đ Bonding Curve
The Bonding Curve is calculated using the formula đĽ Ă đŚ = đ. It works in the best traditions of AMM and meme launches. Tokens are created with virtual liquidity (bonding curve), and it is the investors who contribute to the liquidity pool (LP) through their buys and sells.
Initial parameters
The standard total supply is set as 1,000,000,000 tokens:
80% of the tokens are allocated for sale;
20% of the tokens are allocated for liquidity on listing
Once 80% of the total supply is sold by the curve progress, the market cap reaches 5.5 ETH , and the listing on Uniswap is initiated, so the remaining tokens + the collateral migrate to the liquidity pool. This event will be further called the liquidity milestone.
At the token launch, the virtual liquidity of 1.375 ETH will be accounted as a virtual collateral to form the standard bonding curve for the toke price:
x * y = k
x - token reserve
y - ETH collateral
k - constant that determines the curve
The k is calculated respectively:
k = Initial Token Reserve * Initial Virtual Colateral
(=> k = 1.375* 10^9)
Curve progression
The Bonding Curve progresses according to the classic formula xĂy=kx \times y = kxĂy=k. Trading continues until the collateral reserve liquidity reaches a value of 6.875 ETH (5.5 ETH from trades + 1.375 ETH from the initial virtual collateral). Upon reaching these values, the liquidity allocated for the Uniswap pool will be calculated as follows:
L-ETH: 6.875 ETH - 1.375 ETH (virtual collateral, which will be burned) - 0.5 ETH (platform listing fee) = 5 ETH.
L-TOKEN: Approximately 14.54% (145,454,545 tokens) of the 20% supply, as the remaining (~5.46% of the supply) tokens will be deducted from the initial pool to compensate for the burning of the virtual ETH collateral. This event will be further called a liquidity charge. It ensures that the listing price on Uniswap aligns with the final point on the Bonding Curve.
Initial token price: 0.000000001375 ETH (1.375/1000000000)
Listing price: 0.000000034375 ETH (5/145454545)
When the bonding curve collects 5.5 ETH, the token will be automatically listed on Uniswap with liquidity of ~ 5 ETH and 14.54% of tokens (0.5ETH reserved for uniswap LP creation fee). Furthermore, The LP will be burned and the Smart Contract will be renounced in the same transaction.
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