6.3. Protocol Control Price

The founding team found that in all Metaverse and DeFi projects, the most common cause of project failure is that the price is artificially interfered with and completely out of control.

Due to the chip characteristics of LMG, most players hope that it has sufficient liquidity, and at the same time, they do not want its price fluctuation to rise or fall too fast in a short period of time. market intervention.

The goal of market intervention is to maintain the price of LMG at around 0.01, with a fluctuation of no more than 5%. If the automatic digital assets of the LMG vault cannot maintain the price fluctuation, the minting and destruction of LMG will be started.

The protocol will capture the weighted result of the moving average price and the real-time price over a period as the index price. If the current price rises too fast relative to the index price, the DAO treasury will directly sell LMG at a discount (the general discount range is 2%). between 10 and 10), so that incremental funds will not enter the secondary market but will directly enter the vault.

If it falls too fast, the opposite is true. The LMG vault protocol will directly call the DEX protocol and use the vault's own funds to buy LMG in the DEX for bottoming operations.

The vault protocol will also use the same principle to intervene in the price of the NFT secondary market.