Beradrome Bonding Curve

Beradrome uses a special system called a “bonding curve” to manage its BERO token. This system keeps BERO’s value stable and sets its price using two parts: Floor Reserves and Market Reserves. Here’s what it does and why it’s cool: Three Big Wins of the Bonding Curve:

1. Easy Liquidity: You can add BERO to the system without worrying about losing value (impermanent loss). This makes trading pools deeper and prices steadier.

2. Call Option Rewards: It creates oBERO tokens (rewards) that act like options to buy BERO cheaply, keeping the reward system sustainable.

3. Safe Borrowing: You can borrow HONEY against hiBERO without interest or risk of losing your tokens. Floor Reserves: The Safety Net The Floor Reserves make sure BERO never drops below a set minimum price (1 HONEY per BERO). This “floor price” gives everyone confidence because it’s a guaranteed lowest value.

Here’s how it works • oBERO Options: LPs earn oBERO, which lets them buy BERO at the floor price (1 HONEY) anytime—no expiration date. If the market price is higher, they score a deal! • Sell for HONEY: You can also trade your BERO back for 1 HONEY, locking in that minimum value. • Unlimited Supply: The Floor Reserves use a “constant-option bonding curve,” meaning it can handle any amount of tokens without limits. Market Reserves: The Price Setter The Market Reserves figure out BERO’s market price based on how much people want it—no big upfront money needed. Here’s the deal: • Keeps Prices Above the Floor: The market price stays at or above 1 HONEY, ensuring lots of tokens are available for trading (liquidity). • Virtual Bonding Curve: This clever system starts with a set amount of BERO and “virtual HONEY” (fake HONEY used for math, not real backing). It sets prices from the floor (1 HONEY) up to infinity, based on demand. • Buy and Sell Anytime: You can trade BERO at the market price directly from these reserves, no waiting required. • No Extra Incentives Needed: It provides deep liquidity and low price swings right from the start, without relying on outside help. Why It Matters The bonding curve splits into two parts: the Floor Reserves keep BERO safe with a minimum value, while the Market Reserves adjust the price based on what people want. Together, they make trading BERO easy, stable, and rewarding. For more techy details on the math, check out the “The Mathematics Behind The Virtual Assets” section