The launch of KIVOT’s Eternal Pool is one of its most revolutionary decisions. Instead of starting as a traditional 50/50 liquidity pool with KIVOT and USDC, it was launched with only 10,000 KIVOT tokens and without pre-loaded dollars (USDC). This seemingly unusual strategy is actually fundamental to KIVOT’s sustainability and organic growth.
Traditional 50/50 Pool: A Recipe for Risk
If KIVOT’s Eternal Pool had been launched as a standard 50/50 pool (10,000 KIVOT and 10,000 USDC for an initial price of $1), it would have exposed it to serious vulnerabilities, especially in a volatile or bear market:
- Immediate Source of Sales: With 10,000 USDC in the pool, any KIVOT holder could immediately sell their tokens for USDC. In conditions of weak demand, this would quickly drain USDC from the pool.
- Drastic Price Drop: As USDC in the pool decreased, KIVOT’s price (PK=LUSDC/10,000) would plummet, potentially to $0.50, $0.20, or even lower. This would create a negative spiral, discouraging investors and compromising trust in the protocol even before it could effectively begin.
- Illusion of Liquidity: This “initial” liquidity is artificial. It is not a result of organic demand but of pre-loaded funds that can be withdrawn at any time.
Advantages of Starting with 0 USDC: The Genius of the Design
The decision for KIVOT’s Eternal Pool to launch as a “single-sided pool” on DODO Vending Machine, without initial USDC, is strategically brilliant and provides several key advantages:
- Impenetrable Protection from Collapse:
- When the pool starts with 0 USDC, the first transactions must be purchases of KIVOT with USDC. There is no USDC to be withdrawn initially.
- This means that every dollar that enters the Eternal Pool is injected by a real buyer, demonstrating genuine interest in KIVOT. This is organic liquidity building from the very beginning.
- In a bear market, even if arbitrageurs try to sell KIVOT for USDC, they would quickly deplete the small amount of available USDC. When USDC is exhausted, the Eternal Pool effectively stops offering USDC for KIVOT at a price below $1, preventing a further price drop below $1. The price remains “locked” around $1 until new KIVOT purchases with USDC begin.
- Establishing a Strong Price “Floor” of $1:
- KIVOT is designed to start at a base price of $1. By launching without USDC, the protocol effectively creates a strong price “floor”.
- Even under strong selling pressure, the price cannot fall significantly below $1 because there isn’t enough USDC in the pool to be withdrawn at a lower price. This provides fundamental value protection.
- Proof of Genuine Demand and Organic Accumulation:
- This launch method requires true, organic demand for KIVOT to accumulate USDC in the Eternal Pool. There is no “artificially” loaded liquidity to be drained.
- Every increase in LUSDC is a direct result of market activity, reinforcing the narrative of fundamental and autonomous growth. KIVOT is not a “pumped” asset but one that grows from real fees and purchases.
Conclusion:
✅ Anti-Dump Mechanism
- If someone tries to mass-sell KIVOT, they hit slippage and get far less USDC than expected.
- Their selling automatically strengthens the pool (0.3% fee is locked forever).
✅ Organic Growth Only
- No “fake” liquidity.
- Every USDC in the pool was earned through real trading activity.
✅ Bear Market Resilience
- Even if trading slows, KIVOT’s price cannot collapse below $1 for long.
- The pool’s design forces recovery via arbitrage.
Starting KIVOT’s Eternal Pool without initial USDC, and only with KIVOT tokens, was a strategically brilliant move. This approach not only protects KIVOT from immediate price crashes and “rug pulls” but also ensures that every dollar in the Eternal Pool is a result of organic demand and real trading activity.
This is at the core of why KIVOT is a truly self-sustaining and resilient financial primitive that builds value from the ground up.
