Price Stability & Pair Creation

Olympus constantly add project-owned liquidity to the internal swap to help with the price stability.

As mentioned in Mechanism Breakdown the second goal of Olympus is ensuring the price stability for the Apollo token. The way Olympus strives to achieve this is by regularly creating Apollo-Solana pairs within the internal swap. To make this possible, Olympus uses funds of Apollo and Solana tokens which are kept in a pool called the Pair Creation pool and are collected from Taxes and also a portion of Lobby entries to constantly create and add liquidity pairs to the Internal Swap.

To be precise, the function responsible for adding pool funds to liquidity can be called by any user at any time through the swap contract, given that the pool have enough balance.

As you may be aware, when you provide liquidity, the swap mints liquidity tokens (LP tokens) as a reward and an indicator of your share from the total provided liquidity which can be staked in Yield Farming for additional rewards or be removed from liquidity to get back the provided liquidity at anytime. To ensure that this liquidity providing becomes an irreversible action and cannot be reversed, the Olympus project simulates burning the tokens by transferring them to the universal zero address. While the project-owned liquidity greatly helps in maintaining a stable price, there is another feature that contributes to this goal, Yield Farming. Yield Farming for Olympus is aiming to incentivize investors to provide and lock their liquidity in the Internal Swap. Olympus achieves this by offering rewards from the Yield Farming Reward Pool for those who stake their LP tokens. This works work in harmony with project-owned liquidity to support the project's second goal and ensure a stable future for the Apollo token.