⚖️List On DEX
Last updated
Last updated
Each token launched on flap has a maximum supply of 1 Billion. When a token reaches the milestone to be listed on the DEX, the remaining supply (non circulating) tokens and all the reserve (i.e., the quote token, e.g., ETH/BNB) will be added as liquidity to DEX.
For different deployment, the milestone to be listed on DEX is different. In previous section ( ), we know that the reserve of a token can be found by its circulating supply. So we can represent the milestone to be listed on DEX in either circulating supply or reserve. We list both of them in the following table:
| Deployment | Circulating Supply | Reserve |
|---|---|---|
BSC (Legacy before block #42042177 ) | 800M | 30.1 BNB |
BSC (latest since block #42042177) | 800M | 16 BNB |
1ETH | 500M | 1 ETH |
Let's take a look at the BSC latest deployment as an example. The purple point is the milestone when the token can be listed on the DEX, which is a circulating supply of 800M, or a reserve of 16 BNB or a market cap of 100 BNB. When the token reaches the milestone, it will be listed on DEX. If we are adding this token to Uniswap V3 (or its fork, e.g, PancakeSwap V3), the reserve (16 BNB) and the remaining token (200M) will be added as liquidity. Besides, the Flap protocol is flexible and allows more token to be sold on the bonding curve. For example (the red curve on the following graph), if the last buyer buys a lot of token on the bonding curve, the resulting circulating supply would be 900M , and the reserve will be 36 BNB giving a market cap of 400 BNB. The token will still be listed on DEX with the remaining 100M token and 36 BNB reserve.
We will first try to add liquidity to Uniswap V3 (or its fork). If it is not viable, we will fallback to Uniswap V2 (or its fork).
When adding liquidity to Uniswap V3, we only add liquidity to a concentrated range of prices, giving the token a better depth. The lowest price is the initial price on the bonding curve (i.e., the price when no one has bought the token yet), the current price is the last price on the bonding curve before the token is listed on DEX, and the max price is 100 times of the current price.
There is a constraint on Uniswap V2 and its fork: the price is determined by the amount of both the quote and base tokens you add as liquidity. We cannot fix the price but are also able to add all the reserve and remaining tokens to a Uniswap V2 pool.
If we add liquidity to the Uniswap V2 pool, we add all the reserves but only part of the remaining token supply as liquidity.
To understand why, let's take a look at the graph below. The blue curve in the graph below is the price curve on our bonding curve, and the red curve is the price on Uniswap V2 if we add all the reserve and all the remaining supply of tokens to a Uniswap V2 pool. As you can see, the price on Uniswap V2 is always lower than the price of the bonding curve.
It's crucial to understand that when we add liquidity to the Uniswap V2 pool, we're at risk of a potential price drop. To avoid this, we add all the reserves but only part of the remaining token supply as liquidity.
