Bonding Curve and Liquidity Deployment
On SpookySwap’s Launchpad, tokens are traded using a linear bonding-curve mechanism embedded within a smart contract to simplify the user experience.
How the Bonding Curve Works
- Dynamic Pricing Model — Price adjusts automatically with each buy/sell along a linear curve. Early buys are cheaper; later buys are progressively higher.
- Built-in Liquidity — The contract itself holds inventory and quotes both sides (buy/sell) at curve prices, acting similarly to a constant-liquidity market maker without a separate pool.
- Visual Representation — Users can see the curve and their slippage/price impact directly in the Launchpad UI for immediate insight into price movement.
Transition to Initial Liquidity Deployment
Once a token’s market cap reaches 75K S, the bonding-curve mechanism migrates into a standard DEX liquidity pool. This step:
- Seeds the initial LP with the contract’s inventory and proceeds.
- Establishes on-chain price discovery within the DEX.
- Provides a more familiar trading environment while preserving continuity from the curve stage.
By utilizing a bonding curve, SpookySwap’s Launchpad ensures a fair, transparent price-discovery phase that flows smoothly into a robust DEX liquidity framework—benefiting both creators and investors.