The Fountain of Lif3 is the primary supply expansion mechanism for the $LIF3 token. It operates in 12-hour epochs and is dependent on $LIF3's price ratio to the respective chain's gas token.
The required condition for the Fountain of Lif3 to emit new $LIF3 into circulation is the ratio of $LIF3 to the gas token for the chain the Fountain resides on. The "Needed Ratio" is the set ratio threshold for a supply expansion by the Fountain of Lif3. The “Current Ratio" is based on a 12-hour Time Weighted Average Price (TWAP).
When $LIF3 is able to reach a minimum TWAP of the "Needed Ratio" by the end of the epoch, the protocol interprets this as $LIF3 being in high demand and releases new $LIF3 tokens into the circulating supply. If the ratio is under the threshold of the "Needed Ratio" to distribute, the Fountain of Lif3 will not emit new $LIF3 tokens. The TWAP is reset upon the start of every epoch.
For example, if the “Needed Ratio" is 1.0 on the Fantom Opera Chain, then the average price of $LIF3 over the 12-hour epoch would need to be at the same or higher price as $FTM. If it is not, the Fountain of Lif3 remains dormant, and there is no supply expansion.
Investors can stake $LSHARE in the Fountain of Lif3 and receive new tokens that are emitted into the circulating supply. These tokens are distributed evenly amongst all the staked $LSHAREs and in the form of $stlLIF3, which are interest-bearing receipt tokens for the Greenhouse. This simply means that upon every supply increase, the new tokens are automatically staked into a yield-generating vault, where they will compound and earn upon themselves until the investor is ready to withdraw from the Greenhouse. $stlLIF3 can be withdrawn at any time.
There are withdrawal locks on the Fountain of Lif3. Upon depositing/staking, $LSHAREs will not be able to be withdrawn for 6 epochs (72 hours). In addition, there is a 3 epoch lock (36 hours) when harvesting rewards.