MetaSoccer Token Bonding Curve
The MetaSoccer Token Bonding Curve (TBC) is a Smart Contract that enables users to buy and sell the MetaSoccer Universe (MSU) token. Similar to Uniswap and other DEXes, the TBC will always be available to trade MSUs at an evolving price, and can therefore be considered an Automated Market Market (AMM) too.
What’s a TBC?
While traditional DEXes work by pooling two or more tokens and trading against the pool, a Token Bonding Curve goes a step further by having control over one of those token’s supply (called the “managed” or “bonded” token, in our case the MSU) and just keeping a growing reserve of the other token (the “collateral” token, in our case we’ll use DAI). The price (in terms of collateral — DAI) moves up and down according to a mathematical formula that depends on the managed token supply (number of available MSUs). This formula has generally a “curved” shape, thus the “Curve” in TBC.
When a user buys, the Curve mints (creates) tokens in exchange of collateral. When selling, the Curve will burn (destroy) those tokens back and return the collateral. This means that the Curve will not only increase the token supply when demand grows, but also decrease it when demand shrinks, making sure the ecosystem will adapt to long-term growth and reducing the impact from potential shocks.
The liquidity of the TBC (the reserve of the Collateral token, or the amount of DAIs in our case) grows when people buy, and decreases when people sell, making it proportional to the project valuation by design. This effectively avoids the liquidity issues found in other DEXes (since price is directly linked to the TBC liquidity, a price increase will always be matched with an increase in liquidity, reducing the impact of big sales at high prices compared to a traditional DEX).
The MetaSoccer Curve
For MetaSoccer, all the proceeds of the MSU public sale (540K DAI) will be used as the initial collateral reserve to bootstrap our Token Bonding Curve. At the TGE, the Curve will open for trading and the initial supply of 360M MSU will become dynamic starting at 0.035 DAI/MSU. New MSU tokens will be minted to accommodate new users, and the MSU sold at the curve will be burned to reduce supply and reduce impact. MSU price will be determined using the Bancor Formula with a Reserve Ratio of 20%:
You can explore the MetaSoccer TBC and simulate it’s behaviour to calculate the potential return of your investment here: https://observablehq.com/@dmilla/msu-bonding-curve .
The MSU Curve has been carefully fine-tuned to reach an equilibrium between stability and growth. For example, if the Curve ends up minting an additional 360M MSU, effectively doubling the initial MSU supply, we’ll have:
- A price of 36.09 DAI/MSUs, more than a 1000x increase from listing price
- 3,155,237,778 DAIs of liquidity into the TBC reserve
- A fully diluted valuation around 26 billion $
To add some context, Axie Infinity has a limited supply model with 270M AXS tokens total supply. At 100$/AXS, their fully diluted valuation is 27 billion $, a 1000x increase from their listing price of 0.10$. That shows how the MSU Token can take advantage of the benefits of a TBC, while also allowing for greater upside potential than current industry leaders such as AXS.
You can explore the MetaSoccer TBC and simulate it’s behaviour to calculate the potential return of your investment here:
Instead of directly funding the project with the public sale proceeds, those will be blocked as the initial liquidity for the TBC and only retrieved via a “tap” mechanism. This “tapering” allows the team to regularly take a fixed amount from the TBC reserve in order to pay the operational expenses of the project in a transparent way. The initial “tap” amount will be 30K DAI / month.
To mitigate front-running and similar attacks, the MetaSoccer TBC batches all the buy and sell orders received during a parametrable period of time. All orders inside the same batch are matched and given a common price. Each batch will last approximately 10 seconds, and users will be able to claim their orders once it has ended. This measure also protects the TBC from all kinds of potential flash exploits.
The MetaSoccer TBC will be available under Polygon network at msu.metasoccer.com. It’ll be the main source of MSU liquidity and will serve as the reference price among all the DEXes and CEXes our token will be trading. Therefore, it’ll be the best place to Buy/Sell your MSUs, especially for big orders or if you’re concerned about potential bot exploits. Remember, by buying at the Curve you’ll be directly supporting the project and increasing the MSU liquidity at the same time!
Note: Due to the batch-system explained above, the maximum slippage affects the whole batch and therefore can’t be directly chosen by users. To accommodate the high demand anticipated at launch, the TBC will open with 3% max slippage per batch of 10 seconds. On top of that, we’ll set a maximum order size of 2% of current liquidity (10800 DAI at listing). These values will be adjusted as liquidity grows to match the needs of the ecosystem.
Once the liquidity grows, the maximum slippage will be updated to 1% per batch, and the max order size will also be 1% of total liquidity.
However, if you prefer to use traditional DeFi tools, MSU will also be available in SushiSwap (Polygon network) after the TGE. And CEXes are coming soon, stay tuned!
MetaSoccer is the first blockchain-based soccer metaverse where users can create their own club and generate income while playing (Play-to-Earn).
A whole soccer ecosystem where users can participate full-time as club owners or managers while having fun and generating income. MetaSoccer embraces multiple revenue streams such as: NFT asset drops, fees from different transactions across the ecosystem (marketplace sales, betting, token swap…), sponsorships and broadcasting.