Floor Engine
Home > Protocol > Autonomous Trading System (ATS) > Floor Engine
This document provides a detailed overview of the Floor Engine, a specialized component of the Noderr Protocol's Autonomous Trading System (ATS).
Function & Purpose
The Floor Engine is responsible for maintaining a stable price floor for the native NODR token. It executes automated buy-backs and liquidity provision strategies when the token price approaches a predetermined threshold. This mechanism is designed to provide a level of price stability and to protect the token from excessive downside volatility.
Mechanism of Action
The Floor Engine continuously monitors the price of the NODR token across multiple exchanges. If the price falls to a certain level, the Floor Engine will automatically:
- Execute Buy-Backs: Use a portion of the protocol's treasury to buy NODR tokens on the open market, creating buy pressure and supporting the price.
- Provide Liquidity: Add liquidity to the NODR/ETH (or other pairs) pool on a decentralized exchange, which can help to absorb selling pressure.
Governance & Control
The parameters of the Floor Engine, such as the price floor threshold and the amount of capital allocated to buy-backs, are controlled by the Noderr DAO. This allows the community to adjust the Floor Engine's behavior in response to changing market conditions.
Maintained By: Noderr Protocol Team