Protocol Owned Liquidity (POL)

25,000,000 PEP or 25% of the total supply has been allocated to Protocol Owned Liquidity (POL), 10,000,000 PEP of which will be used to bootstrap the PEP token market through two separate PEP token auctions will be held using a fair launch liquidity bootstrapping curve (LBC).

Liquidity Bootstrapping Curve (LBC)

5% - PEP-SOL Auction

• Date: TBD

5% - PEP-USDC Auction

• Date: TBD

5% - Ecosystem Liquidity Alignment Initiatives

Once both auctions are complete, PepperDEX will take 80% of the auction proceeds and commit them to SOL and USDC liquidity pools. 20% of the auction proceeds will go to the PepperDEX Treasury for operations. 10% of the token supply will be designated to PEP Protocol Owned Liquidity and split between the pools to allow the protocol to provide base token market liquidity for each pair. PepperDEX will generate revenue from this POL, which will be used to grow the treasury and strengthen the DAO. 30% of the protocol revenue will be re-directed to these pools until PepperDEX achieves a POL threshold of $5m. When this is achieved, the fees will be reallocated to traders in the form of oPEP trading incentives.

Ecosystem Liquidity Alignment Initiative

The remaining 10% of the total supply of PEP allocated to Protocol Owned Liquidity will be used for Ecosystem Liquidity alignment initiatives to partner with other protocols and create liquidity pools consisting of PEP and partnered project's tokens.

As previously mentioned, the PEP-based POL liquidity pools made up of PEP/SOL, PEP/USDC, and a combination of the pairs listed below as part of the Ecosystem Liquidity Alignment Initiative will receive 30% of the fees generated by the protocol.

Ecosystem Liquidity Alignment Initiative Pairs

• PEP/HXRO

• PEP/BONK

• PEP/GUAC