3.14. Automated Diversification Across Exchanges
The principle described in the previous chapter (geometric progression of coin distribution) will be implemented through an automated bot called LAM (LimitAskMaker). This bot will be integrated via API keys with various DEX platforms operating under the "order book" model. It will automatically place limit sell orders for coins based on the parameters and formulas outlined in Chapter 3.13. Such automation minimizes human involvement, ensuring uninterrupted and predictable system performance within the framework of the defined coin distribution strategy. This mechanism resembles mining, where all actions strictly follow an algorithm; however, unlike traditional mining, resources are directed toward internal project development rather than environmental degradation.
Important!
The LimitAskMaker wallet is excluded from the "daily smart burning mechanism" for coins.
As the project grows and develops, this mechanism will be diversified across multiple DEX platforms, instead of relying on a single exchange. Regardless of how reliable an exchange may seem, there is always a risk of technical failures, lags, delays, or outages. Thanks to this principle, DeflationCoin can be bought or sold at any time, regardless of technical issues on one of the exchanges.
As diversification across exchanges expands, a DEX aggregator will be developed to automatically find the best prices for buying and selling coins. This mechanism will eliminate the need for users to manually check multiple DEX platforms for transactions. The DEX aggregator will optimize trading operations, improving efficiency and ease of use. This tool will be integrated into the online node (detailed in Chapter 3.15) and made available to all Deflation Coin holders.
Important!
As part of DeflationCoin’s development, the team implements a strategic liquidity withdrawal mechanism from the liquidity pool to finance the project’s further growth. This mechanism accelerates ecosystem expansion, attracts new participants, and creates a positive price trend, ultimately benefiting all investors and encouraging additional liquidity inflows amid price growth.
Centralized exchanges (CEX) are not a listing priority for Deflation Coin due to their high vulnerability to fraud and bankruptcies. The history of the crypto market is full of such cases, with the most notable being:
FTX (2022): $8 billion
Thodex (2021): $2 billion
PlusToken (2019): $2 billion
Mt. Gox (2014): $450 million
Despite the popularity of centralized platforms, they carry significant risks, including: management abuse, hacking incidents, non-transparent fund storage, and regulatory restrictions. Given these threats and the specifics of Deflation Coin tokenomics, the developers do not aim for CEX listings during the early stages of the project.
In the medium term, as part of the Deflationary Ecosystem, a proprietary centralized exchange (CEX) will be created, serving as an exclusive listing platform. This decision will emphasize the project’s uniqueness and draw audience focus to its own platform. A potential method for listing on other CEX platforms could involve API integration with the DEX aggregator, where all limit orders across various DEX platforms will be consolidated.
All necessary functionality for position management (buying, selling, staking, and other operations) will be implemented through the online node (see Chapter 3.15 for details). This service ensures that any sales will not trigger a sudden price drop, as often happens with Bitcoin. Coins will be sold simultaneously across multiple exchanges, allowing for efficient liquidity distribution and optimal pricing for investors.
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