How the Safemoon Protocol Works
Safemoon Protocol is an artificially intelligent network token. According to its website, SafeMoon protocol is designed by a group of financial experts who have collectively developed a number of trading and investing methods. This method uses a self-regulating mechanism which monitors and trades the tokens within its own self-service platform. The creators of this method also claim that the method is able to provide a self-service platform for traders to interact with each other without being in direct contact. As such, all the information that is traded, collected and analyzed remains within the purview of the company itself.
In order to understand how the Safemoon Protocol works, it is vital to look at how a traditional investment fund behaves. For example, a mutual fund may buy safemoon token A, B, and C and then invest the funds. The creators of the Safemoon Protocol say that their system has algorithms which monitor the activities of each fund manager and then place orders to buy safemoon token D when token A and B are bought, and to sell safemoon token E when token A has been bought. The creators further claim that this algorithm will also ensure that each order placed is executed and no orders are missed or delayed. It should be noted that all three functions of a fund are supposed to have a natural relationship where each function is independent and self-reinforcing.
The creators of the Safemoon Protocol have also designed a self-liquidating liquidity pool that will automatically liquidate any excess amount of tokens that remain in the Liquidity Pool when the market opens. In order for this mechanism to work, it is imperative for token holders to regularly update the Liquidity Pool and its order schedule so that the liquidity pool will remain viable during abnormal market conditions. The developers of the Safemoon Protocol hope that by providing accurate order scheduling and Liquidity Pool updates, token holders will be able to enjoy the most substantial benefits from their portfolio investments. This will allow them to build a more diversified portfolio while maintaining a solid floor price at all times.
