Treasury (POL)

The LFGROW Treasury, also known as Protocol-Owned Liquidity (POL) is the heart of the LFGROW ecosystem. All LFGROW products feed the treasury, and the treasury feeds all products through strategic capital injections. The larger the treasury is, the stronger the overall protocol becomes.

The treasury is fed by the following revenue streams and mechanisms:

• Revenue accrued from outside (the LFGROW ecosystem) memecoin communities staking their memecoins for risk-free yield.

• Revenue from further LFGROW ecosystem products.

• Hard assets accrued from protocol participants purchasing $LFG Bonds.

• Tax revenue from $LFG stake, and unstake taxes.

• Tax revenue from $LFYIELD buy, sell, transfer, stake, and unstake taxes.

• Transfers of both hard assets and protocol tokens from the liquidity pools of $LFYIELD and $LFG, performed in conjunction with bullish sentiment and price action of $LFG/$LFYIELD tokens.

• Fees from liquidity provision of both $LFG and $LFYIELD.

Capital is distributed from the treasury for the following reasons:

• Yield payments to $LFG stakers ($LFG tokens in the treasury are distributed).

• Capital injections into both $LFG and $LFYIELD to ensure token valuability is maintained (Hard assets in the treasury are distributed).

• Yield payments to $LFYIELD stakers (Hard assets in the treasury are distributed).

• $LFG and $LFYIELD from the treasury is sold infrequently and at times of bullish sentiment/positive price action in order to accumulate further hard assets for the treasury to deploy at times of bearish sentiment and price action.

• Transfers of both hard assets and protocol tokens to the liquidity pools of $LFYIELD and $LFG, performed in conjunction with bearish sentiment and price action.

• Development costs and miscellaneous costs towards building products for the protocol.

The genius of the original OHM model stems from aiming to build a treasury of hard assets such as USDC and ETH, instead of illiquid native protocol tokens. While the LFGROW treasury does also accumulate $LFG and $LFYIELD, These tokens are mostly paid out as yield or sold/converted to hard assets.