SafeMoon Protocol or SFM (SFM/USDT – trade it here) is a deflationary reflection token with automated liquidity acquisition. The protocol aims to solve problems including mining and farming rewards, and liquidity provision. SafeMoon promotes using a smart contract token to produce tokens in each wallet to provide mining rewards. In this way, it is more friendly to the environment. We will soon discover everything you need to know about SafeMoon Protocol, plus an instruction on how to buy SFM tokens.
Additionally, SafeMoon utilizes a smart contract feature to automatically capture liquidity for usage on the decentralized exchanges and custody apart from user possession. By lowering the overall supply, a smart contract that allows token burning can encourage scarcity. These tokenomics may provide far better benefits for the community within the decentralized venue when combined. An ideal incentive to hasten adoption and encourage new use cases is to permit certain functionalities to be amplified and volume-dependent.
Automated Liquidity Acquisition
Liquidity plays a crucial role in any trading situation. What is decentralized liquidity? Simply put, it is the accessibility of operated and controlled tokens in a smart contract. Noted that the smart contract is hosted by a decentralized exchange. Liquidity pools in a decentralized venue have long since substituted traditional order books, which have been rendered obsolete by advanced technology.
The right incentives for increasing liquidity are a crucial component in any decentralized context, just as market makers have their paid services in the order book environment. Problems arise when the token pair is susceptible to impermanent loss as a result of arbitrage, which takes place when the liquidity pool provider loses the motivation to add tokens to the pool.
Traditional mining is expensive and inconvenient for the user. Simply holding your tokens generates frictionless, static reflection rewards, and SafeMoon has a unique hold-farming reward structure that differs from traditional pool-farming benefits. This function’s goal is to get rid of token dependencies that have in the past caused issues, including but not limited to:
- External website interfaces
- Require transaction fees to claim rewards
- Fund pooling from unverified third party smart contracts
To solve these problems, SafeMoon uses a compounding reward structure, also known as token reflections in a smart contract function as a fix that doesn’t cost more. This requires reflection to occur without expense to or negative effects on the users. The amount of market activity will directly affect the amount of token reflection depending on the proportion of tokens held by the user in relation to the total supply, given the static rate of reflection set at 5%.
How to Buy SFM Tokens?
You can buy SFM on MEXC by the following the steps:
- Log in to your MEXC account and click [Trade]. Click on [Spot].
- Search “SFM” using the search bar to see the available trading pairs. Take SFM/USDT as an example.
- Scroll down and go to the [Spot] box. Enter the amount of tokens you want to buy. You can choose from opening a Limit order, a Market order or a Stop-limit order. Take Market order as an example. Click [Buy SFM] to confirm your order. You will find the bought tokens in your Spot Wallet.
Recent Price & Performance of SFM
SFM reached the highest price (ATH) of $0.0027 on January 8, 2022. The lowest price since the date of ATH was $0.002383 on October 21, 2022.
Want to Explore More Crypto like SafeMoon?
Check out our listings in the Innovation and Assessment zones as well as the major tokens in the Main Zone – we have more amazing projects to come! More than that, MEXC lists moonshot and offers access to trade major cryptocurrencies. Visit the Hot Projects section as well to uncover more featured popular tokens. Lastly, feel free to visit MEXC Academy to learn more about cryptos!