Initial liquidity

Starting a project is difficult, not only does one need a trustworthy developer, capital is also needed for providing a token's initial liquidity. This reduces the barrier to entry making it a challenging task starting a project.

Base Terminal provides project creators the option to borrow (Fuel) or use their own (No Fuel) Native Tokens for their initial liquidity.

The total supply of the token is always added to the initial liquidity, regardless of the decision to fuel or not.

FAQs:

Q: What is Liquidity?

A: In the world of Decentralized Finance, traders and investors trade against a Liquidity Pool (AKA LP) rather than an order book. The more money there is in a liquidity pool, the less volatile an asset's price is, otherwise known as market depth. Therefore, the more there is in a liquidity pool, the more stable the asset price can be, which in turn attracts a higher calibre of investors, among other things.