Liquidity Manager (LM) is a mechanism that allows to contain the price action of a token within a defined range.
Price remains stable within the defined range. Be careful, this only works if there is enough liquidity in reserve. If there is no more BUSD, the reserve will not be able to maintain the price and it will collapse.
The Liquidity Manager developed and implemented by Spring Game is a contract that constantly monitors the price of $SPR.
When the $SPR token goes below the defined low range, the Liquidity Manager wallet buys back the token on the market, so the price goes up.
When the $SPR token goes above the defined high range, the Liquidity Manager sells the token to fill the wallet and buys back the token when it reaches its low range.
The price of the $SPR token remains in a defined range and optimized for the values of the protocol.
The price of $SPR will evolve in the range of $0.95 to $1.10.
There will be a maximum variation of 15% between the top and bottom of the range.
Whenever the $SPR token price goes below $0.95, the Liquidity Manager buyback from the Liquidity Manager Wallet funds.
Whenever the $SPR token price goes above $1.10, the Liquidity Manager sells some $SPR and collected $BUSD are all transferred to the Liquidity Manager wallet.