Introduction

Source: Super.exchange

A major catalyst for the 2024 memecoin supercycle was the frictionless and instant token creation and trading process. Platforms like Pump.fun simplified token launches, fueling explosive growth in Solana-based meme tokens. By mid-2024, Solana had overtaken Ethereum as the preferred blockchain for memecoins, thanks to its low fees and high-speed trading.

However, the token launch mechanism faced criticism for being unfair. Early buyers, including insiders and bot traders, could exploit the system by purchasing tokens at lower prices and dumping them on later entrants.

Super.exchange introduces an alternative approach to token launches, with its unique bonding curve mechanism offering a more balanced entry for all participants. Its native token, $SUPER, incentivizes traders and is entirely community-owned.

What is Super.exchange?

Super.exchange is a decentralized trading platform built on the Solana blockchain that combines a token launchpad with a decentralized exchange. It uses an infinite bonding curve, which does not require traditional liquidity providers commonly used by market makers. Instead, it adjusts prices automatically based on the supply and demand of the tokens.

This approach helps create a more stable liquidity pool and prevents early buyer exploitation, making token launches fairer for everyone involved. The platform has its own token, $SUPER, which is fully owned by the community.

Bonding Curves In Cryptocurrency

A bonding curve is a mathematical formula embedded in a smart contract that dynamically determines a token’s price based on its supply. Usually, as more tokens are purchased, the price increases along a predefined curve, and when tokens are sold, the price decreases accordingly.

Bonding curves create automated, on-chain liquidity by ensuring that tokens can always be bought or sold at algorithmically determined prices. Unlike traditional markets, they operate independently of external order books, relying on supply and demand mechanics within the contract.

Pump.fun’s Model

Pump.fun uses a bonding curve mechanism where new tokens are minted, and their price increases as users buy in. The bonding curve ends once a token’s market capitalization reaches $69,000. At this point, Pump.fun deposits $12,000 worth of liquidity into Raydium, a decentralized exchange on Solana.

However, this transition to Raydium introduces sell pressure and price volatility, as early buyers and traders look to cash out.

The CPMM Model

The Constant Product Market Maker is the popular model adopted by most decentralized exchanges like Raydium and Uniswap. The model is based on the equation; x * y = k

Where;

• x = Quantity of Token A (e.g., SOL) in the liquidity pool.
• y = Quantity of Token B (e.g., a meme coin).
• k = Constant product, meaning the total liquidity remains unchanged.

Therefore in trading; When a user buys Token B, they add more Token A (SOL) into the pool, which reduces the available supply of Token B, since x y must remain constant, the price of Token B increases. Also, when a user sells Token B, they add more Token B into the pool, this reduces the available supply of Token A (SOL), and since x y must remain constant, the price of Token B decreases.

As one token’s supply decreases, its price increases due to the constant product rule. The formula prevents full liquidity depletion but can cause high slippage for large trades.

How Super.Exchange Works?

The mechanism for launching tokens on Super.exchange is based on the Super Curve, a composite curve that bundles seven bonding curves defined by:

𝓍ⁿ . y = k

Where 𝑥 is token supply, and 𝑦 is price, and n is set at 32, 16, 8, 4, 3, 2, and 1.

This means that as 𝑥 (token supply or liquidity) changes, 𝑦 (price) adjusts according to an exponential curve defined by the value of 𝑛 which is predefined as part of the Super Curve’s seven bonding curves.

The Super Curve’s design prevents early buyers from unfairly accumulating large token supplies at low prices. For instance, acquiring 80% of a token’s supply on Super.exchange results in a 40,269x price increase, compared to only a 15x increase on traditional bonding curve platforms like Pump.fun.

Growth comparison of a token using Super Curve vs traditional bonding curves

Market depth characteristics of the Super Curve vs traditional models

Effect of Different n Values

At the beginning of a token launch, n is set high and decreases over time

• n = 32 → Price increases very fast with small buys, and early buyers pay significantly more for each additional token, preventing extreme early accumulation.
• If n = 8 or 4 → price growth slows down but remains positive, but early buyers no longer get an extreme discount over new buyers.
• If n = 1 → Price appreciation is gradual and sustainable, and the bonding curve behaves closer to the traditional formula (x * y = k).

The Super.exchange Model vs Pump.fun Model

The table here compares the features of Super.exchange model with Pump.fun

Navigating Super.exchange

Creating a New Token

To create a new token on the Super.exchange, you must provide an image, ticker, and name. It is recommended that you fill in the optional fields, including links to Twitter, Telegram, and the project website. Token creation is free.

To prevent confusion and potential scams associated with duplicate token tickers, Super.exchange assigns unique identifiers to each token. Once created, any modifications to its details can only be made through a proposal voting process.

Source: Super.exchange

Trading on Super.exchange

Before interacting with Super.exchange, you will need to purchase Solana (SOL) from Gate.io and withdraw it to your wallet address connected to Super.exchange.

To buy a token on Super.exchange;

• From the homepage, Connect your wallet,
• Set the Quick Buy amount in SOL.
• Click the Buy button next to your preferred token
• Confirm the transaction in your wallet.

Source: Super.exchange

Alternatively, you can buy and sell from the token Details Page,

• Confirm the ticker to ensure this is the exact coin you want to trade.
• Select whether to buy or sell.
• Enter the trade amount.
• For buys, you can enter the amount in SOL or the token.
• To sell, the amount is entered in coins by default.
• Check the slippage limit and priority fees; adjust if needed.
• Click “Place Trade” and approve the transaction in your wallet.
• Once the transaction is confirmed on-chain, the trade details will appear in the bottom left section of the page. This may take a few seconds to refresh.

Source: Super.exchange

Configure Trading Parameters

On Super.exchange you can customize two parameters: Slippage limit and Priority fees.

Slippage Limit

Slippage is the difference between the expected price of a trade and the final execution price, often caused by market volatility. Users can set their slippage limit and If the price shifts beyond the specified percentage during execution, the transaction is automatically canceled. The recommended slippage limit is 0.1% - 2%.

Priority Fee

On the Solana blockchain, each transaction incurs a base fee of 0.000005 SOL. As network traffic increases, transactions compete for limited space. Users can pay a Priority fee for faster execution.

Trading Fees

Super Exchange implements a tiered trading fee model based on a token’s Market Cap (MC):

What is SUPER Token?

SUPER is the native token of Super.exchange, earned by gathering points through trading or inviting new users, and can be redeemed for SUPER tokens on a 1:1 basis.

Points are distributed through 5-minute cycles, and the amount distributed per cycle is expected to decrease as SUPER’s market cap grows.

The distribution is based on the formula;

Interval Points Cap = Remaining SUPER in the Bonding Curve / 28800

The points available at any time will be on an 80/20 split. 80% for traders, and 20% for referrals.

Token Distribution

SUPER has a total of 1 billion tokens and is 100% owned by the community with no investor or team Allocation.

50% of trading fees will be used for SUPER buybacks and burns, reducing supply over time.

Source: Super.exchange

Is Super.exchange a Good Investment?

Super.exchange is building a platform that protects traders from the usual pump-and-dump schemes by introducing the Super Curve. This bonding curve mechanism prevents early buyers from accumulating large portions of a token supply at disproportionately low prices.

The $SUPER token itself functions primarily as a reward mechanism. Users earn points through trading and referrals, which can be redeemed for purchasing $SUPER tokens.

However, its long-term viability depends on user adoption, sustained trading activity, and whether it can establish deeper utility for its native token beyond buybacks and burns.

Investing in Super.exchange involves risks like market volatility and regulatory changes. Investors should research thoroughly and assess their risk tolerance, as crypto investments do not guarantee profits and may lead to capital loss.