Liquidity Pools & Arbitrage
Liquidity pools are essential for any project.
Larger pools help reduce price volatility.
A diverse set of pools increases trading opportunities.
And having multiple well-funded pools can create arbitrage opportunities.
Arbitrage occurs when a bot takes advantage of a price difference between two pools.
To keep it simple, the bot buys IMG in Pool A at one price and sells it in Pool B at a slightly higher price, capturing the difference as profit.
For IMG, we’re continuously creating new liquidity pools and strengthening existing ones.
Our goal is to improve market structure while encouraging more arbitrage activity, which ultimately generates additional trading volume.
We’re working toward a virtuous cycle:
More volume → More fees collected → Bigger rewards & more funding for the Infrastructure Wallet → More compounding & more liquidity added to pools → More arbitrage & more routing through IMG pools → More volume
That’s the flywheel we’re building.
One thing that makes IMG stand out from most reward tokens (apart from being one of the originals) is that liquidity providers in eligible pools continue earning rewards while supplying liquidity.
There is currently a list of eligible Raydium pools, and our development team is actively working to support Meteora pools as well.
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Why is arbitrage more difficult with IMG?
As a transfer-fee token, IMG doesn’t generate as many arbitrage opportunities as tokens without transfer fees.
The math is straightforward.
When you buy IMG, you’re charged a 5% transfer fee.
When you sell, another 5% transfer fee applies.
For example:
If you buy 100 IMG, you receive 95 IMG.
When those 95 IMG are sold, approximately 90.25 IMG are transferred after the second fee.
That represents roughly a 9.75% effective difference before considering anything else.
You also need to account for:
• Gas fees
• Price impact (slippage)
In practice, a price difference of roughly 12% between two IMG pools is generally needed before an arbitrage opportunity becomes worthwhile.
That doesn’t happen very often.
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Building Our Own Arbitrage Layer
To increase opportunities, we’re creating liquidity pools paired with high-volume assets so arbitrage can be routed through those markets.
And because many third-party arbitrage bots avoid transfer-fee tokens altogether, we built our own.
Our arbitrage bot exclusively monitors IMG pools across Raydium and Meteora.
Whenever it detects an opportunity—whether intra-DEX (for example, Raydium Pool A ↔ Raydium Pool B) or inter-DEX (Raydium ↔ Meteora)—it executes the trade for a small profit.
The arbitrage bot is already live and periodically generates additional trading volume for the ecosystem.
Our development team is actively expanding support for additional pool types.
At the moment, the bot supports:
• Raydium CPMM
• Meteora DAMM V2
More features and improvements are already on the way.
@Irial_OS
Reward System
IMG is a Solana Token-2022 SPL token.
This standard allows a token to apply a transfer fee (tax) to every transaction.
IMG has a 5% transfer tax.
Unlike many other blockchains, Solana works differently.
Transfer fees are not sent directly to a specific wallet. Instead, they are withheld by token accounts until they are withdrawn by the authority wallet (what we commonly call the Rewards Wallet).
The first piece of our ecosystem was building the infrastructure to automatically call the withdraw function and collect all accumulated fees into the Rewards Wallet.
Once collected, the fees are swapped into SOL.
This process runs every hour.
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Reward Distribution
So what happens to those fees?
Every 6 hours, we distribute rewards to holders.
We retrieve all eligible holders directly from the blockchain, along with liquidity providers from eligible pools.
Rewards are then distributed proportionally based on each participant’s holdings.
To be eligible, a wallet must currently hold at least:
• 50,000 IMG
• 0.002 SOL
Rewards are automatically sent once a holder accumulates at least 0.0001 SOL.
The reward calculations happen off-chain, so we also keep track of pending rewards in our database.
This allows holders who haven’t yet reached the payout threshold to continue accumulating rewards without losing anything.
While we could run distributions more frequently, doing so would create additional transaction fees without providing meaningful benefits at current trading volume.
As volume grows, we may adjust the distribution schedule.
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Fee Allocation
Are all collected fees distributed to holders?
Short answer: No.
We also maintain two additional wallets:
• Infrastructure Wallet
• Incinerator Wallet
During weekdays:
• 50% → Holders
• 40% → Infrastructure
• 10% → Incinerator
On weekends:
• 80% → Holders
• 10% → Infrastructure
• 10% → Incinerator
Every day, the Incinerator Wallet uses the received SOL to buy IMG directly from the market and permanently burn those tokens.
This makes IMG a deflationary asset.
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Infrastructure
The Infrastructure Wallet exists to strengthen the ecosystem.
Recently we’ve used it to:
• Add liquidity to existing pools
• Create new liquidity pools
• Support healthy market structure
• Increase arbitrage opportunities
• Run community contests and volume events
Every decision is made to strengthen the network over time.
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System Improvements
We’ve significantly improved the reward system over the past several months.
New resilience features ensure the system continues operating smoothly, even during blockchain or RPC interruptions.
If a reward batch ever fails, every pending reward is tracked internally to ensure nothing is lost or missed.
We’ve also introduced new systems such as the Incinerator.
In addition, we’ve optimized the distribution process, making it significantly faster than it was previously.
All of these improvements are designed to ensure the system can scale efficiently as the holder base and trading volume continue to grow.
⸻
Looking Ahead
Our development team is continuously building new pieces of the IMG ecosystem.
The reward system is the foundation of everything we do.
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It’s a central piece of the network.
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