POL Tokens

Adding robustness to the protocol while avoiding mercenary capital

To avoid the constant sell pressure often experienced by many DeFi projects and to correctly align incentives for key protocol participants, 20% of the total supply is “non-sellable” Protocol Owned Liquidity (POL) tokens. These are $STABUL tokens which cannot be sold. They can only be staked to receive a % of the protocol's success, and will never be withdrawn or sold on the market - unless a major change is voted on by the DAO.

It is important to note that POL tokens do NOT represent a separate token but are instead $STABUL tokens locked into a staking protocol and will not be withdrawn and sold. Rewards however will simply be streamed to designated wallet addresses supplied by strategic POL token holders, and are designed to bootstrap initial liquidity and core services to maintain liquidity and balanced pools. Rewards - also create a mechanism to bolster the robustness of the protocol and avoid the type of unnecessary sell-pressure commonly associated with early token projects.

20% of all fees generated will be used to purchase $STABUL from the market for distribution to POL token owners via a traditional pool claim feature, thus enabling POL token owners to claim 20% of all platform revenue indefinitely.

The primary function of the POL pool besides strengthening the protocol’s resilience and token is to provide a passive income stream for key stakeholders based on the platform’s performance to incentivise brand support and growth while simultaneously locking away 20% of the total $STABUL supply permanently to reduce potential sell pressure.

Example: A market maker or Stablecoin Issuer may offer to provide X $mm in liquidity for a new pool for a minimum of N months/years. To cover their cost of capital they would receive an amount of POL tokens at a cost basis of $0. This allows the participant to provide an invaluable service (liquidity) to Stabull without the ability to speculate on capital gains (unable to sell these tokens). Their cost of capital is covered by way of % of protocol gas/swap fees. Once their term expires (if not renewed) it is intended their POL tokens will be returned for allocation to future liquidity providers.