Babo game theory concepts
Last updated
Last updated
The swap mechanism creates arbitrage opportunities because the $babo token price is linked with the NFT value. For example, if an NFT’s floor price falls below the claimable amount (because the $babo price goes up, for example), a user could buy the NFT at a lower price in the marketplace, claim the $babo tokens in our website, and then sell them for a profit. This also contributes to a positive feedback loop by burning $babo tokens in every swap.
The more BABO NFTs in circulation, the more $babo tokens will be locked in the Babovault, potentially removing up to 48.2% of the circulating supply. If this happens, it could lead to an increase in the price of $babo due to the reduced availability, which in turn will drive up the floor price of the NFTs, potentially causing them to be swept up from the market.
Investment Optimization: Users can develop strategies to maximize their profits by buying and selling NFTs or $babo tokens based on market fluctuations and arbitrage opportunities.
Active Market Participation: Changes in the $babo market and NFT prices can lead to more active participation as users seek to maximize gains through strategic exchanges and arbitrage opportunities.
Feedback Cycle: The system is designed to create a positive feedback loop. As users exchange NFTs for $babo, the supply of $babo decreases, which may increase its value and attract more users to participate. This increase in $babo value can lead to more exchanges and higher activity within the system, benefiting both NFT holders and $babo token holders.
Disclaimer: Coding and cryptocurrency are complex, and while we aim for functional code, there are inherent risks in the volatile crypto space. BABO NFTs are created for artistic and community engagement on the LUKSO blockchain, and there is no guaranteed profit. Participants should be aware of the risks and potential for value fluctuations.
Please note that this document is subject to change, and we reserve the right to update or modify content as needed.
