Farms/Pools

Introduction

This document provides a detailed analysis of the liquidity, staking, emissions, price dynamics, and performance metrics of the CORNY token on a decentralized exchange (DEX). The goal is

Liquidity Farms and Pool Allocations

The CORNY ecosystem incorporates several liquidity farms, each contributing to overall market stability and trading depth. Based on the Inputs sheet, the distribution of liquidity across different trading pairs follows a structured allocation model:

Total Liquidity (Two-Sided): 82.95% of buy and sell fees contribute to liquidity, varying by sellback scenario:
- 0% Sellback: $44.27M
- 50% Sellback: $64.19M
- 200% Sellback: $84.11M

Liquidity Pair Distribution:

CORNY/BTCN: 50.00% of total liquidity, ensuring deep market depth for Bitcoin-native trades.
CORNY/CORN: 10.00%, supporting native ecosystem liquidity and intra-platform trading.
CORNY/KERNEL: 5.00%, facilitating specialized asset swaps within the ecosystem.
CORNY/ETH: 5.00%, bridging CORNY to Ethereum’s liquidity pools.
CORNY/USDC: 5.00%, providing a stablecoin-backed trading option to mitigate volatility.
CORNY/CLAY: 5.00%, an alternative trading pair supporting ecosystem expansion.
Other: 20.00%, diversified among additional assets to bolster liquidity resilience.

Initial Liquidity and Market Entry Conditions

The CORNY token’s market launch is modeled under three different liquidity scenarios:

Scenario 1: $44.27M Initial Sale Liquidity
Scenario 2: $64.19M Initial Sale Liquidity
Scenario 3: $84.11M Initial Sale Liquidity

These figures set the foundation for how much capital is available at launch, affecting trading depth, price stability, and slippage. The Daily Volume Multiplier, which estimates trading activity, is assumed to range from 0.2x (Scenario 1) to 0.4x (Scenario 3), impacting the velocity of trades and token distribution.

Staking Dynamics and Supply Growth

The staking percentage remains fixed at 60% across all scenarios, ensuring that a significant portion of circulating supply is locked, influencing both supply constraints and token rewards. The total Circulating Supply evolves as follows:

Year 0: 310M CORNY
Year 1: 484.6M CORNY
Year 2: 436M CORNY
Year 3: 400.7M CORNY

While there is an initial increase due to emissions, the supply begins to contract over time, influenced by burning mechanisms and staking behavior.

Emission and Inflation Mechanics

Annual token emissions are structured as a fixed 62.5M CORNY per year, directly feeding into staking and liquidity pools:

Farming Allocation: Receives the majority of emissions.
Liquidity Pools: Receives a minor share for incentivized rewards.

The inflation rate follows a distinct pattern:

Year 0: 21.9% (inflationary due to high emissions)
Year 1: -5.2% (shift towards deflation as burns increase)
Year 2: -4.2%
Year 3: -3.5%

This transition from inflation to deflation suggests that early-stage price suppression from emissions is mitigated over time by token burns.

Liquidity Growth and Trading Volume

The Total Value Locked (TVL) and Annual Trading Volume are key indicators of market adoption:

TVL Growth:
- Year 0: $129M
- Year 1: $187.8M
- Year 2: $265.9M
- Year 3: $278.5M
Trading Volume Growth:
- Year 0: $12.47B
- Year 1: $16.67B
- Year 2: $23.06B
- Year 3: $24.21B

Increasing TVL indicates growing trust and participation in the ecosystem, while higher trading volume suggests improved liquidity and market efficiency.

Price Action and Market Impact

The projected CORNY token price reflects both emissions and deflationary pressures:

Year 0: $0.4001
Year 1: $0.3753 (slight dip due to early-stage emissions)
Year 2: $0.5896 (price recovery as supply contracts)
Year 3: $0.6711 (long-term appreciation due to sustained burns)

This pattern highlights the importance of balancing token emissions with liquidity inflows and staking behaviors to maintain price stability.

Net Token Flows and Buyback Mechanisms

Net CORNY Bought for Staking:
- Year 0: 66.67M (accumulation phase)
- Year 1: 89.35M
- Year 2: -77.69M (distribution phase begins)
- Year 3: -56.49M (continued distribution)
Net Buy Volume Impact: As staking redemptions increase, there is a net sell pressure in later years, counteracted by burns and trading demand.

Conclusion: Key Takeaways

Liquidity and Staking Stability: The model ensures that a substantial portion of tokens remain locked, reducing immediate sell pressure.
Emission Strategy: Early inflation is controlled by staking incentives and later offset by burns, creating a long-term deflationary trend.
Market Participation Growth: Increasing TVL and trading volume reflect growing confidence in the ecosystem.
Price Recovery Potential: After an initial dip, price action suggests a steady uptrend due to improved liquidity and controlled supply.
Staking and Distribution Shift: While staking is strong initially, later years see increased token distribution, influencing overall market behavior.