Liquidity refers to how easily $MCOS can be converted into ADA. A low liquidity level means that the market is volatile, making it easier for a few individuals to manipulate prices. Therefore, we see the need to maintain a high liquidity rate that can produce several advantages (*):
High liquidity and high trading activities are more likely to facilitate an equilibrium price that is acceptable to most people.
High liquidity ensures $MCOS’s price is stable enough to withstand large orders.
High liquidity allows for greater accuracy in technical analysis since price and chart formation is more refined and precise in a liquid market.
In order to achieve the aforementioned liquidity rate, we will reserve 5% for LP farming rewards to incentivize our liquidity providers.