# ⚙️ Yield & Harvest

The Yield Engine is the heart of the burn. Unlike projects that rely on "hope," we rely on math and high-efficiency DeFi.

#### The Yield Engine: Pharaoh Exchange Strategy

The Lil-Burn treasury is a high-efficiency capital engine designed to drive the "Final 100" mission. By deploying **90% of all mint funds** into the premier liquidity layer on Avalanche, we create a self-sustaining cycle of floor sweeps and ecosystem rewards.

#### Phase 1: Capital Deployment & Governance

Following the 1,000 NFT mint, the treasury executes a strategic deployment into the Pharaoh Exchange ecosystem:

1. **Strategic Swap**: 90% of $AVAX mint funds are converted into **$PHAR**.
2. **$xPHAR Conversion**: All acquired $PHAR is committed to the **xPHAR governance layer**, securing a long-term, yield-bearing position.
3. **Autovault Staking**: The xPHAR is staked in Pharaoh’s **Automated autovault**, maximizing yield while eliminating manual management.

#### Phase 2: The Bi-Weekly Harvest

Utilizing Pharaoh’s advanced reward-routing, the Lil-Burn treasury claims all protocol emissions and fees in **native $AVAX**. This creates consistent buy-pressure for our ecosystem without selling our own assets.

Every 2 weeks, the harvested yield is distributed via our **Strategic Split**:

<table data-header-hidden><thead><tr><th width="111.859375"></th><th width="160.04296875"></th><th></th></tr></thead><tbody><tr><td><strong>Allocation</strong></td><td><strong>Destination</strong></td><td><strong>Purpose</strong></td></tr><tr><td>🔥 80%</td><td><strong>The Purge Fund</strong></td><td>Used exclusively to sweep the floor of Lil-B NFTs. This is the primary engine driving us toward the Final 100.</td></tr><tr><td>🐓 5%</td><td><strong>Lil Coq Rewards</strong></td><td>Injected into the reward pool for Lil Coq NFT holders, boosting yield for our original community.</td></tr><tr><td>💎 5%</td><td><strong>$LIL Staking</strong></td><td>Added to the $LIL staking pool, rewarding long-term believers in the native ecosystem token.</td></tr><tr><td>🛡️ 10%</td><td><strong>Team Treasury</strong></td><td>Allocated to fund future development and Lil-Ecosystem operations.</td></tr></tbody></table>

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THE ECOSYSTEM FLYWHEEL

By diversifying the harvest, Lil Burn becomes a "Yield Aggregator" for the entire ecosystem. As we move closer to the Final 100, the concentrated yield not only benefits the survivors but strengthens the floor of $LIL and Lil Coq simultaneously.
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#### The Endgame Transition

Once the supply reaches the **Final 100**, the "Purge Fund" allocation is retired. The 80% yield previously used for floor sweeps is redirected directly to the **Final 100 Elite** survivors in native $AVAX, transforming the project into a perpetual yield-bearing asset for those who outlasted the burn.

#### Strategic Rationale

* **Non-Dilutive Deflation**: We use external $AVAX rewards to buy and burn Lil-B NFTs.
* **Elimination of Impermanent Loss**: By choosing xPHAR over traditional Liquidity Provision (LP), the treasury is not exposed to "IL." By holding xPHAR, our principal remains 100% intact, ensuring we capture the full value of our $PHAR position while harvesting $AVAX yield.
* **Capital Efficiency**: The autovault ensures our staked position is always optimized for the highest possible emissions, providing a steady stream of $AVAX for the bi-weekly Purge.