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[BurnIT]

Here is repost to thread from BurnIt Board that explains few features of SmartDefi:

Hi, I'm glad you asked. I was trying to keep the intro post generic to make it look clean but forgot that Crypto is a relatively new technology for a couple of years and SmartDefi is even newer with only 3 months under the belt. We that work in this field simply forget how new these concepts and new words are, for which there is not even a simple explanation anywhere online/offline to study. So stop me whenever you came across any word or concept that is not 100% clear, I am really glad to have a chance to explain, and maybe one day we can gather them all and make our own "Intro to Crypto book" to help new people get facts in one place.

Let's start with the terms from the intro text:

1. Liquidity locked forever inside contract
In order to be able to trade crypto in a decentralized way, there must be liquidity, the "bag" in which the requested token is and the base token against which it is traded. The downside is that there must be a exchange-DEX that will host that liquidity pool and person/s willing to provide that liquidity. With such a setup, unfortunately, we are returning to the "centralized sphere", the exchange-DEX can close, it can block the trade of a certain token, it can block access to individuals depending on the location (for etc lastly from March 9 Pancakeswap blocked Iran people from trading), or the liquditiy provider can simply decide to take his liquidity for some reason like move to another token or to simply cash out. It’s still much more advanced than the CEX exchange but it still has those few flaws.
Now the great innovation of SmartDefi tokens, unique in the world and the first of its kind (I doubt that in the near future anyone will be able to copy this technology) is liquidity forever locked in the very smartcontract of the token, you can even check the status directly on the BSCscan where the quantity of funds saved in the smartcontract can be seen like on some wallet: BurnIt BSC scan
What does it bring us in everyday life? Now the owners of the exchange and liquidity pool are the direct owners of the token and no one can ever delist the token, no one can block the trade nor can anyone withdraw liquidity. Technically, we don't even need a market anymore, you can trade SmartDefi token directly by interacting with the contract, such as through this Widget . It's an incredibly powerful technological advancement and now as long as Blockchain exists, nobody can never stop you in the trade.

2. Self-generating automatic liquidity
This refers to the SRPF tax (Smart Rising Price Floor), another innovation of SmartDefi. As the liquidity of the token is now directly locked in the token, it is more difficult to ensure high initial liquidity, but in this way liquidity is built through trade and volume alone. When selling a SmartDefi token, a percentage of the sales value is added to the liquidity. For example, with BurnIt we have 5% (maximum possible value) and that 5% of sales is added to the liquidity itself. As the volume grows, so does the liquidity of the token. As this is a constant process, try to imagining the liquidity of BurnIt token in a few years after a total of hundreds of millions of dollars are totally traded, in the future I am sure SmartDefi tokens will have the highest liquidity pools in the entire crypto world. Also additional liquidity of SmartDefi tokens is in fBNB which itself collects reflections from all trades, mind blowing!

3. AssetBacking pool for guaranted minimum value of BurnIi token
Also a big advantage of SmartDefi tokens is Asset Backing. It provides a guaranteed value of the SmartDefi token expressed as a Baseline price. A percentage of each trade is taxed and this amount is also placed in the smartcontract itself and serves as the "savings" of all token owners. This amount of value in Asset Backing is shared between all tokens in the circulating supply and it is possible to exchange your tokens at any time for the value collected in Asset Backing.
What does it bring us in everyday life?
As the value in Asset Backing depends on the total volume traded so the Baseline value itself grows forever, whether the token is sold or bought (Again as Asset Backing is in fBNB even if there is no trade it continues to grow due to fBNB reflections). This means that your every current purchase of SmartDefi tokens will then come to a point where it is in a guaranteed plus, when then the Baseline price will surpass the current market price, it is mathematically certain, it is only a question of when (Based on volume traded).
BurnIt additionally takes this to extremes, as Asset Backing
is divided only between tokens in the circulating supply and by such a drastic token burning and a reduction in supply itself Baseline price grows much faster than it should normally ensuring that every current owner comes to a guaranteed profit as quickly as possible. (For example if in Asset Backing is 1000bnb and the total circulating supply of some token is 1000tokens then the Baseline price per token is 1bnb. If we burn 500 tokens and AssetBacking stays the same then the Baseline token price is now 2bnb)

Let's say in an account when BurnIt exceeds the total traded value of $ 100 million in the AssetBacking pool will be saved $ 5 million, if we reduce the circulating supply by then to 500,000 BurnIt tokens then we get Baseline price per token of $ 10. So for all current purchases to be in the guaranteed plus we only need about $ 10 million in total trade volume. Imagine the market price of a token when its guaranteed price will be $ 10


I apologize for the longer post and the longer reading but it’s just hard to explain everything in a nutshell.
If something is left insufficiently explained or confusing please feel free to ask.