new project rewards liquidity providers with more of their tokens to increase the returns beyond the transaction fees you would earn in decentralized exchanges. This concept is called “renting liquidity”. Then, someone would clone the project, increase the number of tokens given pulling the liquidity to the cloned project. This crashed the original project.
 
Systems like Olympus DAO (and countless clones) have solved this liquidity problem by restructuring the incentives so that the protocol owns the liquidity. High yield seekers cannot run off with liquidity at the next "higher returns" project. Essentially, you get a bonus in tokens on a vesting schedule for selling in to the liquidity pool. This liquidity is then owned by the protocol. It is similar to a bond and called POL’s (Protocol Owned Liquidity).
 
BankX has a similar system where the protocol owns the liquidity that is added by offering a bonus in BankX tokens and the XSD stablecoin for adding collateral to our liquidity pools. BankX stablecoin minters and stakers can be assured that there will be a market for BankX tokens and XSD.
 
BankX is the first to introduce the concept of an Integrated Protocol Owned Liquidity system. Because the BankX protocol owns the liquidity pools, it can do things to ensure sound economic policy over projects that “rent liquidity”. The IPOL system is the last line of defense to maintain an Always Net Deflationary (A.N.D.) token economy. The system does 2 things to get back to a deflationary environment when the system has identified the BankX token as “inflationary” (inflation is greater than staking):
 
  1. A percentage of newly sold BankX tokens into the Liquidity Pool (ETH/BNB vs. BankX only) are burned by the system.
  2. If #1 doesn’t work, after period of time, a percentage of the total BankX tokens in the Liquidity Pool are burned each week until the system reaches a net deflationary state.
 
Projects like SafeMoon “tax” token owners when they sell. BankX takes a different approach. Sellers of the BankX token capture the full market value price at the time they sell while the IPOL system burns tokens, if needed, to ensure the system remains net deflationary (A.N.D).
 
Furthermore, BankX does not charge transaction fees in our liquidity pools. Buyers and sellers of XSD and BankX are drawn to our liquidity pools due to no fees, concentrating liquidity in our decentralized liquidity pools. Because no fees are earned, there is no incentive for liquidity providers to add liquidity to pools that the BankX protocol doesn’t own. The only incentive for the market is to sell liquidity ensuring a 100% Protocol Owned Liquidity Pool structure.