Blockasset is using Strata Protocol to do permissionless launches of their athlete tokens so they are immediately tradable. No need for market makers or liquidity providers. Strata seamlessly handles the supply and the liquidity.
While this sounds complex, from a fan perspective it’s as easy as clicking “buy”.
This is accomplished using an Automated Market Maker (AMM) called a bonding curve.
The best way to visualize this process is with poker chips. Imagine there is a cash register. When you put dollars into the register, the cashier gives you chips (tokens). When you return the tokens, the cashier gives you dollars back. When you give Strata Protocol $BLOCK, it gives you Athlete tokens. When you sell them back to the protocol, it gives you $BLOCK. The more of the athlete token in circulation, the more $BLOCK it costs to purchase a token and the more $BLOCK you receive by selling tokens.
Athlete tokens are currently priced on a square root curve. This means the price is related to the square root of the total supply of athlete tokens. Here’s a visualization:
The launch day prices may differ, but the curve will have the same shape.