Little JohnWhere the initial price comes from
Each V10 token starts with an inventory of 1 billion tokens and a virtual ETH parameter of 1 ETH. Before graduation, the displayed spot price is derived from (virtual ETH + actual ETH reserve) divided by token reserve. Virtual ETH is a pricing parameter; it is not withdrawable ETH or a deposit held for users.
Buys and sells
A buy adds the applicable net ETH to the curve and removes tokens from its inventory. A sell returns tokens and draws ETH from the curve, subject to fees and the contract’s calculations. A spot price describes a point on the curve; a large trade moves through the curve and has a different average execution price.
Reserve, volume and valuation
- Curve reserve is actual ETH tracked by the curve.
- Trading volume measures activity; buys and sells can both contribute. It is not the amount remaining in reserve.
- FDV is an implied valuation based on price and supply. It is not cash available to all holders.
- Your realizable proceeds depend on the amount sold, fees, liquidity and successful execution.
Graduation
The current V10 graduation threshold is 4.2 ETH of actual curve reserve. When the contract reaches that threshold, its graduation logic creates liquidity in a Uniswap V4 ETH/token pool using the Little John hook. A token need not reach this threshold, and no schedule is guaranteed.