Reflexive Network Effects

When one ecosystem token appreciates, the entire network benefits.

Example: COIN2 rises

• COIN2 appreciates in its WSOL market.

• The SENTRY/COIN2 pool value rises because the reserve asset is now more valuable.

• Arbitrage bots buy SENTRY to extract COIN2 from the pool and sell it in WSOL markets.

Result

• SENTRY demand rises across the ecosystem.

• Other SENTRY pairs see new arbitrage opportunities and increased volume.

• The price action of one successful token propagates through all connected pools.