The “Stability Pool” may be referred to as the “Collateral Pool” and vice versa.
Smart contracts are evolving. Not only have smart contracts been developed to mirror traditional finance vehicles like the Certificate of Deposit, but now Genius Smart Financial Contract is introducing an innovative feature that aims to be the most novel thing in crypto right now! The in-contract liquidity pool will function as a pump to the token’s open market price, while at the same time, offering sellers zero-slippage and protection from MEV bots! As a novel approach to tokenomics, its algorithms have some deep game-theory that is difficult to comprehend at first, but once a user catches on to the potential here, something truly amazing is bound to happen. It’s in the code. A safe, immutable, trust-less, and mathematical way to buy and sell $GENI, but instead of large sellers dumping the price of the token, a valuable arbitrage opportunity is created instead.
What is the Genius Stability Pool?
The Genius Stability Pool is the first line of defense to absorb large liquidations and create continuous buying pressure on the Open-Market. Through the use of different algorithms, namely the Issue Rate, the Issue Daily Decay, and the Issue Pump, the Genius Smart Financial Contract responds to market conditions, incentivizing users to purchase Genius tokens from the Open-Market and sell to the Stability Pool.
Why Deposit to the Stability Pool?
The primary reason someone might deposit to the Stability Pool is to simply acquire an Advanced Genius Miner at a discount.
Since the Stability Pool is a fundamental piece of the Genius infrastructure, it’s important to ensure that miners are properly incentivized by the protocol. To do this, Genius distributes mining rewards incentivizing end-users to deposit collateral and by steadily increasing the contract’s “offer price” of Genius keeping settlement fees in the Stability Pool itself.
All-in-all, Stability Providers are volunteering to give up their collateral assets for passive income exposure in the form of an advanced mining rewards. By doing so, this in-contract function ensures positive price movement while offering zero-slippage for large sellers.
Things to Keep in Mind
When the public settles debt for the pool, this settlement action will proportionally lower the debt owed by all Genius Collateral Miners that have not ended.
It is possible that at the end of a Genius Miner’s Promise Period, the Genius Miner may not owe any debt and will be able to end their mining commitment and receive the entire borrowed principal.
For clarity, even if the public settles the debt, every Collateral Miner remains in the full control of the owner; ownership of the miner is never transferred as a result of debt settlement.
In summary, the Stability Pool is another exciting feature newly announced on the Genius dApp & Contract. It aims to provide an in-contract liquidity pool of fluctuating $GENI ratios to stable coins (DAI) and native tokens for the purposes of creating an alternative private liquidity market, drive attention, and encourage the upward momentum of price over time.
We believe this will greatly drive adoption, and definitely drive attention — as there will always be a secondary active market for people to continually be looking at the dApp and contract for arbitrage opportunities.