PandaFantasy
  • Introduction
  • How It Works
    • Buying and Selling Keys
      • How to Purchase Keys
      • The Role of the Automated Market Maker (AMM)
      • Key Price Dynamics and Supply Changes
      • Smart Contract Functionality for Instant Sales
    • Bonus Pools
      • Rewards Pool Allocation
      • Virtual Dividend bonus
      • Pick 5 Bonus Pool
  • PANDA & USDp
    • PANDA
    • USDp (PandaSea Dollar)
      • Overcollateralization & Backing
      • Minting and Burning Mechanics
      • Not a traditional Stablecoin
    • Benefits to PandaFantasy & PandaSea
    • Getting Started with PANDA & USDp
    • Token FAQ
  • FAQ
    • Is this betting?
    • Are Panda Fantasy Keys securities?
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  1. How It Works
  2. Buying and Selling Keys

Key Price Dynamics and Supply Changes

The price of each key is dynamically adjusted by the AMM:

  • Price Increase: When more keys are bought, the supply increases, and the AMM raises the price. This marketcap (price of most recent key times the number of keys) is raised by approximately 7x the amount of the purchase. This simulates the money multiplier effect of the NASDAQ, upon which the fantasy marketplace is modeled.

  • Price Decrease: Conversely, when keys are sold, the supply decreases, and the AMM lowers the price, factoring in available liquidity. The less liqudity, the fast the price drop.

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Last updated 2 months ago