Liquidity-less token launch idea by the great Eni #148
AbdelStark
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@enitrat had this great idea which is basically:
In UniV2-style AMM, as a LP provider you are supplying liquidity for the entire interval of prices between 0 and +inf - this means that when you supply liquidity, you need to supply both token0/token1, with quantities of token0 per token1 that correspond to the current pricing of the pool. For example, if the price is 100 USDC / ETH, then you will need to supply 100 USDC for each ETH added in a liquidity pool, and your position will be active whatever the price of USDC/ETH is.
In concentrated liquidity AMMs (Ekubo, UniV3-V4), you can specify where you want your liquidity to be active. You can set a custom price interval in which you will provide liquidity, and outside of this interval, your position is going to be fully converted to one token depending on if you're going out of the upper bound or the lower bound.
When you create a pool in UniV2 Amms, since you're providing LP for all prices, the amount of collateral (ETH) you deposit dictates the initial price of the token. If you put 1 ETH and 100 tokens, then the initial price is (1 token = 0.01 ETH). If you put 2 ETH and 100 tokens, the initial price is (1 token = 0.02E). But, if the pool is isolated and no one can sell tokens from somewhere else, this amount of collateral (ETH) you deposit in the pool is actually "lost", because the price will never go below the initial price since no one can sell tokens (they're all in LP)
With Ekubo, you can decide what the initial price is going to be, thanks to the concentrated liquidity mechanism. The pool is created with a starting price X. If the creator of the pool decides to only supply liquidity in the range [x, infinity], then there is no need to put ETH in the pool, as the price will never go below X since no one is providing liquidity at these prices. Therefore, it's much more efficient - creators don't need to lock ETH in the pool to launch tokens on AMMs, which allows everyone, regardless of their resources, to launch a token on an AMM.
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