Scarcity

Behodler is a single sided AMM with a universal liquidity token, Scarcity (SCX). Each token listed on Behodler generates SCX along its own bonding curve. The relative price in SCX of each token implies their exchange rate, enabling direct token to token swapping. This also means that the supply of SCX is algorithmic and is proportional to locked liquidity, rather than being capped, similar to how LP tokens on traditional CFMMs are generated in response to liquidity provision. SCX is a burn-on-transfer token which means that as the trading volume of SCX on external AMMS increases, SCX's supply will fall. Instead of relying on trading fees to grow liquidity, Behodler relies on the tokenomics of SCX to draw liquidity into the AMM. Since SCX is required to redeem liquidity, the ongoing burn of SCX implies a growing portion of permanent liquidity on Behodler. And since the price of SCX equates to the average value liquidity on Behodler, all incentive structures including yield farming are aimed at increasing the SCX price, either through lockup or incentive backed burning. Unlike many protocols that seek to silo liquidity, Behodler thrives when working in conjunction with existing AMMs, forming a synergy that opens up opportunities to both yield chasing defi veterans as well as infrequent traders who simply wish to swap for the lowest possible gas cost.