The bonding curve

Before a coin graduates, every trade goes against a bonding curve inside the launchpad contract. There is no order book and no liquidity provider. The curve is the counterparty.

Supply

Every coin has exactly 1,000,000,000 tokens. There is no mint function.

• 800,000,000 go on the curve for sale.
• 200,000,000 are reserved for the graduation pool.

The formula

The curve is a constant product with virtual reserves, the same family of formula Uniswap uses, but with a pretend starting balance so the first buy is not free:

x = virtualEth   + ethReserve
y = virtualToken − tokensSold
x × y = constant

Defaults: virtualEth is 1.333 ETH and virtualToken is 1,066,666,667 tokens. Those two numbers were chosen so that the curve sells out at a round figure.

Raised at sell-out: 4 ETH. Price rises 16× across the curve.

Buying and selling

• A buy pays the opening tax (if any), then the 1% trade fee and the creator tax (if any), then the rest goes into the curve and tokens come out.
• A sell puts tokens into the curve, ETH comes out, and the fee and creator tax are taken from that ETH.
• Every trade takes a minimum amount out and a deadline. If the price moved past your slippage or the deadline passed, the transaction reverts and you keep your funds.
• The last buy that would overshoot the sell-out is clamped to exactly what is left, and the excess ETH is refunded in the same transaction.

Rounding always favours the curve by a wei, so the contract can never be drained by dust.

Coins priced in a stock

A coin can be priced in a tokenized stock instead of ETH. The math is the same; only the unit changes. The curve is sized at launch so that sell-out equals about 10,000 US dollars of that stock at the moment of creation, using a Chainlink price feed. See Stock pairing.

Progress

The site shows "percent to graduation". That is simply tokens sold divided by 800 million. The ETH figure next to it is the ETH in the curve against the 4 ETH sell-out target.