Scarcity (SCX) is the native ERC-20 token for the Behodler AMM. SCX is a deflationary form of an index tracking token. Not only does it represent liquidity of the AMM but in sideways markets it gains value through regular burning.
SCX governs swaps between listed tokens. Its bonding curves allow the entire AMM to exist in one smart contract, which is uniquely gas efficient. The swapping algorithm between 2 tokens has been simplified so that the minting and burning of SCX is just implied in the maths.
SCX is universal. For example, you can mint SCX with ETH and then redeem DAI with it. There are no pairs in Behodler, all the tokens exist in one contract, and all trades are routed through the universal liquidity token, Scarcity.
SCX is generated along a logarithmic curve.
SCX is issued to the user according to a token bonding curve when adding liquidity. When you send Scarcity back to Behodler, it is burnt and you can signal which token you wish to receive in return. Each token has its own token bonding curve which means each token has its own price in Scarcity. This is where the omnischedule part of the token bonding curve comes in.
When selling Scarcity back to Behodler a small fee is levied and burnt. The remaining Scarcity is then used to redeem the token in question. This small friction leads to gradual growth in the pool of ALL tokens. The value of Scarcity rises in this way because the amount of any token that Scarcity can be redeemed for gradually increases with every trade. Unlike multi-token liquidity pools, there is minimal impermanent loss. Instead, frequent trading will gradually grow the liquidity base and increase the value of the Scarcity token as measured in the basket of underlying tokens.
Scarcity is a fee on transfer (FOT) token when transferred outside of Behodler. A portion of the fees levied are sent to Morgoth DAO, and a portion is burnt. This gradual SCX burn forces Behodler's liquidity floor to rise over time.