Degen

1/
$DEPE on Degen L3 isn't available on DEXs like 
degenswap, unlike other tokens.

That is because it is minting in a bonding curve pool instead of trading on a traditional DEX.

Let me explain.

Founder @shoalresearch | prev @coinbase Listings, @uber, @ucberkeley ΑΦΑ

3/
The bonding curve

A bonding curve is a mathematical model for pricing digital assets based on supply. Essentially, when more tokens are issued, the pricing for the token increases based on a curve determined by the issuer.

more supply (buys) = more expensive

4/
Minting & Burning

Using 
@MintClubPro
 token bonding curve, when tokens are bought from the platform they are minted from the ERC-20 contract in exchange for $DEGEN. When tokens are sold they are burned for $DEGEN.

Minting = Buying the Asset
Burning = Selling the Asset

5/
Rewarding Timing

Since tokens earlier in the curve are cheaper, early participants are rewarded in more tokens by minting the tokens earlier. Ultimately, the token will stop minting tokens when the bonding curve reaches the end of the curve and tokens are "sold out".

6/
Some issues

On pumpdotfun liquidity is automatically migrated to an AMM (Raydium) after a certain market cap is hit. On MintClubPro the liquidity stays in the bonding curve making it hard to move to AMM since new $DEGEN needs to match with minted tokens in a liquidity pool

7/
Some issues continue...

Fragmented liquidity will cause price discrepancies on AMMs since most of the liquidity is in the bonding curve and not in AMMs, which use the constant product (x*y=k) pricing equation (Uniswap V2).

Basically, someone might pay more on AMM by accident

8/
$DEPE is a bit of an outlier when it comes to Degen L3 tokens since most are in an AMM, which can be integrated with pre-existing tooling on other chains:

- trading bots
- rug scanners
- charting tools

However, the $DEPE community remains strong (5k+)

8/
$DEPE is a bit of an outlier when it comes to Degen L3 tokens since most are in an AMM, which can be integrated with pre-existing tooling on other chains:

- trading bots
- rug scanners
- charting tools

However, the $DEPE community remains strong (5k+)
https://warpcast.com/~/channel/depe

9/
How do I participate ?

1. Need $ETH on Base
2. Add DEGEN to wallet RPC https://chainlist.wtf
3. Bridge Base $ETH to $DEGEN using https://bridge.degen.tips
4. Add DEGEN to wallet RPC https://chainlist.wtf
5. Swaps: https://dex.swapdegen.tips/#/swap
6. $DEPE: https://mint.club/token/degen/DEPE

fin/
This is not financial advice but an interesting journey around the inner workings of how the protocols work supporting the top tokens on the Degen l3.

Also, I own $DEPE and $DEGEN.

2/
Background

The asset bonding curve concept was introduced back in 2017 by Simon De La Rouvière. Then subsequently used by Bancor in 2018 and widely adopted thereafter. For the Solana Degens, this is also the same mechanism used on pumpdotfun.

Thank you for explaining. Any chance mintdotclub changes their model to the LP model? Is that even possible?

30 $degen

This Was SUPER Helpful, Thank You Ser! 

20 $Degen

Love it, a concise and precise explanation and analysis of the bonding curve & DEPE as a token. Took me a few hours of research to understand it. Glad to have come across this… 25 $degen

Thanks again and could I ask you about “Lock-Up” what is that for and the person who lock will get airdrop or something ? 🙏🏼
Thanks in advance.

Thank you for the explanation. 
$DEPE LFG