We all know that the biggest reason why launchcoin can be popular is the ICM (Internet Capital Market) that has become popular recently. This is known as the strongest narrative on the chain, which allows real assets to be put on the chain. However, after launchcoin has been running for a while, it was found that the biggest problem is sniper robots. Slightly better projects are filled with sniper robots, making it difficult for ordinary people to participate in the investment of truly valuable projects, and the concept of ICM cannot operate smoothly.
The GAVEL platform is designed to solve this problem and allow WEB2 assets to be launched fairly on WEB3. $IBRL is the test coin of the GAVEL platform. So what is the mechanism of GAVEL, and why is GAVEL a chance to realize the vision of ICM?
First of all, the GAVEL platform can be understood as a new launch pad, but not everyone can launch it. Currently, the official has audit requirements for participating projects. At the same time, it also has an advanced anti-pinch mode to ensure that it will not be like launchcoin where snipers make a lot of profits. In order to achieve this, GAVEL adopts the following mechanisms and innovations:
1. Token pre-sale will be carried out first. 70% of the tokens will be pre-sold to prevent sudden opening of scrapers or snipers from knowing the news at the first time and buying at the bottom, giving everyone some buffer time.
2. After the opening, 3/7 of the SOL and 30% of the total supply of tokens will be added to their own improved AMM pool, which they call sr-AMM (sandwich-resistant AMM). It is a pool mechanism that makes sandwich tools powerless, which will be introduced in detail later. At this time, the opening price is the same as the pre-sale price, and the sniper robot is also unprofitable.
3. The remaining 4/7 of SOL will be used to purchase tokens directly from AMM and destroyed according to a time exponential decay plan.
4. Liquidity in the AMM will also be extracted according to a time exponential decay plan, extracting 0.01% of liquidity every 2,000 slots (about 13 minutes), with a maximum of 20,000 withdrawals. The extracted SOL will be immediately used to directly purchase $IBRL, and $IBRL will be destroyed.
Sr-AMM's anti-pinch mechanism So how does the GAVEL platform's pool prevent pinching and sniping? First of all, this mechanism is improved based on Vitalik's early articles, https://ethresear.ch/t/improving-front-running-resistance-of-x-y-k-market-makers/1281
Secondly, we need to understand why the MEV attack can be implemented. The MEV attack is to buy first after the victim submits a buy order, and then sell immediately. This is mainly based on
1. The liquidity pool mechanism determines that once someone buys, it will immediately push up the price for the next buyer
2. The verification node cheats and inserts the MEV attacker’s transaction before the victim’s transaction
The core content of the SR-AMM mechanism of the GAVEL platform is that within the leadership cycle of a node validator (4 slots), not every buying and selling operation will affect the price. This is equivalent to if a MEV attack is carried out, your transaction will be packaged together with other people's transactions to affect the price, so that MEV will not be profitable.
If this mechanism can run smoothly, it will undoubtedly be of great help to the progress of ICM's narrative, and the upper limit is very high. The risk is how the platform will operate next, whether there will be platform coins, etc. In short, I am still ready to drill for a while.
