How does liquidity continue during zero investment?
Even in a scenario where no reserve allocation is received because there is zero auction investment, the contribution trigger will initiate an automatic process to provide funds to the Main Reserve.
If the Side Reserve has enough funds it will contribute to the Main Reserve up to 1:1 value of yesterday’s Main Reserve Contribution amount.
If the side reserve does not have enough funds to contribute to the Main Reserve, the Turnover will recover the Side reserve. Similarly, if the Turnover does not have enough funds to recover the Side reserve, the Turnover Reserve will automatically trigger the Relay ownership token to liquidate 10% of the Main pools. The process takes 10% of the proceeds from liquidation to push capital to the Turnover Reserve, which in turn refills the Side Reserve, allowing it to follow normal processes and directly contribute up to 1:1 value of yesterday’s Main Reserve Contribution amount.
The contribution trigger allows continuous liquidity and growth even without Auction investment.
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