LaunchFi

Our project uses Uniswap v4 hooks in a smart contract to allow users to launch their tokens using an exponential bonding curve 🤣 , a gradual Dutch auction 🇳🇱, and linear decay for LP dynamic fees 🌈

For the exponential bonding curve, we have included a mathematical formula and graph in our video to better illustrate the relationship between token minting, pricing, and the exponential constant. This method is particularly useful for meme coin listings 🐕.

For the gradual Dutch auction, we chose this method to ensure fairness in token distribution and to incentivize early adopters. Additionally, it helps to prevent price manipulation, allows for better price discovery, and ensures that tokens are sold at a fair market value 💰.

For LP dynamic fees with linear decay, the fees will be highest in the beginning to prevent token dumping and reward LP holders. As time progresses, the LP fees decrease for gradual price discovery without putting too much selling pressure 💮.

Integrating Uniswap v4 hook features into a smart contract for implementing a gradual Dutch auction and an exponential bonding curve for a token launchpad is a sophisticated approach.

Below, we provide a detailed outline of how to approach this project, including key considerations and steps for implementation.

Key Concepts

1. Uniswap v4 Hooks:

   • Hooks allow customisation of the behavior of swaps and other liquidity operations.
   • Useful for implementing custom logic such as auctions and bonding curves.

2. Gradual Dutch Auction:

   • A type of auction where the price decreases over time until a bid is made.
   • Implemented GDA based on Paradigm's research -> https://www.paradigm.xyz/2022/04/gda
   • Suitable for token launches to find market-driven prices.

3. Exponential Bonding Curve:

   • A pricing mechanism where the price of tokens increases exponentially as more tokens are bought.
   • pump.fun style , to create hype
   • Ensures a fair distribution and price discovery based on demand.

4. Linear LP Fees Decay

   • Decay in the LP fees based on a fixed time period, fees will be highest initially and slowly reduced for price discovery

Steps for Implementation

1. Set Up the Development Environment:

   • Install required tools: Solidity, Foundry
   • Create a new project directory and initialize it using forge
   • Install Uniswap v4 SDK and related dependencies.

2. Design the Smart Contract:

   • Define the smart contract that integrates Uniswap v4 hooks.
   • Implement the logic for the gradual Dutch auction.
   • Integrate the exponential bonding curve mechanism.

3. Integrate Uniswap v4 Hooks:

   • Utilize the hooks to capture and manage swaps and liquidity events.
   • Ensure hooks are correctly integrated to enforce auction and bonding curve rules.

4. Implement Gradual Dutch Auction Logic:

   • Define the initial price and the decrement rate over time.
   • Implement a function to update the price based on elapsed time.
   • Ensure that once a bid is made, the auction stops, and the token is sold at the current price.

5. Implement Exponential Bonding Curve:

   • Define the bonding curve formula (e.g., price = initial_price * e^(k * tokens_ninted)).
   • Implement functions to handle token purchases and update the price accordingly.
   • Ensure accurate token accounting and price updates based on the curve.

6. Testing:

   • Write unit tests to cover all scenarios, including price updates, auction bids, and bonding curve purchases.
   • Deploy a local blockchain and test the contract using Hardhat or Truffle.
   • Use tools like Mocha and Chai for test assertions.

7. Deployment:

   • Deploy the smart contract to a testnet
   • Verify the contract on Blockscout.
   • Test the live contract with small transactions to ensure functionality.

8. Launch:

   • Prepare for the mainnet deployment.
   • Announce the token launch and provide instructions for participation.
   • Monitor the launch for any issues and be ready to address them quickly.