Economical Center Smart Contract
An Economical center is a smart contract for economical interactions with in-game assets,
Economical center V1 (Alpha Launch)
At the first iteration of game economics, it will work as an exchange at a stable ratio: 1 USDC = 5 Lempi Coin. The transaction fee will be 3% per transaction. Initial liquidity will be provided by the project team.
Economical Center V2 (Later in Alpha/Beta)
it supports the following methods: 1) Tokens exchange, $LempiCoin to $USDC and $USDC to $LempiCoin
2) Mint new $LempiCoin if the exchange ratio achieved Max Price $USDC
3) Buyback and burn $LempiCoin if the exchange ratio is less than Guaranteed Price $USDC
Economical center is designed to simplify the exchange process for in-game tokens, aswell to lower economics volatility and prevent the potential huge loss of every player, so they will be always available to exchange their in-game tokens at a minimal fixed ratio regardless of the market situation. The expected Max Price will be 0.25 USDC and the guaranteed price 0.15 USDC (these values can be changed, but Max Price will be more than 0.2 USDC and guranteed price is less than 0,2 USDC).
How does it work?
It is useful for users who want to exchange $LC to $USDC and vice versa and implement several methods.
Trade is using an automated market-making algorithm based on a "constant product formula" same as used on Uniswap, but with some extended functionality for stabilizing game economics.
Every exchange transaction can use one of 3 methods: exchange, exchange+mint and exchange+buyback, based on current pool liquidity and exchange ratio.
Case 1. Exchange USDC to LempiCoin. The player wants to buy a small amount of $LC with a middle exchange ratio. Pool liquidity is 10 000 $USDC, current ratio is 0.2 $USDC per $LC. Player wants to exchange 100 $USDC for $LC. The player will receive 495.05 $LC with a slippage ratio 0.201 $USDC per $LC, and the new exchange ratio will be 0.204 $USDC per $LC and pool liquidity is 10100 $USDC
Case 2. Exchange LempiCoin to USDC (TBD).
Case 3. Exchange USDC to LempiCoin + Mint at max price (TBD)
Case 4. Exchange LempiCoin to USDC + Buyback LempiCoin at min price and burn (TBD)
Anti-fraud system
Every player has understood the risks, such as the front-runner problem with blockchain transactions, but we still help players minimize risks and keep money inside the ecosystem and not give it to market manipulators and tech traders.
There is a buyback guarantee for LempiCoins based on NFT usage history to save players from the outer attack of crashing the market. We want to keep money inside the ecosystem and minimize the share got by market manipulators and technical traders. If you get your Lempi Coin tokens from using NFTs you will never face the buyback guarantee limit. So it calculates as (TBD): So, it prevents market manipulators to receive players' funds due to market volatility cause they have no guarantee to save their funds if they received it by trading, not playing the game. As well as to prevent HODL of LempiCoin by regular traders, since it is a utility token.
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