Token Bonding

Booststrap liquidity and gain interest from investors looking to get in early

The Bonding Phase

Rewarding Early Supporters of New Basis Tokens

When a new Basis Token (either Stable+ or Floor+) is created using the Basis Token Factory, it enters an initial "bonding phase." This critical period is designed to establish initial liquidity in a fair manner and to significantly reward the earliest adopters and supporters of that specific token.

Bonding Phase Overview

• Token Creation: Creator provides details, and the token contract is deployed.

• Virtual Liquidity: The system pairs the new token with Basis, e.g., $10k notional value.

• Bonding Phase Opens: Users buy the token with Basis.

• Earning Reward Shares: Each purchase fills initial liquidity target and earns proportional reward shares.

• Selling Penalty: Forfeiture of some reward shares if tokens are sold during bonding.

• Bonding Phase Ends: $10k real liquidity reached.

• Passive Income: Rewards from transaction fees flow to bond phase participants based on their shares.

Bonding Phase Breakdown

Step 1: Basis Token Creation & Initial Pairing

• A creator uses the Token Factory to define their token (name, symbol, type: Stable+ or Floor+).

• Upon deployment, the new Basis Token is automatically paired with Basis on the DEX.

Step 2: "Virtual Liquidity" and Commencement of Trading

• To enable immediate trading, the Basis system notionally establishes "virtual liquidity." This means the smart contract for the new Basis Token is configured as if there is an initial $10,000 USD worth of Basis available to be traded against the newly created Basis Token.

• In simple terms (Virtual Liquidity): Think of it as the system "priming the pump." It sets up the trading pair so that the very first buyers have something to buy against, at a starting price determined by the bonding curve logic. This $10,000 isn't actual USDC deposited by the protocol initially; rather, it's a parameter in the smart contract that defines the initial state of the bonding curve and allows the first real USDC (via Basis purchases) to start accumulating and forming the actual liquidity. The price adjusts based on this curve as real liquidity comes in.

Step 3: The Bonding Phase – Earning Perpetual Reward Shares

• The bonding phase is active from the moment the token is created until the real liquidity (i.e., the cumulative value of USDC used to purchase the new Basis Token) reaches the liquidity target.

• Users who purchase the new Basis Token with Basis during this phase earn "Reward Shares" in a dedicated reward pool for that specific Basis Token.

• The number of Reward Shares received is proportional to the amount purchased relative to the bonding liquidity target. These shares are permanent and grant the holder a right to a portion of future transaction fees generated by that specific Basis Token, indefinitely.

Step 4: Selling Penalty During the Bonding Phase

• To encourage commitment and stabilize the token during its nascent stage, there is a penalty for selling Basis Tokens that were purchased during the bonding phase if the sale occurs before the bonding phase for that token has concluded (i.e., before the real liquidity target is met).

• This penalty involves the forfeiture of a portion of the seller's accrued Reward Shares, proportional to the amount of tokens sold. The tokens themselves are sold at the prevailing market price.

Step 5: Bonding Phase Completion & Activation of Passive Income

• Once the real liquidity target (in Basis value) is achieved for the new Basis Token, its bonding phase officially ends. The token is now considered "bonded."

• From this point forward, the 0.05% portion of all subsequent DEX transaction fees generated by this specific Basis Token (as detailed in the Tokenomics section) is automatically directed into its dedicated reward pool.

• This reward pool then distributes these accumulated USDC rewards to all holders of the Reward Shares for that token. Rewards can be claimed by users at any time through the Basis Dapp, with no locks or deadlines. This creates a potential long-term passive income stream for the token's earliest financial supporters.