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⚙️ How it works

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Bonding curve, state transition, and more​

When a new emojicoin launches, its trading mechanics are dictated by a bonding curve where the price of the emojicoin is a function of circulating supply. Specifically, the bonding curve is implemented as a concentrated liquidity automated market maker (CLAMM) with a single price range.

Once the market capitalization of the emojicoin reaches 4,500 APT, the APT in the CLAMM is burned into a constant-product automated market maker (CPAMM), along with emojicoin reserves set aside at the market launch. This mechanism ensures ample liquidity after the state transition, and a constant price throughout the state transition. Moreover, after the bonding curve state transition, anyone can provide liquidity into the CPAMM!

Blackpaper​

For a more in-depth overview of the emojicoin dot fun mechanism design, see the emojicoin dot fun blackpaper!

Emojicoin or else​

The only coins that can be launched are emojicoins from the Unicode emoji library.

Emojicoin CPAMM Pool​

The emojicoin CPAMM follows the constant-product equation popularized by Uniswap v2:

$$ X \cdot Y = K $$

Emojicoin lifecycle: launch to pool​

Introduction: Congratulations! You've decided to launch an emojicoin! Head on over to emojicoin.fun for a seamless experience, powered by the Aptos blockchain.

First steps: launch your emojicoin​

Launching an emojicoin costs just 1 APT plus a 1 APT refundable deposit! Note the following:

  • Single emojis and emoji combinations are supported, as long as the total number of bytes is 10 or less.
  • Only one market may be launched for a given emoji combination (emojicoin markets are canonical).
  • Emojis that became part of the Unicode emoji library after the launch of emojicoin.fun are not supported.
  • The 1 APT refundable deposit will be sent back to the market registrant once the market exits the bonding curve.
  • After the market is registered, a 5 minute grace period begins, during which only the market registrant may place the first swap. After the first swap or 5 minutes, whichever comes first, anyone can swap!

Growing up: exiting the bonding curve​

As users buy or sell against the bonding curve, the market capitalization of the emojicoin changes. Once 1,000 APT of cumulative buy pressure has pushed the bonding curve up to a market capitalization of 4,500 APT, the emojicoin leaves the bonding curve and the 1 APT deposit is automatically sent back to the market registrant.

Going to college: emojicoin liquidity pools​

Once an emojicoin's market capitalization reaches 4,500 APT, the underlying market undergoes a state transition: the 1,000 APT that has been deposited into the bonding curve is transferred into an emojicoin CPAMM liquidity pool, alongside roughly 22.3% of the remaining emojicoin token supply that has not yet gone into circulation. The LP coins generated from this step are then burned into the pool to ensure continued market liquidity. Note that this entire step is autonomous (handled by the protocol itself without any human intervention).

Once an emojicoin has left the bonding curve, users may earn yield on their emojicoins by providing liquidity to the new CPAMM liquidity pool!