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

# Our Approach

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

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.

### 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 2.26 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 $PRIM tokens from the market.**
* These $PRIM tokens are then **distributed to the community:**

{% stepper %}
{% step %}
**35% to Creators**\
Rewarded weekly based on their token’s 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 for **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="/files/A3mc1BMApSAnD1tCMrhq" alt=""><figcaption></figcaption></figure>


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