Bancor Based PIM: Virtual Supply

Module Category: Funding Manager

The Bonding Curve Bancor Funding Manager provides algorithmic pricing for minting & redeeming tokens. It enables dynamic pricing of tokens in response to their supply by utilizing the Bancor Formula.

Projects can utilize this module to set a primary market for their assets without needing liquidity while benefiting from the native yield that primary markets unlock for tokens.

# Module Functionalities:

Parameters to set:

Bonding Curve Formula: The Bonding Curve shall utilize the Bancor formula to create two distinct bonding curves for funding to mint and burning to withdraw.

Reserve Ratio for Buying/Selling: Specifies two different exchange rates for buying and selling, effectively having two different curves.

Buy and Sell Fee: Projects can apply a fee to transactions in which tokens are bought and sold.

Buying Open or Closed: Controls whether tokens can be currently bought, allowing administrators to control the availability of their tokens. Tokens can be opened and closed to buying depending on the administrators’ decision.

Selling Open or Closed: Controls whether tokens can be currently sold, allowing administrators to control the availability of their tokens. Tokens can be opened and closed to buying depending on the administrators’ decision.

Virtual Collateral/Token Supply: Allows the use of virtual balances for backing collateral, thus making the collateral available to utilize for DeFi strategies or spending.

Minting & Redeeming: Allows users to mint new tokens by providing collateral, with amounts determined by current bonding curve pricing. Users can also redeem tokens by burning them and returning the original deposit.

Cap/Uncap Supply: Sets the supply cap beyond which no further minting can occur.

Permissioning: Restricts the bonding curve to a whitelisted group of actors.