📈Bonding Curve and Liquidity Deployment

At Degen Express, tokens incubated on our platform are bought and sold using a linear bonding curve, a unique approach that differs from traditional liquidity pools found on decentralized exchanges (DEXs). Think of this as a "virtual" Uniswap v3-style Automated Market Maker (AMM) embedded within a smart contract, offering a streamlined experience for users.

How the Bonding Curve Works

• Dynamic Pricing Model: The bonding curve adjusts the token price dynamically based on market activity. As tokens are purchased on Degen Express, the price for the next buyer increases. Conversely, if someone sells their tokens, the price for subsequent buyers decreases. This mechanism creates a predictable price action that mirrors the experience of trading in a DEX’s liquidity pool, but without the need for an external liquidity pool.

• Visual Representation: Users can easily visualize the bonding curve on each token's dedicated page, providing transparency and insight into the current pricing dynamics.

Transition to Initial Liquidity Deployment

The bonding curve remains active until the market cap of a token reaches $75,000. Once this threshold is met, the following occurs:

• Initial Liquidity Injection: At this point, $12,000 of initial liquidity is deployed onto Equaliser. This liquidity infusion ensures that a foundational level of trading capability is established for the token.

By leveraging the bonding curve mechanism, Degen Express fosters an efficient and equitable trading environment, ensuring that every token launch is supported by a sustainable liquidity model that benefits both creators and investors.