🖱️The Technical Backbone of Pnd.fun

Bonding Curve Mechanism

The Bonding Curve is a mathematical model that automatically adjusts the price of tokens based on supply and demand. Unlike traditional token launches, which typically rely on fixed prices or predetermined distributions, the Bonding Curve system ensures that token prices are determined dynamically as the market evolves.

When demand increases, the price rises gradually; when demand decreases, the price lowers. This model helps to avoid price manipulation, creating fair and transparent pricing based on the natural market forces of supply and demand. By ensuring that every participant can buy or sell tokens at a fair market price, the Bonding Curve reduces the likelihood of market distortions caused by early investors or bots.

Raydium Liquidity Pool Integration

When a token created on Pnd.fun reaches a predefined market cap threshold, the platform automatically transfers the raised funds into Raydium’s liquidity pool (LP). These funds are locked through smart contracts, ensuring that they cannot be withdrawn or manipulated by anyone, including the token creators. The integration of Raydium’s AMM mechanism provides an efficient, decentralized liquidity solution that allows tokens to be immediately tradable upon reaching the market cap milestone.

The liquidity pool on Raydium is automatically funded with the proportion of raised funds, ensuring that buyers and sellers can exchange tokens seamlessly. Raydium’s automated pricing algorithm works based on the liquidity in the pool, enabling real-time price adjustments and ensuring that the token price is determined by market demand rather than centralized control. The AMM system uses liquidity from the pool to offer slippage-free, high-volume trades, which is crucial for maintaining a stable price for the token.

Once the funds are transferred into the liquidity pool, the liquidity remains locked via Solana smart contracts, which are immutable and transparent, making the process trustless and secure. Investors can view the status of liquidity directly on the blockchain, giving them the ability to verify that the funds are properly locked and secure.

Buyback & Burn Mechanism

This mechanism is driven entirely by smart contracts that automate the process of buying back tokens from the open market and permanently removing them from circulation.

At its core, the Buyback & Burn mechanism relies on Solana’s smart contract technology to execute the buyback and burn process automatically. This is done through a pre-programmed set of instructions within the contract, which ensures that the process occurs without human intervention and is executed in a trustless, verifiable, and secure manner.

• The smart contract is programmed to trigger whenever the conditions of the buyback are met (i.e., a transaction fee is collected).

• Once the required fee (50% of the transaction fee) is gathered, the contract automatically buys back tokens from the open market, using a predefined algorithm to determine the quantity of tokens purchased.

• The purchased tokens are then burned (destroyed) by the contract, reducing the total circulating supply.