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For the complete documentation index, see llms.txt. This page is also available as Markdown.

Treasury

1.75% of ALL Buys to The Treasury:

  • Automated oS/SWPX LP Position: The Treasury uses these funds (1.5% of ALL buys) to enter an automated liquidity pool position on SwapX, specifically oS/SWPX. This LP position earns yield and deepens SWPX liquidity.

Yield Utilization: The yield generated from this oS/SWPX LP position is then allocated to three purposes:

  1. Strengthen BRNX/SWPX Liquidity: Part of the yield is reinvested into the BRNX/SWPX liquidity pool

  2. Buy $BRNX: Another portion is used to purchase BRNX tokens on the open market, increasing BRNX’s price and reducing circulating supply if those tokens are held or burned.

  3. Future Bribes on SwapX: The remaining yield funds “bribes” on SwapX. These bribes incentivize governance voters to direct reward emissions toward BRNx/SWPx, amplifying LP incentives.

This setup creates a flywheel effect:

  • Treasury Growth: The 1.5% tax on buys steadily builds the Treasury’s $SWPX reserves.

  • Liquidity Reinforcement: By staking in wS/SWPX and reinvesting yield into BRNX/SWPX, the system strengthens liquidity for both tokens, making trading more efficient and attractive.

  • BRNX Demand: Buying BRNX with yield adds buying pressure, and supports its value while aligning with the Treasury’s goals (e.g., holding, redistributing, and burning).

  • Incentive Alignment: Bribes enhance voter participation, which in turn drives more rewards to LPs, encouraging further liquidity provision

0.25% of ALL buys get set aside for bribes:

This portion is issued as an incentive to encourage users to stake their veSWPx and vote to direct rewards toward the BRNX/SWPX pool. In return, voters receive a share of these "bribes" as a reward.

  • Incentivizing Voting and LP Rewards: By voting, users signal which pools should receive higher emissions of rewards (often in the form of native tokens like BRNX or SWPX). Liquidity providers in the BRNX/SWPX pool then earn boosted yields, funded partly by this 0.25% allocation, motivating more people to provide liquidity and stabilize the pool.

This mechanism aligns the interests of token buyers, voters, and liquidity providers, creating a self-reinforcing system: buying BRNX supports the pool, voting directs rewards to it, and LPs benefit from increased activity and incentives.

We chose Origin Sonic (oS) over $S for the Treasury liquidity pool because it prioritizes higher yields, liquidity, and additional rewards/multipliers for Sonic Points

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