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Reverse Liquidity Split (RLS)

(Implementation)

Idea

The Reverse Liquidity Split is inspired by the Reverse Stock Split.
In TradFi, a company can consolidates the number of existing shares of stock into fewer (higher-priced) shares. This is usually a red flag, but there are advantages in terms of regulations/policies.

In DeFi, It seems completely unnecessary to divide the balance of every holders...

Unless we only apply this mechanism on a liquidity pool 🤔

How it work?

We have the $REV token with some liquidity on Uniswap V2.
Liquidity => 1000 $REV / 1000 $USDC
Price => 1 $REV = 1 $USDC

If we start a 50% split (by calling the split token function), the smart contract will burn 50% of the UniswapV2Pair balance and call the sync function.

 _burn(liquidityPool, liqAmount / divisor);

IUniswapV2Pair(liquidityPool).sync();

After that, we have in liquidity : 500 $REV and 1000 $USDC. This will change the price!
1 $REV = 2 $USDC. This is a 100% increase.

Conclusion

Great ! Your token is pumping. But never forget that :

  • This is not a real solution (rather a red flag).
  • It will increase volatility.

Run the project

Build project

forge build

Run tests

forge test --fork-url https://eth-mainnet.alchemyapi.io/v2/your-key

Tests are targeting mainnet Uniswap V2 Router and Factory

Installing the toolkit

This project is using Foundry

Install Rust and Cargo

curl https://sh.rustup.rs -sSf | sh

Install forge

cargo install --git https://github.com/gakonst/foundry --bin forge --locked