2.3.2 Dynamic Liquidity Pool

To ensure liquidity and market stability for Memecoin trading pairs, the platform adopts a dynamic liquidity pool mechanism. The AI system monitors market trading volume and Memecoin price fluctuations in real-time. When the trading volume of a certain Memecoin suddenly surges, the system automatically adjusts the liquidity pool’s weight and fee structure for that trading pair. For example, the platform may increase the liquidity of Memecoin in the trading pair and reduce transaction fees, encouraging more funds to flow into the pair and ensuring smooth trading. At the same time, the platform dynamically adjusts the reward mechanism based on the volatility of the liquidity pool. AI analyzes real-time data to optimize the distribution of liquidity pool rewards, allowing users to receive flexible and efficient earnings based on market changes and the trading activity of Memecoin. The platform uses AI algorithms to dynamically adjust the weight of the liquidity pool based on changes in market trading volume. When the trading volume of Memecoin spikes, the platform will increase the liquidity of the trading pair and reduce transaction fees, as shown in the formula below:

Where:

• ΔT is the change in Memecoin trading volume;

• Tthreshold is the set trading volume threshold, when the trading volume exceeds this threshold, the platform will dynamically adjust the liquidity pool and fees;

• New Liquidity Weight and New Fee are the adjusted weight and fee.

When trading volume increases, liquidity weight increases, and fees decrease, in order to encourage more liquidity to flow in. Based on this, we expect to attract more liquidity providers and enhance the platform's market adaptability.