Automatically Priced Asset

We introduce a new term Automatically Priced Asset to better explain our trading mechanism of Topic Power.

They can be traded similarly to ERC20 tokens. However, what distinguishes them from ERC20 tokens is the integration of supply distribution, price determination, and liquidity solutions directly into the smart contract. This design ensures sufficient liquidity and eliminates the rug pull risks.

The pricing mechanism of Power leverages the AMM's constant product formula with a 'virtual liquidity pool' concept for price calculation. See TRADING MECHANISM section for details.

Innovations

1. Pricing Mechanism with Liquidity Solution

One of the biggest challenges in crypto trading is liquidity. Although solutions have evolved - from the order books solution on CEX, to the AMM solution on DEX - assets still frequently suffer from liquidity constraints.

At Topic.Market, we provide an ultimate solution for the liquidity. Our pricing is determined directly through a formula, eliminating the need to pre-arrange liquidity. As people buy in, the ETH enters in the smart contract and naturally serve as liquidity for selling. This system is self-sustaining, requiring no additional liquidity to be provided.

2. Fair Launch and Anti-Bots Solution

In crypto trading, a fair starting point for everyone is often a challenge to achieve. Many crypto assets open with prices that are quickly snatched by automated bots or insiders, leaving the general public investors to face a much higher prices.

At Topic.Market, our design of starting with a high buying fee that gradually decreases eliminates the risk-free profit chances for bots, making the process fairer for everyone.

3. Burning Mechanism and Price Protection

A common concern among investors is the chance of an asset's value collapsing, resulting in a total loss of their investment. At Topic.Market, our unique pricing mechanism and fee-burning approach ensures that the trading price never falls below its starting point. Moreover, the potential lowest price (Floor Price) will continually rise with ongoing trades. This adds an extra layer of your financial security.

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