Additional Features: Overcollateralization and Integration with Luckblocks Lottery

In addition to the robust features of the synthetic token system, an important strategy is employed when the contract achieves a certain level of overcollateralization. This strategy aims to generate additional value for the ecosystem by participating in the Luckblocks CRANNI Lottery.

Overcollateralization Strategy

• Threshold for Participation: When the contract has at least 300% overcollateralization and a minimum of $2,000 in stablecoin value, it will automatically engage in strategic activities designed to generate more CRANNI collateral tokens. The goal is to increase the collateral of the system, benefiting the ecosystem as a whole.

1. Participating in the Luckblocks CRANNI Lottery

Once the overcollateralization and stablecoin threshold are met, the contract will participate in the Luckblocks CRANNI Lottery. This lottery is a decentralized lottery system built around the CRANNI token, offering an opportunity to earn more CRANNI tokens through strategic betting. The participation in this lottery will serve two purposes:

• Earning CRANNI Collateral: By participating in the lottery, the contract has the chance to win more CRANNI tokens, which can further be used to increase the collateral in the system. This increases the overall strength and security of the synthetic tokens and ensures that the system maintains its overcollateralization.

• Generating Volume for the Ecosystem: Even if the contract does not win, it helps generate additional volume for the Luckblocks lottery, which in turn boosts the liquidity and sustainability of the lottery ecosystem.

2. CRANNI LP (Liquidity Pool) Interaction

In the worst-case scenario, if the contract does not win the lottery or generate substantial returns, it will use its available funds to perform a buy operation on the CRANNI LP (Liquidity Pool). This has several key effects:

• Increasing the CRANNI Reward: By buying CRANNI tokens from the liquidity pool, the system increases the demand for CRANNI, which consequently boosts the reward potential for holders and participants in the ecosystem. This activity helps raise the price floor of CRANNI tokens, benefiting all stakeholders involved.

• Generating Revenue for the Ecosystem: The purchase of CRANNI tokens contributes to liquidity in the market, ensuring that there is always sufficient liquidity for users to trade and participate in the ecosystem. This creates a healthy, sustainable revenue stream for the project and supports the stability of the ecosystem.

Conclusion: Synergizing Collateral Growth and Ecosystem Health

By employing this strategy, the synthetic token system not only ensures that it stays overcollateralized, but also directly contributes to the growth and liquidity of the broader Luckblocks ecosystem. The contract’s interaction with the Luckblocks CRANNI Lottery and the CRANNI LP creates a positive feedback loop:

• The system grows by earning more CRANNI tokens.

• The system generates volume for the Luckblocks lottery and liquidity for the CRANNI market.

• The overall ecosystem benefits from increased stability, liquidity, and rewards for participants.

This approach aligns the incentives of synthetic token holders, the Luckblocks lottery, and the broader ecosystem, ensuring a long-term, self-sustaining model.