Elixir

As mentioned in the Special Resources section of the document, Elixir is a special resource that can only be earned by providing liquidity to one of the pools on the internal market. This provides additional incentive for players to provide liquidity on top of the DEC fees they will receive. Elixir is expected to be an essential resource within the land economy since it is required in order to combine Essences with Magical Resources in a Laboratory to produce Elemental Essences which are in turn required for many essential processes including producing Elemental Foods.

The amount of Elixir earned by liquidity providers will be based on the total amount of DEC tokens they have locked up in liquidity pools at the time that liquidity was last added or removed by the current player from a particular pool. For example, if a player provides 1000 DEC tokens of liquidity to a pool (paired with the same value worth of another resource), then they will earn a specified amount of Elixir tokens periodically in proportion to the 1000 DEC they have added.

That amount will stay the same even if the DEC portion of their liquidity position increases or decreases as a result of swaps happening in the pool. If the player either adds or removes any amount of liquidity from that pool, then the DEC token amount used to calculate the player's Elixir earnings will be updated at that time and apply going forward. Elixir earnings from liquidity positions can be claimed at any time and will need to claimed at least once every 7 days or else any Elixir earned from beyond 7 days will be lost. Players will also need to own or rent storage space for the Elixir in the Region in which the liquidity was provided or else it will be lost (burned) as well. Please see the Storage section for more details on that.

Unlike the swap fees, the amount of Elixir earned is NOT proportional to the amount of liquidity in the system in total, so a player's Elixir earnings will not be reduced if more liquidity is added or vice versa. Instead, the amount of Elixir earned per DEC worth of liquidity provided will automatically adjust on a periodic basis based on the price of Elixir vs DEC in its own internal liquidity pool. This will allow the supply of Elixir within the game to naturally adjust based on demand and avoid a situation where the resource is either too abundant and therefore worthless, or that it is too scarce and becomes a bottleneck for the entire economy.

Elixir is planned to also be able to be purchased for a fixed amount of DEC and/or VOUCHER tokens. This will provide an upper bound to the market price and therefore to the amount that is distributed to liquidity providers. This is necessary to help prevent price manipulation exploits.