> For the complete documentation index, see [llms.txt](https://fwastr.gitbook.io/flaunt.meme/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fwastr.gitbook.io/flaunt.meme/liquidity-management/our-approach.md).

# Our Approach

In DeFi, liquidity is everything—but most platforms waste it by burning it too soon. At Flaunt, we do it differently. Our liquidity management system keeps liquidity productive, recycles it from inactive tokens, and turns it into rewards for the community.

## Our Smarter Approach to Liquidity Management

### 1. Burning Liquidity Only for Successful Tokens (Uniswap V4)

We only burn liquidity for tokens that reach a **$1 million market cap.** Why? Because those tokens have proven their value in the market. Until they hit that milestone, their liquidity tokens remain locked in our **Liquidity Manager** for security and transparency.

This ensures we’re not wasting valuable liquidity on projects that don’t take off.

{% hint style="info" %}
If you choose to list your token on Uniswap v3 instead, the liquidity is permanently locked in our Liquidity Manager forever—no burning occurs, regardless of market cap milestones. Tokens listed on v3 remain securely locked, while those on v4 are eligible for burning only upon reaching $1 million market cap.
{% endhint %}

### 2. Reclaiming Liquidity from Dead Tokens

If a token shows **no trading activity for 7 consecutive days** and its Uniswap liquidity pool holds **less than 3.26 ETH**, we consider it a **dead token**. \
Instead of letting that idle liquidity sit there doing nothing, we **remove it** and put it to better use:

* **100% of reclaimed liquidity is used to buy $FLNT tokens from the market.**
* These $FLNT tokens are then **distributed to the community:**

{% stepper %}
{% step %}
**35% to Creators**\
Rewarded weekly based on their token’s dex trading volume.
{% endstep %}

{% step %}
**35% to Traders**\
Shared with users based on platform trading activity.
{% endstep %}

{% step %}
**25% to Stakers**\
Boosts the APR in the staking pool.
{% endstep %}

{% step %}
**5% to Dead Token Holders**\
Gives holders a chance to recover some value.
{% endstep %}
{% endstepper %}

This creates a win-win across the board—**creators** earn for launching, **traders** get rewarded for activity, **stakers** enjoy higher APR, and **holders** of dead tokens recover some value.

{% hint style="info" %}
Both functions are triggered securely using **Chainlink Automation**, which listens for on-chain events like market cap milestones, trading inactivity, and ETH balance in the token’s Uniswap pool.

Only **Chainlink’s Upkeep Forwarder** is allowed to call these functions, ensuring the entire process is **fully automated**, **on-chain**, and completely **shielded from manual interference**. It's a safety-first system designed to protect the platform—and the community.
{% endhint %}

<figure><img src="https://4278525303-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FB3jDdGJL35tlESF3x8as%2Fuploads%2FlQnM1lGdu8IJh1P1wBiL%2FFrame%20518.png?alt=media&amp;token=5e1921f8-33d7-4cb9-ae82-1a3853ffab23" alt=""><figcaption></figcaption></figure>