New Deflationary System

In Minswap, soon the fees for all transactions will accumulate 0.05% to the ADA-MIN pool, increasing the liquidity of the pool and the liquidity holders of said pool will increase their returns. This will be positive for the MIN token to increase its market cap.

Sabiendo lo anterior, propongo algo diferente, pero manteniendo y agregando lo anterior, y es usar el poder del interés compuesto para almacenar más valor tanto en MIN-ADA, e incluso en otros tokens que no son ni ADA ni MIN, esta propuesta puede ser extendido a todos los fondos de liquidez para hacer que todos los tokens sean deflacionarios. Pero primero hablaremos brevemente sobre el interés compuesto aplicado en mi propuesta para ver cómo se implementaría.

Los titulares de liquidez ganan el 0,3 % de las tarifas de MIN-ADA, cuanto mayor sea el volumen de operaciones diarias, mayor será la recompensa para los proveedores de liquidez, si la participación de un usuario es del 0,1 % y el volumen diario fue de $63 000, gano $0,189, supongamos que añadiste liquidez y tu peso en el pool es del 50%, si el volumen vuelve a ser $63.000 habrás ganado $94,5, now you will have $63.095

That being said, we will add compound interest to the liquidity holder who theoretically owns 0.1% = 64,000 worth of ADA in the MIN-ADA pool, assuming that daily volume provides liquidity providers with a constant 1% annual profit per 5, 10, 100, or 1,000 years of exaggerating, and no one backs out on this example.

The initial TVL was 64,000 ADA, in 10 years it would accumulate 70,696 value in ADA.This can be applied to all MIN swap pools.

No token is permanently removed from circulation in theory, by default the tokens will be in the smart contract pool, both tokens that are in the LP will be available forever to perform swap, but paying the fee that corresponds to the liquidity provider, in The previous example was 1%, but if it were 100%, 200% or 1000% in one day, there would be more tokens trapped in the smart contract. (WHAT IS BURNED OR WITHDRAWN FROM CIRCULATION IS THE LP TOKEN)

This would bring several benefits:
1-All liquidity pools would always have liquidity to carry out swaps

2-It is insurance for all token owners in case of crypto scams (LUNA, FTX as an example), or in case all liquidity holders decide to withdraw their coins.

3-It would add more value to all tokens, especially Cardano

A DeadWallet would be needed for this, and we would need to give said wallet LP tokens. I have a proposal that I will leave here but discuss it among all, if you like this proposal.

The proposals to send LP Tokens to the DeadWallet would be:

1-each time the tokens or pairs of an LP are unlinked, a minimum fee is charged, as if it were a SWAP, this increases the commitment of liquidity holders, that unlink fee would be 0.001%, if my liquidity was 1 Million ADA in the LP, 10 ADA would be blocked in the smart contract.
2-LP Donations, the community would see the DeadWallet and voluntarily contribute their own lp tokens.
3-SWAP fee, if 0.05% is for MIN-ADA holders, something similar, but to create LP and send it to the DeadWallet, that 0.3% fee would be allocated 0.01%
4-all of the above or what you propose

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Basically, my proposal consists of sending LP tokens to a non-custodial wallet, these LP tokens are the same ones that you use for farming, or the ones that you get for adding liquidity.

This has a purpose and it is to deflate the pairs with compound interest from the transactions. Those lp tokens are not recoverable but the tokens are. Of course, the only thing that will affect is the impact price. But when exchanging one currency for another, you are willing to leave a small commission for one or another token. The great advantage is that there is always liquidity in the pool.

in case of a massive sale of coins due to panic or taking profits. the pool would always have liquidity so that anyone can carry out swaps with the minimum possible impact price. It’s like insurance built by the community itself. An insurance that guarantees that there is always liquidity in the protocol.

Let’s say that the TVL of all MINSWAP is 1,000,000,000 and tomorrow it goes down to 100,000 because people go to another protocol. Minswap would lose liquidity and never grow if its users leave. but! if you accumulate a small profit in the TVL of each pool you will always have liquidity, that’s why I proposed a fee for withdrawing TVL from a pool. I proposed that it be 0.001% for each withdrawal, that it increase the commitment to block and if not, that it leave a part of its TVL in the protocol.

an example would be the following:

I deposit 1,000,000 in ADA-MIN 50/50, they give me 1,000,000 LP tokes that guarantee my ADA-MIN liquidity,

If I immediately withdraw my LP-ADA-MIN Token, I am charged 0.01% in LP-ADA-MIN=100, the value in ADA would be 100 ADA.

Suppose that my participation was 100% and I did not withdraw my LP tokens for 1 year, and the volume of that year of ADA-MIN was 1,000,000,000, the POOL opened accumulated 0.3%. 3,000,000 ADA
I now have 4,000,000 ADA in custody, and then I decide to retire. I withdraw my participation, but part of my LP tokens go to a non-custodial wallet, I would leave 400,000 ADA, again 0.01% for removing my commitment to the pool. The amount of LP-ADA-MIN remains the same 1,000,000. He sent the same 100 LP-ADA-MIN but now they have accumulated 400,000 ADA.

if no one adds liquidity nothing happens, the smart contract will always accumulate both tokens forever. For people to exchange.

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