What is Flowfun?
Last updated
Last updated
Flowfun (https://flowfun.xyz/) is a Memecoin + NFT launchpad and exchange built on the Flow blockchain and incubated by NFTGo as well as The Flow Foundation. Since we combine NFTs with Memecoins we call them MeFTs.
Eliminating Minting Inefficiencies:
The bonding curve model incentivizes users to participate early with cheaper prices by dynamically adjusting pricing based on demand. Additionally, it allows users to sell back to the bonding curve at any time to secure their principal. This mechanism prevents users from delaying participation, ensuring they don’t miss optimal minting opportunities, and increases the graduation success rate of NFT minting.
Ensuring Seamless Liquidity:
The automatic creation of AMM pools ensures smooth transitions between primary and secondary markets, NFT projects successfully launched in the primary market will automatically create corresponding exclusive tokens at a 1:100,000 ratio for trading on the secondary market AMM pool. By integrating NFT fragmentation into AMM trading, NFTs are automatically minted and/or sent back into the pool with token-based trading, allowing users to sell assets quickly without listings. This approach not only protects users' assets to a certain extent but also boosts trading volume and liquidity.
Primary Market Liquidity: 80% of NFTs are available for direct minting in the primary market, supported by primary market liquidity.
Post-Graduation Liquidity: After the primary market minting phase ends, these NFTs enter a "graduation" state. At this stage, 20% of the NFTs are injected into the liquidity pool along with 70% of the Flow collected during the primary sale to support secondary market trading.
Example: If a project plans to issue 1,000 NFTs:
Primary Market:
80% (800 NFTs) are minted using the Bonding Curve pricing model
Post-Graduation Liquidity:
Since 1 NFT equals 100,000 project tokens, 20% (200 NFTs) corresponds to 20 million project tokens, which are mandatorily injected into the liquidity pool (AMM).
70% of the Flow collected (e.g., 3,500 Flow out of a total of 5,000 Flow) is injected into the liquidity pool to support secondary trading.
This mechanism ensures a smooth primary market sale while providing stable liquidity for the secondary market.
We support secondary market trading of graduated NFTs on Flowfun MeFT, but there are restrictions on the listing price. Once a project graduates, users can access the trading page directly through the project’s details page.
Trading Rules: The platform does not support transactions below the floor price. Only listings priced at 2x the floor price or higher will appear on the trading page.
Features: The platform allows users to freely buy, sell, or trade NFTs, boosting secondary market activity.
• In the primary market, we use a Bonding Curve pricing model and automatically injects mint funds into secondary market liquidity pools. This ensures more flexible and seamless trading.
Our approach incorporates the strengths of products like Pump.fun, ERC404, and NFTx,
while enhancing liquidity and user experience to deliver greater value for creators as well as users.
Traditional NFT Marketplaces like OTC markets lack continuous liquidity. This deters market makers and makes price stability difficult to achieve. To address this, we prohibit listings near the floor price, encouraging users to trade tokens instead of NFTs to improve overall liquidity.
At the same time, we support high-priced listings for rare NFTs to meet specific user needs. For instance, in a 10k NFT collection, the price of the first minted NFT and the 10,000th differ by about 2.5x. If you minted the first NFT, its value increases 2.5x by the time it enters the secondary market. Additionally, if it’s a rare NFT, you can further double up through premium pricing, achieving even higher returns.
This 2x floor price restriction protects market stability while preserving premium trading opportunities
for rare NFTs, balancing liquidity with user-specific demands.
Formula: f(x) = k * x^0.1
k: The initial NFT price set by the project.
x: The number of NFTs sold.
Examples:
When x = 100, f ≈ 1.58k.
When x = 1,000, f ≈ 2k.
When x = 10,000, f ≈ 2.5k.
This means the price of the first NFT and the 10,000th differs by about 2.5x, a reasonable range.
Project teams can dynamically adjust the k value to accommodate different collection sizes. For example, if the total supply is only 100 NFTs, the initial price (k) may need to be set higher (e.g., above 1000 USD).
Additional restrictions include:
Mandatory Liquidity: 20% of the NFTs must be added to the AMM pool and cannot be sold during the Bonding Curve phase.
Total NFT Supply Range: The total number of NFTs can range from 20 to 12,500, with 16 to 10,000 NFTs available for sale during the Bonding Curve phase.
Fixed Curve Shape: While the curve shape remains unchanged, project teams can set a supply cap. For instance, if the cap is set at 3,000 NFTs, only up to 2,400 can be sold during the Bonding Curve phase.
Why this formula?
The curve incentivizes early participation by offering lower prices initially, solving the issue where users hesitate to mint early and wait for others to act. The gentle curve ensures later buyers don’t face excessively higher prices.
Additionally, we allow users to sell NFTs minted during the Bonding Curve phase, recouping most of their funds (minus a small fee), thus protecting their mint fund and reducing risks.
For collections of ≥10,000 NFTs: The price of the first NFT and the 10,000th differs by 2.5x.
For collections of <10,000 NFTs: The price increase is less than but close to 2.5x.
