Traditional token selling faces a fundamental challenge - the larger the sale, the worse the price becomes. But ungluing tokens through Glue works differently. Whether redeeming 1% or 99% of the supply, each token claims exactly the same amount of collateral. No slippage, no price impact, no harm to other holders.
This perfect pricing mechanism creates true capital efficiency. Large holders can exit their full position in a single transaction without moving the market. Teams can realize value from their tokens without affecting trading price. The redemption value remains mathematically constant regardless of size.
One of Glue's most powerful features is its perfect price equality across all redemptions. The first holder to unglue receives exactly the same collateral per token as the last. If a protocol has 1 million tokens and 1000 ETH in its Glue, each token is worth 0.001 ETH - whether ungluing 1 token or 999,999.
Even in extreme scenarios where 99% of holders unglue their tokens, the last holder keeping just 1% of the supply still has claim to their exact share of collateral. This creates unprecedented fairness and predictability in value capture. No front-running, no race to exit, just mathematical certainty.
Glue introduces a groundbreaking innovation in flash loans - the ability to borrow simultaneously from multiple Glues at the lowest fees in DeFi. Traditional protocols must charge high fees to attract liquidity providers. Glue doesn't need this incentive structure because its TVL comes from natural project revenue.
This enables flash loans at just 0.01% fee - a fraction of traditional rates. A trader could borrow millions in assets across dozens of Glues, paying minimal fees while having access to far more liquidity than any single protocol could provide. This creates a new paradigm for capital-efficient trading and arbitrage.
Flash loans in Glue work on a massive scale - borrowing is possible from every single Glue that exists in the ecosystem. Any ETH or ERC20 token locked in any Glue becomes available for flash loans. The more projects adopt Glue and lock assets as backing, the larger this borrowable liquidity pool becomes.
This creates a naturally expanding source of flash loan liquidity. Each new project that adopts Glue, each fee that gets locked, each bit of revenue that becomes backing - all of it automatically adds to the pool of borrowable assets. The growth of the Glue experiment directly translates to more borrowing power for the entire ecosystem.
Through these mechanisms - perfect redemption pricing, fair value for all holders, minimal flash loan fees, and ecosystem-wide liquidity access - Glue achieves unprecedented capital efficiency. Projects can lock their revenue as backing without sacrificing its utility. Traders can access massive liquidity at minimal cost. Holders can exit at mathematically fair prices regardless of size.
This is how DeFi should work - where capital serves multiple purposes simultaneously, where fees reflect true costs rather than incentive requirements, and where value can be realized without harming other participants. Glue's capital efficiency isn't just an improvement on existing systems - it's a fundamental rethinking of how capital should work in DeFi.