The booming decentralized finance market has given rise to series of great crypto and token projects. One of these projects is known as UpTokens, created by the RootKit team. The team developed reusable liquidity along with a new ERC token class (ERC-31337) and the Market Generation Events (MGEs) for the launch of tokens. There are more details about their project on their GitHub page
These UpTokens can be created anytime for any crypto coin, and the prices can be pumped whenever the need arises. The very thing that makes these UpTokens possible is their fixed floor price. This is a price below which the token price can never fall, no matter the nature of the market. The implication is that buying these UpToken is always a safe move. Although these UpTokens can move up and down with the linked coin, they won’t fall below their floor price.
UpTokens like UpBNB and UpTether have already been launched; now, they are currently working on launching UpMatic.
Details About UpMatic
is the first Polygon Market Generation Event (MGE), and the goal of the project is to expand into the Polygon ecosystem. It will utilize the ERC-31337 standard and will join two other RootKit’s UpTokens (UpBNB and UpUSDT). UpMatic is a synthetic ERC-20 token that utilizes the ERC-31337 to enable them to reuse liquidity below the price floor to go up against MATIC.
aims to wrap these tokens with ERC-31337 in order to help users maximize value in their portfolios. These UpTokens go up against their parent coin and benefit from RootKit buybacks that pump the price. The UpMatic is designed for current holders of MATIC or those who want to speculate on the future value of the MATIC coin.
Understanding Market Generating Event (MGE)
Market Generating Event is arguably the fairest way to start a new token and its market. One of the major problems when markets go live is that bots quickly buy up the price even before people can click on the buy button. This problem is what MGE addresses by utilizing the same value that provided the liquidity to buy from the market. Contributors will send value to the MGE contract, and once the complete function has been called, the following things will happen;
- The full supply of the new token will be minted.
- All minting will be stopped.
- The new token will be paired with 100% of the entire value raised in the MGE.
- ERC-31337 will be utilized to “sweep the floor,” and since there is no circulating supply, all the value will be received back.
- The value received back will be used to market buy from the pool that has just been created.
- All tokens bought will be distributed evenly among users, according to their contribution.
All these things happen almost simultaneously. Therefore, users need to worry about receiving maximum value for their contributions. However, there are series of options, and each MGE can function slightly differently. There are features like individual and total hard and soft caps, adjustable vesting period, and specific supply amounts. For the MGE, the rules include:
- 77.77% of the value a user contributes will be used to buy UpMatic tokens for contributors from the market before bots begin to buy.
- 2% will go to the referral system, shared between both parties.
- There is no vesting period.
- No individual or total hard cap will last for more than 5 days.
- A large tax on sales that reduces over the first week will replace vesting.
The MGE is only one day away from its official launch. Although the advent of UpTokens like UpMatic is relatively new in the crypto space, the potential impact can be of great help to crypto traders and investors alike.
