Bonding Curve
The bonding curve is the initial trading mechanism for a newly launched IFT, designed to establish fair and transparent price discovery and minimize trading slippage.
Algorithmic Pricing: Tokens are minted or burned algorithmically based on demand:
As users buy IFTs, the price increases along a predefined mathematical curve.
When users sell, tokens are burned, and the price decreases accordingly.
Fair Distribution: The bonding curve ensures:
Zero Presale: No tokens are reserved or sold before launch.
Zero Creator Allocation: Creators must purchase tokens like any other participant, ensuring fairness.
Permissionless Access: Anyone can trade the IFT without restrictions.
Transition to AMM: When the token’s market cap reaches a predefined threshold, liquidity is migrated to a Uniswap v2 pool. This transition can be triggered by any user and is automated to ensure seamless market access.
Last updated