# How our token works?

**1. Tokenization of Derivative Contracts:** Our process begins by acquiring derivative contracts of lithium in [CME](https://www.cmegroup.com/es/), the biggest and most liquid market of these kinds of assets. As soon as we are holding the assets, we get exposure to the lithium price, and later we create digital tokens on the blockchain that track the price of the assets within a 5% spread range.

**2. Price Stability:** To ensure the stability of our Lithium Token's value, we've established strategic partnerships. Our collaboration with [ChainLink](https://chain.link/), a renowned OnChain oracle, guarantees real-time and accurate data feeds, anchoring the token's price. Additionally, our alliance with [Fast Markets](https://www.fastmarkets.com/), a trusted price market provider, reinforces the reliability of our token's valuation thanks to the API that they gave us to track the real-time price. **Each day at 13.30 London Time, we automatically publish on our website the price of each LTH token for redemption. Whenever you want, you can deposit your tokens and ask for the corresponding amount of stablecoins.**\
\
\&#xNAN;***`RULE: If our oracle detects that the price of the token is above or below the price of Lithium in the real world, we automatically sell or buy more derivative contracts to mint or burn tokens.`*** \
***`Using that system, we avoid any deppeg.`***

**3. Sell those tokens via Launchpads, DEXs, and CEXs:**

After acquiring derivative contracts of lithium and tokenizing them, the next step in our process involves making these tokens available for investment. This is achieved through multiple avenues, namely Launchpads, Decentralized Exchanges (DEXs), and Centralized Exchanges (CEXs).

**3.1 Launchpads:** Launchpads serve as platforms that facilitate the initial offering of tokens to the public. They are particularly advantageous for emerging projects like BlockLit, providing exposure to a broad audience of potential investors. By listing our Lithium Tokens on reputable launchpads, we enable early adopters and enthusiasts to participate in the lithium market from the outset.

**3.2 Decentralized Exchanges (DEXs):** DEXs operate on blockchain networks and allow users to trade tokens directly with one another, without the need for intermediaries. Listing our Lithium Tokens on DEXs enhances accessibility, as anyone with a compatible wallet can trade the tokens. This decentralized approach aligns with our mission of inclusivity and ensures that the trading process remains transparent and secure.

**3.3 Centralized Exchanges (CEXs):** CEXs are traditional exchanges where users can trade various cryptocurrencies and tokens. Listing our Lithium Tokens on reputable CEXs expands the reach of our project to a wider investor base, including those who are accustomed to trading on centralized platforms. CEXs offer features like advanced trading tools and liquidity, making them attractive to a range of investors.


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