Demystifying the Friend Tech Union Curve

I had time to take a closer look at Friend Tech’s smart contract source code over the weekend and found a trick in Friend Tech’s Bonding Curve: Friend Tech’s joint curve is not a smooth and continuous quadratic curve, but a quadratic curve fitted by discrete points.

The joint curve function of Friend Tech is that KEY price = (number of KEYS)²/16000. According to this formula, we can easily plot the halo-based and continuous quadratic curve in the figure below.

! [Smart Contract] (https://img.jinse.cn/7116223_watermarknone.png)

But this painting completely ignores an important feature of Friend Tech’s smart contracts: the pricing function and the buy-sell function, which only accept the output and input of integers.

So, the picture above is the joint curve of the fake Friend Tech, and the joint curve of the real Friend Tech looks like this:

! [Smart Contract] (https://img.jinse.cn/7116224_watermarknone.png)

Under the action of this discrete joint curve, every time the user sells the nth KEY, the market price of the KEY will become the n+1st KEY price, not the price of the nth KEY that has just been traded. The same is true when selling a KEY, but the n-1 KEY price is the market price.

Such characteristics are easy to spiral up prices, and it is easy to let prices fall into a death spiral.

! [Smart Contract] (https://img.jinse.cn/7116225_watermarknone.png)

Friend Tech’s method of pricing KEY is to add an additional 12% hidden transaction tax to the 10% notional transaction tax.

So Friend Tech’s real transaction tax is 22%.

Under such a high transaction tax ratio, for the Friend Tech team, the best strategy is not to issue coins, but to continuously PUA user transactions.

Friend Tech’s promise to send airdrops, just as the Bible says God will knock at any time, is afraid that we will stop halfway.

But honestly, they probably never happen.

Source: Golden Finance