🧑‍🏫Price of Bits

The bonding curve is subject to final changes before the launch of Gambit Finance.

The price of Bits is determined by a dynamic function. This allows the reward of early buyers as they identify skilled players sooner than others. The price of a gamer's Bit (in ELS) follows the function:

$$p(n) = {\cfrac{n^2}{2.5}} + F(V)$$

$$s(n) = {\cfrac{(n-1)^2}{2.5}} + F(V)$$

$$F(V) = DMI = C + (D -C) * ({\cfrac{V_{pw}}{V_{m}}})$$

In the above formula, p(n) or s(n) represents the purchase or selling price of a player's Bit denoted in ETH, where:

(1) n represents the circulating number of Bits of the gamer,

(2) F(V) is a dynamic function that sets the starting price of the gamer's Bits, which is only relevant for new gamers who have not yet sold any Bits.

F(V) is a dynamic growth function, which we label as dynamic market index (DMI), which sets the starting price of the first Bit in circulation and converges to 10 (ELS) in the limit:

(1) C is a constant set at 1 and represents the floor,

(2) D is a constant set at 10 and represents the ceiling,

(3) V(pw) is the total volume from trading Bits in the entire protocol over the past week and is denoted in ELS volume,

(4) V(m) is the maximum volume from trading Bits in the entire protocol, defaulting to 30M.

Bonding Curve of Bits

Below is a visual representation of the first 50 Bits of a player. Each net purchase of a bit increases the supply or total Bits in circulation.