SpookySwap V3
  • Introduction
  • Main features
    • Swap
    • Fees
    • Concentrated Liquidity
    • V3 Farms
    • The Power of BOOs
      • Staking BOO
    • Oracle
    • NFTs / Magicats
    • Launchpad
      • Launching a New Token
      • Buying Launchpad Tokens
      • Token Security
      • Bonding Curve and Liquidity Deployment
      • Fee Structure
  • Getting started (how to guides + FAQ)
    • Accessing the SpookySwap App
    • How to connect your wallet
    • Bridging to Fantom Opera Network
    • How to Swap
    • How to Provide Liquidity
    • How to use V3 Farms
    • How to create a Community Farm
    • How to stake BOO
    • FAQs and Troubleshooting
    • How to Migrate BOO to SONIC
  • Miscellaneous
    • Roadmap
    • SpookySwap V2 and V3
      • Migrating Liquidity from SpookySwap V2 to V3
      • Token Integration issues
    • Resources
      • SpookySwap Contracts
        • Fantom Opera
        • Horizen EON
        • BitTorrent Chain
        • Sonic Mainnet
      • Token Addresses
        • Fantom Opera
        • Sonic Mainnet
      • Brand Assets
      • BrewBooV3 - Decentralized xBOO Buybacks
    • Glossary (common terms)
    • Contact us
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  1. Main features
  2. Launchpad

Bonding Curve and Liquidity Deployment

On SpookySwap's Launchpad, tokens are traded using a linear bonding curve mechanism, which is a variation from the traditional liquidity pools seen on other decentralized exchanges (DEXs). This model functions similarly to a "virtual" Uniswap-style Automated Market Maker (AMM), embedded within a smart contract to simplify the user experience.

How the Bonding Curve Works

  • Dynamic Pricing Model: Prices adjust automatically with each buy or sell transaction. Purchasing tokens increases their subsequent price, while selling decreases it, offering a predictable, market-responsive pricing dynamic akin to trading in a standard DEX liquidity pool—yet without the external pool.

  • Visual Representation: The pricing dynamics are clearly visualized on each token’s page, enhancing transparency and providing users with immediate insights into price fluctuations.

Transition to Initial Liquidity Deployment

Once a token’s market cap reaches 75K S, the bonding curve mechanism concludes with the deployment of the collected S tokens into SpookySwap’s liquidity pools, paired with your new token. This initial liquidity injection establishes a stable trading foundation, essential for the ongoing viability of the token.

By utilizing a bonding curve, SpookySwap's Launchpad ensures a fair and efficient trading environment, supporting successful token launches with a robust liquidity framework beneficial to both creators and investors.

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Last updated 4 months ago