The main reason why uP is set to outperform Pulsechain is perpetually increasing Buy&Burn. Perpetual Buy&Burn delivers value added version of collateralized buybacks - a proven approach within traditional finance brought over to Pulsechain within the uP ecosystem. uP ecosystem of smart contracts acts as a perpetual Benevolent Whale buyer that burns uP tokens.
Why Buy and Burns are good short term? Market buying spikes demand resulting in upward price movement of uP tokens, followed with forever burn to increase scarcity of limited supply of tokens.
To get the general overview of how uP is designed to outperform PLS long term, refer to the uP strategy below: uP leverages PLS via Liquid Loans. Liquid Loans protocol provides uP with zero-interest loans without a set schedule for repayment in the form of USDL to perform uP strategy, aligning motivations of the token community growth with the blockchain itself via collateralized buy and burns.
uP Token
uP sacrifice points were minted as ERC-20 on Ethereum prior to the launch of Pulsechain. uP had a sacrifise of about $695k turned into 7.3B PLS, $90k stables and about $5k misc. + 2.97B PLS in the NE wallet: total value while PLS sits at $0.0000657 is $769,739 dedicated to uP strategy.
uP token is a PRC-20 send-receive token with a limited supply of 21 million tokens. uP uses Liquid Loans to grow collateral position in PLS with yield-bearing positions in LOAN & USDL to produce greater budgets to buy and burn uP tokens in perpetuity.
Constant Buy Pressure on the token is good for the price overall! 🚀
Burning reduces the supply and makes uP token hyper-deflationary 🔥
What will happen to the price of uP tokens with this perpetual buy&burn smart contract machine?
The answer is in the name!
uP Strategy
60% - Stability Pool 40% - Vault
1. Vault Operation Cycle
Create Vault 1000% ICR loan, 5% fee.
Allocate USDL loan amount:
25% to Stability Pool.
12.5% to BuyBurn Pool.
62.5% swap for PLS to deposit into the vault to increase ICR.
Wait for the vault's ICR to reach 1050%.(PLS go up)
Take out an additional loan to drop the ICR back to 1000%.
Repeat the cycle. The cycle compounds in perpetuity as long as Pulsechain price goes up.
2. BuyBurn Pool Activity
Wait for incoming funds.
Use 50% to buy uP and burn uP.
Reserve 50% to buy uP when 1/2 ATH of PLS price. While waiting USDL goes to LL Stability Pool to cover operational costs
At 1/2 ATH of PLS price, use reserved funds to purchase and burn additional uP.
3. Stability Pool Strategy
All funds within the Stability Pool remain in the LL Stability Pool to accrue assets in a positive feedback loop:
PLS proceeds go to the internal exchange.
USDL, after deducting 5% fee, goes to the rewards pool.
The remaining balance is split in half:
50% goes back into the LL Stability Pool.
50% goes to the BnB Pool.
If price drops to 35% of ATH PLS:
If funds < 5000 USDL, do nothing.
If funds are between 5000 USDL and 100k USDL, allocate all funds.
If funds > 100k USDL, allocate 40% of funds.
Swap USDL for PLS on the market.
Allocate proceeds in a new vault using the vault's logic.
uP and to the X's