search
Page cover

money-bill-trend-upTrading on flip.meme

hashtag
Trading on the bonding curve

Now that your collection is on the market, traders will start trading it on a bonding curve*.

circle-info

*Bonding Curve

A bonding curve price model is when the price of a token increases as more people mint it. This means earlier buyers buy cheaper than later buyers.

Note that the bonding curve only applies during minting. Once sold out (ie when the bonding curve reaches 100% completion), the token is available to trade on decentralized exchanges.

This model is widely used for memecoins on platforms such as pump.fun.

hashtag
Liquidity Pools

  • Buying fills the liquidity pool* with SOL

  • Selling to the liquidity pool withdraws the SOL and fills it with memecoins

Because the liquidity pool is constantly being filled with funds, the possibility to trade against the pool is possible instantly, and at any time.

If you are buying, you don't need to wait for a seller. If you are selling, you don't need to wait for a buyer.

circle-info

*Liquidity Pools

flip.meme uses dedicated Liquidity Pools for each collection.

When a trader buys a collectable memecoin on the bonding curve, the money from the purchase is sent into the Liquidity Pool.

On the contrary, when a traders Flips (sells) a collectable, the money is pulled from the LP and the memecoin is sent into the Liquidity Pool.

hashtag
Creator Incentives

The Creator of a collection:

  • Can buy before anyone else on the Bonding Curve using flip.meme’s Pre-Mint feature. This ensures the Creator to flip for profits as users buy his collection on the Bonding Curve.

  • Receives a % of the Liquidity Pool when the collection sells out (ie when Bonding Curve reaches 100% completion).

  • Receives Creator Points whenever someone trades on his collection, allowing him to accumulate FLIP POINTS for the upcoming $FLIP airdrop

hashtag
Secondary Market

Once the collection sells out (ie the Bonding Curve reaches 100% completion), the collection is automatically tradable on the secondary market.

At this point, the Liquidity Pool is entirely emptied and follows the following distribution:

  • A majority of the SOL contained in the LP are used for liquidity on the secondary market: this not only provides the necessary initial liquidity for the collection to be easily tradable, but it also establishes a strong floor price.

  • A small portion of the LP is kept by flip.meme as sell out fees

  • A small portion of the LP is given to the Creator as a reward for leading a successful sell out

Last updated