FEG's base price pool is the core asset safeguard mechanism built into its SmartDefi protocol. Its primary function is to provide value backing and price support for tokens issued based on the protocol, preventing token prices from falling to zero and thereby protecting investors' assets. The following details are explained from three aspects: core attributes, operational mechanisms, and core functions:

Core Attributes
Clear Asset Backing: The base price pool reserves mainstream crypto assets such as BNB, ETH, or stablecoins. These assets serve as the value support for the corresponding tokens, ensuring that every token issued under the SmartDefi protocol is backed by real assets rather than worthless tokens.
Decentralized and Transparent: It is embedded within the SmartDefi protocol contract, not managed by any third party, preventing the risk of project teams or third parties misappropriating pool assets. Additionally, data related to the base price pool is publicly accessible on the blockchain. Investors can compare market prices and base prices, including premium data, to assess investment risks before trading.
Operational Mechanisms
Continuous Asset Injection: Project deployers can pre-configure a fixed percentage of funds from buy and sell transactions that flow into the base price pool. After each related token transaction is completed, the set percentage of transaction tax automatically flows into the base price pool. Moreover, FEG has a deflationary mechanism where 0.2% of transaction funds are automatically used to buy and burn FEG tokens. The assets corresponding to burned tokens are returned to the base price pool; additionally, the assets from burned tokens in the black hole address are redistributed to tokens in circulation, further driving up the base price. Thanks to the fWrap dividend mechanism within the FEG ecosystem, even if the token has no trading volume, the assets supported by fWrap in the base price pool will passively increase.
Collateralized Lending Linkage: The base price pool is also connected with an interest-free lending feature. Investors can collateralize their holdings of tokens issued under the SmartDefi protocol to borrow supporting assets from the base price pool at a proportional rate. Borrowing is based on the base price pool's price rather than third-party market prices, avoiding oracle attack risks. After repaying the loan, users can redeem their tokens. If they do not repay, the collateralized tokens will be automatically burned, which does not affect other investors' interests.
Core Functions
Price Floor for Tokens: This is the most critical function of the base price pool. Due to the continuous inflow of assets, the token's baseline value will only rise, not fall. When the market price drops below the baseline, investors can burn tokens to withdraw the corresponding supporting assets from the base price pool for arbitrage. This arbitrage mechanism encourages the market price to return near the baseline, ensuring that the token price is almost never lower than the price corresponding to the base price pool, fundamentally preventing tokens from becoming worthless.
Enhancing Investor Confidence: On one hand, the price support mechanism of the base price pool eliminates investors' core concerns about significant depreciation or even zeroing of tokens; on the other hand, the permanent locking characteristic of liquidity pool funds prevents project teams from withdrawing and running away with the pool. These features greatly enhance investors' willingness to hold and invest in projects issued under the SmartDefi protocol.