https://lightdefi.org/
Blockchain technology is one of the most promising that exists today, ranging from the creation and commercialization of cryptocurrencies to the use of smart contracts. It is no coincidence that in recent years the cryptoactive market has been attracting considerable interest, manifesting itself in innovative solutions for electronic payments and digital storage of values, as it has a decentralized, secure, fast, and low (or none) operating format cost of transactions. The cryptocurrency market has already surpassed the market value of icons of the digital economy, such as Facebook and Amazon, which has exceeded US$ 600 billion at the end of 2017. It is now possible to register, make payments, and even raise funds to companies using this technology through the expansion achieved. However, unnecessary uncertainties, generated above all by the nancial impact of its inherent volatility, end up harming the attractiveness of the cryptocurrency market. To face this, which proves to be one of the main drawbacks of the cryptoactive market, the Light DeFi token brought an intrinsic system that seeks to stabilize its volatility. The Light DeFi token is a unique cryptoactive on the market, conceived from the e orts and experience of a group of supporters and enthusiasts of various projects in the crypto world, both on Binance Smart Chain (BSC) and other platforms para inglês
The phrase "para inglês" translates from Portuguese to "to English". The user's prompt is already in English, so a direct translation is not required. However, the query references the Light DeFi token's intrinsic system for stabilizing volatility, which can be further explained based on publicly available information.
Blockchain smart contracts: Applications, challenges, and ...
Cryptocurrency Explained With Pros and Cons for Investment
Blockchain Facts: What Is It, How It Works, and How It Can ...
Blockchain smart contracts: Applications, challenges, and ...
Blockchain Facts: What Is It, How It Works, and How It Can ...
The Light DeFi token (LdF or LIGHT) uses a deflationary system with an automatic buyback-and-burn mechanism to manage volatility. A portion of the fee from every transaction is used to automatically repurchase tokens from the open market and remove them permanently from circulation, increasing the value of the remaining tokens.
How Light DeFi's intrinsic system stabilizes volatility
The Light DeFi token, a BEP-20 token on the Binance Smart Chain, aims to combat the high volatility inherent in many cryptoassets by automatically manipulating its own supply.
Here is a breakdown of the system:
Transaction tax: Every transaction involving the Light DeFi token is subject to a tax.
Automatic buyback and burn: A portion of the transaction tax is automatically used to purchase LIGHT tokens from the market. These repurchased tokens are then permanently removed from circulation, a process known as "burning."
Deflationary pressure: By consistently reducing the token's total supply, the system creates upward price pressure, which helps to counteract selling pressure during market downturns. This deflationary model aims to increase the value of the remaining tokens over time.
Reflection for token holders: A portion of the transaction tax is also redistributed to token holders as a reward. This offers a passive income stream to investors and incentivizes them to hold their tokens long-term, which further reduces market sell pressure.
Liquidity pool reinforcement: Some of the collected fees are used to strengthen the token's liquidity pool. Higher liquidity reduces volatility and improves the stability of the token's price by making it easier for traders to enter and exit positions without causing significant price swings.
Benefits and goals of the system
Beyond mitigating volatility, the Light DeFi system also serves the project's broader mission of supporting renewable energy.
Renewable energy funding: The Light DeFi token is specifically designed to finance the construction of photovoltaic solar power plants.
Financial compensation: The compensation earned from these solar power plants is also used to reward token holders, creating a self-sustaining ecosystem that links a real-world asset to the token's value.