Trading Mechanics

Before diving into trading mechanics, note that any HYPE sent by token creators during token creation automatically purchases tokens for the creator, ensuring fair launch conditions.

Buying Tokens

Purchase tokens by sending HYPE to the contract:

function buyTokens(address token) external payable

How to Buy

1. Send HYPE: Include HYPE value in your transaction

2. Automatic Calculation: Contract calculates tokens based on bonding curve

3. Fee Deduction: 1% fee goes to protocol

4. Token Transfer: Remaining tokens sent to your wallet

Selling Tokens

Sell tokens back to the bonding curve:

function sellTokens(address token, uint256 tokenAmount) external

How to Sell

1. Call sellTokens: Specify how many tokens to sell

2. Receive HYPE: Get HYPE minus 1% fee back to your wallet

Price Estimation

Before trading, estimate the outcome of your trade:

Estimate Token Purchase

function estimateBuy(address token, uint256 hypeAmount) public view returns (uint256)

Estimate HYPE from Sale

function estimateSell(address token, uint256 tokenAmount) public view returns (uint256)

Bonding Curve Mechanics

Price Formula

The bonding curve uses an AMM (Automated Market Maker) formula:

• Virtual Reserves: Each token starts with 300 HYPE and 1B tokens

• Price Discovery: Price = HYPE Reserve / Token Reserve

• Dynamic Pricing: Price increases as tokens are bought, decreases as tokens are sold

Trading Fees

Fee Structure

• Fee Rate: 1% on all trades

• Bonding Curve Phase: All fees go to protocol

• Post-DEX Phase: Fees split 50/50 between creator and protocol

Trading Restrictions

Creator Restrictions

• 1-hour lock: Token creators cannot sell for 1 hour after creation

• Prevents immediate dumping and protects early buyers

Token State Restrictions

• Active Trading: Only possible during bonding curve phase

• Post-Migration: Cannot trade once token graduates to DEX

• Frozen Tokens: No trading allowed if token is frozen

Checking Liquidity

View current token liquidity:

function getLiquidity(address token) public view returns (uint256 hypeReserve, uint256 tokenReserve)

Trading Strategies

For Buyers

1. Early Entry: Lower prices at the beginning of bonding curve

2. Estimate First: Always check estimateBuy() before purchasing

3. Watch Liquidity: Monitor reserves to understand price impact

For Sellers

1. Timing: Consider market sentiment and token progress

2. Partial Sales: Sell in smaller amounts to minimize price impact

3. Creator Lock: Remember 1-hour restriction for token creators

Graduation Threshold

Bonding Curve Completion

• Target: 649,300,000 tokens sold (64.93% of supply)

• Graduation: Migration to HyperSwap DEX

What Happens at Graduation

1. Trading Stops: No more bonding curve trading

2. DEX Creation: HyperSwap pair is created

3. Liquidity Migration: Remaining HYPE and tokens become DEX liquidity

4. New Phase: Trading continues on HyperSwap with fee sharing

Safety Tips

• Estimate First: Always use estimate functions before trading

• Check Reserves: Understand current liquidity before large trades

• Slippage Awareness: Large trades have higher price impact

• Contract Verification: Ensure you're interacting with the correct contract address

Happy trading on LiquidLaunch!