Our Approach
A Smarter Way to Build Value
In decentralized finance (DeFi), liquidity is the lifeblood of any project. But many platforms waste this precious resource by burning liquidity tokens as soon as a project lists on Uniswap or similar exchanges. At Flaunt, we believe there’s a better way—a smarter way that benefits the entire community.
We’ve introduced a game-changing liquidity management system that ensures liquidity stays productive, supporting the community while reducing waste from inactive tokens.
What’s Wrong with Burning Liquidity?
Most platforms burn liquidity tokens once a project fills the bonding curve and lists on a dex. It sounds good on paper, but here’s the issue:
Burned liquidity is gone forever. Even if the project fails or becomes inactive, that liquidity can never be recovered.
Wasted resources. Valuable ETH is permanently locked away, never to be used again, even for tokens that don’t gain any traction.
Instead of following this outdated approach, Flaunt has a dynamic model that maximizes liquidity for active projects and reclaims liquidity from dead tokens to fuel our ecosystem.
What Happens to Liquidity?
Burned and gone forever—never to be used again
Kept safe and only burned when a token proves its worth
When is Liquidity Burned?
Right after a token hits the market, whether it succeeds or not
Only for tokens that reach a $1M market cap—after they’ve shown real value
Dead Token Liquidity
Lost forever. If a token dies, its liquidity is gone too
Reclaimed and used to buy $Flaunt tokens from the market, boosting community rewards
Who Benefits?
No one. Burned liquidity helps no one after it’s gone
Stakers, users, and holders—because we turn reclaimed liquidity into rewards
Resource Usage
Wasted. Once burned, that liquidity is locked away forever
Maximized. We turn idle liquidity into buybacks and community rewards
Community Impact
Minimal. There are no ongoing rewards after burning
Continuous. Reclaimed liquidity boosts community rewards and helps holders recover value
Our Smarter Approach to Liquidity Management
1. Burning Liquidity Only for Successful Tokens
We only burn liquidity for tokens that reach a $1 million market cap. Why? Because those tokens have proven their value in the market. Until they hit that milestone, their liquidity tokens remain locked in our Liquidity Manager for security and transparency.
This ensures we’re not wasting valuable liquidity on projects that don’t take off.
2. Reclaiming Liquidity from Dead Tokens
If a token shows no trading activity for 7 consecutive days and its Uniswap liquidity pool holds less than 3.26 ETH, we consider it a dead token. Instead of letting that idle liquidity sit there doing nothing, we remove it and put it to better use:
100% of reclaimed liquidity is used to buy $Flaunt tokens from the market.
These $Flaunt tokens are then distributed to the community:
65% to stakers
30% to the platform users
5% to holders of the dead token
This creates a win-win situation. Stakers benefit from continuous rewards, and holders of inactive tokens get a second chance to recover some value.
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