> For the complete documentation index, see [llms.txt](https://hyperspac3.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperspac3.gitbook.io/docs/tokenomics/liquidity-provisioning.md).

# Liquidity Provisioning

To ensure that the **$SPAC3 token** maintains **stability** and **sufficient liquidity** on decentralized exchanges (DEXs), 5% of the total token supply (5,000,000 $SPAC3) will be allocated specifically to liquidity provisioning. This allocation will be used to **pair $SPAC3** tokens with **stablecoins** (such as **USDC**) to create a stable liquidity pool for **initial and ongoing trading**.

**Why Pair with USDC?**

* **Stability**: By pairing **$SPAC3** with **USDC**, a **stablecoin** pegged to the U.S. Dollar, the project ensures that liquidity remains **stable** and **resistant to market volatility**. This minimizes the risk of drastic price fluctuations, ensuring that the token remains more **predictable** and **secure** for investors and liquidity providers.
* **Increased Market Confidence**: USDC is widely accepted and used across **crypto platforms** and **DEXs**, making it an ideal pairing for the **$SPAC3 token**. This pairing helps instill confidence in both **investors** and **traders**, as they can easily convert between USDC and $SPAC3 without significant slippage.
* **Liquidity Incentives**: To encourage continuous liquidity provision, token holders who provide liquidity by pairing **$SPAC3** with **USDC** on DEXs like **Raydium** or **Uniswap** will be rewarded through **staking** and **liquidity mining programs**. This ensures that the liquidity pools remain sufficiently capitalized, allowing for smooth trading and stable token price action.

**Liquidity Allocation Breakdown**

* **5% of the Total Supply**:
  * A total of **5% (5,000,000 $SPAC3)** will be allocated to liquidity provisioning. This allocation is crucial for the initial **liquidity pool creation** and for ensuring that there is sufficient liquidity for **early token holders** and **traders** to engage with the $SPAC3 token on decentralized exchanges (DEXs).
* **Liquidity Pool Creation**:
  * These funds will be paired with **stablecoins (such as USDC)** to create liquidity pools on **Solana-based decentralized exchanges** (e.g., **Raydium**) and **Ethereum-based exchanges** like **Uniswap**. These pools will provide sufficient depth for **smooth and efficient trading** of $SPAC3 tokens, reducing slippage and ensuring that token holders can easily buy and sell tokens.
* **Sourcing of Liquidity**:
  * The **5% liquidity provision** will be sourced from the **Fair Launch tranche**, not the **Team** or **Treasury allocations**, to ensure liquidity for **early token holders** and to facilitate trading on DEXs from the outset. This approach ensures that the liquidity is immediately available and accessible for the community as the token begins trading.

**Ongoing Liquidity Support**

* **Reinvestment from Profits**:
  * A portion of the profits generated from the **acquired businesses** will be reinvested into the liquidity pool, further bolstering the pool as the project scales. This ensures continued liquidity provision and allows for additional flexibility in the market, supporting the **long-term growth** and **stability** of the $SPAC3 token.
* **Regular Assessments**:
  * HyperSPAC3 will regularly assess the liquidity pool to ensure that it is sufficient to meet trading demand and to maintain a **stable token price**. As the project evolves and more assets are acquired, the liquidity needs may be adjusted accordingly.

#### **Conclusion**

By allocating **5% of the total token supply** for liquidity provisioning and pairing the $SPAC3 token with **stablecoins (such as USDC)**, HyperSPAC3 ensures that there is **sufficient liquidity** for trading, while maintaining a **stable market environment**. This approach allows early participants to engage with the token on decentralized exchanges, while **staking rewards** and **liquidity mining incentives** encourage long-term participation from the community. The liquidity pool will be continuously supported and reassessed to ensure that it meets the needs of token holders, ensuring the **growth and success** of the project.