ABSTRACT

Automated Market Makers (AMMs) currently encounter a notable challenge — they struggle to effectively encourage the long-term success of blockchain projects. The problem arises because token creators are encouraged to prioritize profits by rapidly withdrawing liquidity and discreetly selling tokens. Liquidity providers tend to prefer short-term commitments, withdrawing and selling their liquidity as token value rises. This misalignment in structure hampers the growth of projects designed for long-term success. Addressing this challenge is vital, as the current AMM model lacks the necessary incentives to foster continuous growth and resilience in the blockchain ecosystem.

Solana, known for its high throughput and low transaction fees, offers significant advantages over traditional Ethereum Virtual Machine (EVM) chains. Solana’s scalability and speed make it an attractive platform for decentralized exchanges, but it still faces challenges such as rug pulls and low liquidity. These issues stem from the same short-term liquidity incentives present in other ecosystems. To address these problems, we bring SOLAVISTA to the Solana chain, creating a sustainable model that rewards long-term liquidity provision and ensures greater security and stability for blockchain projects.