Ensuring Stability & Sustainability on Brr Protocol
We understand the importance of maintaining a stable platform for our users. To this end, we have implemented a unique approach to managing liquidity that is designed to reduce transaction costs and minimize bearish bias within the community. Unlike other protocols that rely on massive micro-sells triggered by compounding and reward claims, we manually remove a portion of the liquidity generated and sent to us through fees. We never directly sell any tokens, instead, we keep the ETH side of the transaction to fulfill our respective purposes. By managing liquidity manually, we are able to reduce transaction costs and minimize the impact of large automated sells on the trading chart.
The treasury is a critical component of the Brr Protocol, serving as the main asset used to generate real yield. Through strategic farming on different Arbitrum protocols, we are able to generate significant revenue that is then reinvested back into the Brr Protocol.
This approach promotes long-term sustainability by achieving self-dependency and generating revenue outside of the protocol itself. The real yield generated by the treasury is reinjected into the Brr Protocol in a variety of ways, including providing liquidity if needed or performing recurrent buybacks.
By utilizing the treasury in this way, we are able to ensure that the Brr Protocol remains a viable and sustainable platform for generating passive income and yield over the long term.
Since the rewards distributed are not being minted but are distributed from the pool, we actively monitor this pool to ensure that the emissions are not too high and that a proper balance is maintained between emissions and feeding the pool.
To ensure that the reward pool remains sustainable, a predetermined amount of tokens will be allocated to the pool in advance, with additional tokens being added on a regular basis. Each mint/upgrade of a Scammer NFT will feed the reward pool, as well as 2% of all buy/sell transactions on $BRR.
It is important to note that the reward pool is essentially composed of $BRR tokens, and therefore, there will be no selling pressure on the pool. Any taxes on $BRR tokens bought or sold will simply be transferred, and the pool will remain stable in size and value.
As we monitor the reward pool closely, we reserve the right to adjust the APR and remove parts of the LP on $BRR to ensure the pool remains sustainable over time. Our commitment to transparency and sustainability means that we will keep our users informed of any changes to the protocol or reward structure as they occur.