how launches work
Every coin begins the same way, with the same supply and the same curve. No one gets a better deal for being the creator.
the bonding curve
A new coin trades against a constant-product bonding curve, priced in HYPE. The curve holds virtual reserves so that the first trades are not infinitely expensive:
x * y = k
x = virtual HYPE reserve
y = virtual token reserve
price = x / y
| parameter | value |
|---|---|
| total supply of every coin | TBD (testnet simulation: 1,000,000,000) |
| portion sold on the curve | TBD (testnet simulation: 80%) |
| starting virtual HYPE | TBD (testnet simulation: 120 HYPE) |
| starting virtual tokens | TBD (testnet simulation: 1,073,000,000) |
| launch fee | TBD (testnet simulation: 0.1 HYPE) |
buying
For a buy of h HYPE, fees are taken first, then the remainder is swapped:
net = h * (1 - fee - platformFee)
tokensOut = y - k / (x + net)
selling
For a sale of t tokens, the swap happens first and the fees are taken from the HYPE that comes out:
gross = x - k / (y + t)
hypeOut = gross * (1 - fee - platformFee)
graduation
A coin graduates when the HYPE raised on its curve reaches the graduation threshold: TBD (testnet simulation: 420 HYPE).
At that moment the coin is fired:
- The curve closes. No more trades happen against it.
- The raised HYPE and the remaining tokens are deposited into a DEX pool on Elysium.
- The liquidity position is locked or burned, so it cannot be pulled. The exact mechanism is TBD until contracts are published.
- The coin becomes a god: other coins can now choose to make offerings to it.
where the liquidity goes
Liquidity goes to a DEX pool on Elysium. The venue is TBD. PITHOS does not keep the liquidity and takes no allocation of the coin.
what the fee does after graduation
The creator's fee and four-road split keep working after graduation. Trades in the pool still pay the coin's fee and still send offerings to its god. How this is enforced on the pool side depends on the chosen DEX and is TBD.