Silverswap: The Game of Patience and Deflation

When we designed Silverswap we wanted to ensure that users were empowered by every system they encountered. We not only wanted people to feel like traders, but also like they were the ones running the show and had the abilitiy to earn like they were too.

Silverswap set up two different auction systems that power its sustainability. Each system uses deflationary mechanisms to ensure that AG does not become hyper inflationary, and will eventually be deflationary.

The two auction systems are:

- Flare Auctions: These auctions are considered our buyback auctions. We utilize 12 hour epochs to segment our trading fees, 3.5% of the total trading fees that are generated by our platform are streamed to a singluar pot for Flare. Users can come to this auction and bid with their AG tokens to direct that pot of funds to buy the chosen token. At the end of the epoch, whoever has the highest bid gets their chosen token bought back with the entire pot.

- Snatch Auctions: Each liquidity pool that we host accumulates its own pot of AG tokens equal to 5% of the fees that are collected in that epoch. Users can then come to bid on the pots of AG, with their own AG tokens, and whoever has the highest bid at the end of the epoch, takes the entire pot!