[Disqualified] Oil Token - runs like clockwork

Project Name: [Oil Token]
Project Track: [AI]
Team Name: [@BigDealCompany ]
Team Member(s): [1]
HackerEarth Project Link: [coming soon]
Project Goal: [The project examines the effect of arbitrage trading on a token]
Project Value: [ Growing liquidty and burning BTT as effect of the arbitrage fees ]
Project Info: [The Project was launched in a shadowlaunch in ICR-OIL, BTT-OIL, later it the LPs put together and now ICR_b-OIL, BTT-OIL and ETH-OIL are the end result.]
Project Website: [-]

Project Test Instructions: [The Project was a shadow launched from the Crypto entrepreneur Ing. Michael Eder on InterCroneswap, the biggest community driven DEX on Bittorrent. InterCroneswap is listed on Coingeckoterminal and by searching with the contract adress 0x83cebaae144ab323b3505214cc26101968e4d75d you see the results.
WBTT/OIL - Wrapped BTT Price on InterCroneSwap (Bittorent) | GeckoTerminal]

Project Details: [We asked Chat GPT

  1. I create a new token and create a Liquidity pool with ETH, BTC and USDT. 0.2% fee on all trades will be added to the liquidity pool. *
    What is the effect of arbitrage trading between several liquidity pools if nobody buy or sell the new token.

ChatGPT: If nobody buys or sells the new token, the effect of arbitrage trading between several liquidity pools will be minimal or non-existent. Arbitrage trading relies on exploiting price differences for the same asset across different markets or liquidity pools. In this case, since there are no trades happening for the new token, there won’t be any price disparities to take advantage of.

The liquidity pool you created contains ETH, BTC, and USDT, and the 0.2% fee on all trades is added to this pool. However, if there are no trades involving the new token, the price of the token will remain static and unchanged within this particular pool.

Arbitrage opportunities typically arise when the price of an asset diverges between different exchanges or liquidity pools. Traders exploit these price differences by buying the asset on the cheaper platform and selling it on the more expensive platform, effectively profiting from the price discrepancy. Without any trading activity on the new token, there is no room for such price differences to occur, and thus, there will be no opportunities for arbitrage trading.

To summarize, if nobody buys or sells the new token, the arbitrage trading effect between several liquidity pools will be negligible as there are no price differences to exploit. The price of the new token in the liquidity pool will remain unchanged until trading activity occurs.

  1. But with each trade, more and more tokens are burned in liquidity and the token becomes deflationary.*

ChatGPT: You are correct, and I apologize for not considering the deflationary nature of the new token in my initial response. If each trade involves a burning mechanism where a portion of the tokens is permanently removed from circulation, the token will indeed become deflationary.

In a deflationary token system, as more tokens are burned with each trade, the total supply of the token gradually decreases over time. This decreasing supply can potentially create some interesting dynamics in the liquidity pools and the token’s price, even if there are no direct buy or sell trades happening for the token.

Here’s how the deflationary mechanism might affect the liquidity pool and the potential for arbitrage:

  1. Liquidity Pool Impact: As more tokens are burned in each trade, the balance of the new token within the liquidity pool decreases over time. This reduction in supply can have implications for the token’s price in the pool.

  2. Price Change: With a fixed amount of ETH, BTC, and USDT in the liquidity pool, the proportion of the total pool value represented by the new token will gradually decrease as more tokens are burned. This can lead to a price increase for the new token relative to the other assets in the pool.

  3. Arbitrage Potential: If there are other liquidity pools or markets where the new token is tradable and the token’s price has increased in your original liquidity pool due to the deflationary mechanism, arbitrage opportunities may arise. Traders could potentially buy the new token at a lower price in other pools and sell it at a higher price in your deflationary liquidity pool.

  4. Risk and Market Conditions: The extent of arbitrage opportunities and their attractiveness to traders will depend on various factors, such as gas fees, liquidity depth, trading volume in other pools, and market sentiment.

It’s important to note that the above scenarios assume there are other active liquidity pools or markets where the new token is being traded. If the token is only present in your liquidity pool and there are no trades happening, the deflationary mechanism will indeed lead to a reduction in supply, but there will be no external factors affecting the token’s price or arbitrage opportunities.

In summary, the deflationary nature of the token can impact the liquidity pool and potentially create arbitrage opportunities between different pools if the token is traded elsewhere. However, the overall impact on the token’s price and arbitrage potential will depend on various market factors and trading conditions.

  1. So in this case the token price will slowly increase depending on the volume, right?*

ChatGPT: Yes, in the scenario you described with a deflationary token and a liquidity pool with no direct buy or sell trades of the new token, the token’s price will likely slowly increase over time, assuming there is some trading volume in other liquidity pools or markets for the token.

The deflationary mechanism, where a portion of the tokens is burned with each trade, reduces the total supply of the new token in circulation. As the supply decreases, and if demand remains constant or increases, the price of the token tends to rise. This price appreciation is a result of a decreasing supply relative to demand, which can create a scarcity effect.

However, it’s important to understand that the rate at which the token’s price increases will depend on several factors, including:

  1. Deflationary Mechanism: The percentage of tokens burned with each trade will affect the rate of supply reduction. A higher burn rate would lead to a faster decrease in the token supply, potentially driving more significant price increases.

  2. Trading Volume and Liquidity: The volume of trading activity for the token in other liquidity pools or markets will play a significant role. Higher trading volume can contribute to price movements, and greater liquidity depth can help absorb buy and sell orders without causing extreme price swings.

  3. Market Sentiment: General market sentiment and investor interest in the new token will influence demand. Positive sentiment and increasing interest may drive demand and support price appreciation.

  4. External Factors: The token’s price can also be affected by external factors, such as overall market conditions, regulatory developments, or news related to the token or its underlying technology.

Keep in mind that if there is little to no trading volume for the new token in other liquidity pools or markets, the price may not see significant movements, even with a deflationary mechanism in place. Additionally, token prices in decentralized liquidity pools can be influenced by various factors, and the market can be subject to sudden fluctuations.

Overall, while the deflationary nature of the token may contribute to a gradual increase in its price, other market factors and trading activity will play essential roles in determining the actual price movements.

Ok. So lets Test it.
Smart Contract links: [(OIL | Address 0x83cebaae144ab323b3505214cc26101968e4d75d | BTTCScan)]
Project Milestones: [Liquidity is generate on Intercroneswap, but i dont use BTC, ETH and USDT. I decided to use ICR_b, BTT and ETH. Other LPs should be added from the communtiy if the want support the test.

Logo: The Logo was AI design with a Text to Picture generator with the Text: Oil Token is a fun community project that starts on the BTTchain and runs like clockwork. You can find this Text also in the smart contract Code. ]


Welcome to hackaTRONs5 !
From what I’ve understood by your submission here, OIL is a deflationary token with an opportunity to arbitrage. So, now I am wondering how your project goes under the AI category? I think it should be in DeFi. Also, how your token is different from already many deflationary token out there with the similar arbitrage trading options?


i thougt about to use AI because with this project is a test what the AI (ChatGPT) confirm.
also the Logo was generated with AI support. I think there is a similar AI supported project on ETH called Turbo

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Hello Oil token project, welcome to Tron Hackathon session 5.
All the best to your project.

Quick question:-

is oil token project fully AI made? Or it only the logo AI generated for the project?


i also think there is any difference in deflationary token what make big differences. Until now most deflationary token are TAX token. The TAX reduce the supply or split the supply in different wallets.
The Benifits of a deflationary LP-Burn token is that the liquidity will grow constantly and user don’t need to be afraid that the cant sell there token anymore.


The Logo is AI made. The Token is a standard BRC 20 Token, limited to 21M OIL Token.
We confirm already with a livetest what the AI explain. You know its always a difference between theory and practice. Maybe I don’t know everything correct. We will see.


Is oil token affiliated to ICR ?
Is there any utilities to back up oil token apart from arbitrage?

Am yet to wrap up why the oil token is in the AI track , do you have any reason for the decision?

Thank you and welcome to Grand Hackathon Season 5


Oil Token is not affiliated to ICR. Oil token is what is : “Oil Token is a fun community project that starts on the BTTchain and runs like clockwork.”

Since the Token will get more and more liquidty (if ChatGpt is right) you can utilice this token for everything you want.

maybe to aks chatGPT in season 6 what we can built to improve the OIL Token environments


I think @BigDealCompany Michael elder I know is from the ICR team or maybe am mistaking,… all the same I wish you all the best


The AI category is for the projects using AI with implementation of BitTorrent Chain or the TRON blockchain. Just using AI to test and generate the project logo disent qualify for it to be in the AI category, IMO.

Yes this is how most deflationary tokens work. What I am asking here is how OIL is diffenerent from the other deflationary tokens?

This is generally how it works.


What’s your opinion in which track we should apply

You are welcome to S5, a little confused here. A lot of my mates are asking the same question, what makes this fall under ai. Will any AI technology do the arbitrage trading?


Well, I understand,
But still a pending clarification.
Is oil token project fully AI made
Or partly AI tools?


oh yes definitely. 99% of the arbitrage will be done from a computer. supported of a machine learning protocol the system will outomatic search on the blockchains form other Lps on other DEX.

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As I have mentioned in my first comment, i think OIL should be in DeFi

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okay I leave it to my other mates and judges. all the best team

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in support with this.

Perfect track for you

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its only part AI, would be say AI supported.

I will love to visit your website and learn more about how this works. So when done kindly alert me


We waiting more details and links
So we can read more to understanding
All about your project.

As you have answered, your project
Will be

All the best.
Keep building, be around to make
Clarification to the community members

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