Hello Glazers today I am going to be talking a bit about a project you may have heard whispers in the wind about... A mysterious DeFi primitive coming to Base called @taurusfinance and a very special partnership with $DONUT! ๐๐๐๐๐๐ Ofc its from my fav mootards on the chain @bullas Lets explore.... Most tokens have no intrinsic floor, meaning when the hype dies, or flywheel slows, the price collapses... Taurus is attempting to solve this with their primitive dual-pool AMM that creates a mathematically provable price floor that can only move in one direction - up and to the right. ๐๐๐๐๐๐ Here is a breakdown of the mechanics as I understand them so far (please don't quote me on any of this I literally cannot read). Taurus separates liquidity into two distinct buckets: -FSL (Floor Supporting Liquidity): This is the "vault." It contains the USDC backing every AMB token's redemption value. -PSL (Price Supporting Liquidity): This is the "engine." It handles market trades above the floor and absorbs volatility. By separating these, the protocol ensures that market speculation in the PSL never compromises the hard backing in the FSL. -The Sell Tax: Every time someone sells AMB, a tax is redirected to the liquidity pools. -Burn Mechanics: When tokens are sold or redeemed, they are burned. This reduces the supply while the FSL remains protected or grows, forcing the floor price higher over time. -The Ratio Trigger: Once the speculative pool (PSL) reaches a certain size relative to the floor (FSL), the protocol automatically moves funds into the FSL, locking in a new, higher minimum price permanently. ๐๐๐๐๐๐ This is where the utility gets interesting. Because the floor price is mathematically guaranteed never to drop, Taurus allows holders to borrow USDC against their AMB. Remember the OG gumball borrowing technology (of course you don't)... Since the collateral value cannot decrease: -There is zero liquidation risk. -There are no margin calls. -Borrowing carries zero interest. Holders can essentially extract the USDC value of their tokens for other uses while keeping their full exposure to the market upside of AMB. ๐๐๐๐๐๐ The project treasury uses it's own token holdings to borrow against the rising floor to fund ecosystem growth and buy-backs. This creates a feedback loop: a higher floor leads to more treasury power, which leads to more growth, which further raises the floor. The future plan is for the AMM to integrate other assets and bring the dual-pool mechanics for multiple token pairs. ๐๐๐๐๐๐ Partnership with Donut ๐ฉ: Taurus will be allocating a portion of staking reward tokens specifically for DonutDAO, vested over a set period of time. This partnership aligns Taurus' success with continued growth of the Donut DAO treasury, as well as continuing the mission of making Donut an index of the best tokens on Base. Stay tuned for Taurus docs this week for specific details on launch, partner allocations and more. LETS FCKN MOOOOOOO
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A new bounty for you bounty boys
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