⚖️Liquidity Pool
What is virtual liquidity
When a token is created, it is worthless until added to a liquidity pool, which typically requires depositing Ethereum.
We address this liquidity issue with our "virtual liquidity concept." Each token created on MemeHunter will have a fixed supply of 1 billion tokens and 0.6-1.2 Virtual ETH in the pool (Depending on the Eth Price), referred to as the "carrier bag" on our platform.
This concept sets the initial market price of a token at 0.6-1.2 ETH, creating virtual liquidity equivalent to 2 times of ETH in the virtual reserve (since the value of all tokens is set to equal the value of ETH).
What happen when it is hitting Uniswap
After accumulating some transactions, our AMM contract, CarrierBag.sol, will hold Ethereum.
When the contract contains 4 times of Real Eth compare to Virtual Eth (ie: 1 Virtual ETH and 4 Real ETH from transactions) or has 200 million tokens left, it will activate the Uniswap process.
What is the Uniswap process
Our CarrierBag will then transfer all the accumulated ETH from transactions and 160 million tokens to Uniswap V3 (4/5 of token left within the pool)
Unlike other platforms that take a percentage of ETH or Solana (typically 5-10 Solana) during this process, we deposit all the ETH into the pool. We believe this approach is fairer as it prevents immediate dilution of the token price.
We store only 160 million tokens (instead of 200 million) or 4/5 of total token left, to maintain the token's price stability when they are moved to Uniswap, because the real ETH in the pool is only 4/5 out of the reserve because 1/5 is virtual ETH. This strategy discourages dumping before the Uniswap transfer, as there is no incentive for it. Check Calculation Below
Calculation for fullfilling the bag
The initial market cap will be set around 2800-3200, this is done so, by adjusting virtual ETH reserve to current price of Ethereum per 1 billion coins. after 80% of the supply being sold, there will only be 20% token remaining which is 200 Million, with amount of Real Eth accrued is 4 Times of virtual ETH. which will resulted Market Cap around $70000-$80000
Uniswap seeding scenario
One of the challange of migrating to uniswap is maintaining the price, since the pool of ETH in our platform consist of virtual ETH and real ETH. Although we are preceeding all of the real ETH accrued during the process, the price still wont be the same, if we just preceed if all of the coin is seeded.
This is even more problem, if the platform taking 5-10 Solana during migration process, like other platform does untransparently.
So we run scenario and choose the first path.
In order to choose the best path for all, we decided to choose first path, to discourage dumping before uniswap, since its provide no value to them.
What do we do with 40 million token
We haven't fully decided what to do with the 40 million tokens, but some options we are considering include:
Burning the tokens.
Keeping them for a while and use them to reward our users by exchanging them for bullet points.
One thing is certain: we will not take these 40 million tokens as profit, as we believe that would be unfair to our users.
Locked LP Token
Did you know that LP providers can earn rewards by providing liquidity? Typically, they receive 0.1-1% in Uniswap V3 and 0.25 in V2, from the transaction volume generated by users.
Many platforms burn these LP tokens, essentially destroying potential earnings and rewards for the community.
While we understand the importance of maintaining trust by ensuring LP isn't pulled, we believe burning LP tokens isn't the only solution. Instead, we propose locking LP tokens as the best approach. This allows us to maintain community trust while still being able to claim rewards from Uniswap.
These rewards will be utilized for our revenue, developer incentives, and most importantly, giving back to the community. We prioritize community rewards.
We plan to lock the tokens with trusted partners such as UCNX and others.
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