Fairpool

Fairpool AMA on Feb 1


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We have migrated the Fairpool contract to a better pricing formula.

While migrating, we have discovered an interesting fact: the bonding curve parameters don't matter for the purposes of taking profit.

For example:

  • Alice buys for 1 ETH
  • Bob buys for 10 ETH
  • Alice sells for X ETH (X > 1)
  • Alice profit is the same no matter what the bonding curve parameters are. This seems weird, because the price changes differently depending on parameters. However, if the price increases faster, that means the initial purchase for 1 ETH gives Alice less tokens. So when she takes profit, she sells less tokens, but gets the same profit (because, again, the price increases faster).

    In other words, the increase of price cancels out. We've run the tests, and they confirmed this finding.

    We'll still allow the influencers to choose the bonding curve parameters, but we'll narrow down the range of choice (allow only the exponential curves, which look attractive to speculators).

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