🛡️ Floor Price Guarantee

The floor price is the foundation of Hikari’s value system. It defines the minimum price at which a token can be redeemed through the protocol, and it’s enforced by design through active liquidity and smart contract logic.

Unlike vague promises or soft support levels, this floor is backed by real assets held in the protocol treasury. Tokens cannot fall below this value as long as the system is functioning.

🔍 What Is the Floor Price?

The floor price is the lowest value at which a token can be swapped for AUSD through Hikari’s liquidity system. It is protected by a concentrated liquidity position that ensures two key conditions:

• Sellers can always redeem their tokens for AUSD at or above the floor price

• The treasury contains enough liquidity to buy back all circulating tokens at the floor level, based on a principle called the Floorline Rule

This guarantee is maintained using Hikari’s automated rebalancing functions, including PullDown, PushUp, FloorRaise, and Drop.

💡 How It Works

• Initial Liquidity Placement When a token is initialized, most of the backing AUSD is deployed just below the market price to create a strong price floor.

• Efficient Capital Deployment Hikari uses SushiSwap’s concentrated liquidity pools to allocate liquidity precisely where it's needed. This approach avoids wasting capital and ensures deeper protection at critical price levels.

• Ongoing Reinforcement As users trade the token, a portion of each swap fee is redirected into the floor liquidity. Over time, this causes the floor price to rise, making the system stronger with each trade.

🔁 What Maintains the Guarantee?

• The Floorline Rule This rule ensures that the protocol always holds enough AUSD in active liquidity to fully redeem all circulating tokens at the floor price. It creates a hard-backed safety net for holders.

• Automated Rebalancing As prices shift, the protocol automatically adjusts the liquidity ranges to maintain coverage around and below the current price. This keeps the system responsive without requiring manual intervention.

🔒 Why It Matters

Most DeFi tokens face extreme volatility, and many collapse completely due to poor liquidity or lack of safeguards. Hikari offers a different approach by making the worst-case scenario predictable and protected.

With Hikari:

• The minimum redeemable price is always visible and guaranteed

• Token liquidity cannot be pulled below the floor

• The floor price gradually increases over time as the system captures trading fees

This creates a safer environment for both builders and users, where tokens are not just traded but protected and strengthened over time.