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🔖 Key Features
In this section, we introduce three key features of BuildKey V2. Each of the features protect users from a particular perspective, providing a fair and transparent trading experience.
- Auction Mode: Fair Launch
- Liquidation Protection: Protect Short Traders
- Post-TGE Flexibility: Protect Long Traders
1. Auction Mode: Fair Launch
BuildKey V2 implements an Auction Mode as an upgrade to the original BuildKey V1 Fair Launch mechanism. The goal is to provide every user with smooth, fair, and transparent participation.
For the first five minutes (may vary by project) after pool activation, all buy transactions are subject to an additional auction fund. This fund follows a deterministic linear decay model, starting at a predefined maximum and decreasing to zero by the end of the five-minute window.
The time and amount of the auction fund may vary by project. For example,
| Time | Auction Fund |
|---|---|
| 0 min | +$5 |
| 1 min | +$4 |
| 2 min | +$3 |
| 3 min | +$2 |
| 4 min | +$1 |
| 5 min | +$0 |
The auction fund collected will be either directly deposited into the pool or used to purchase project tokens post-TGE, and shared among all long traders during the settlement stage.
This model does not prohibit early trading but introduces a calculable cost-benefit analysis, requiring participants to weigh the advantage of early entry against the economic disincentive of the tax.
This approach also allows traders to negotiate the initial prices of different assets in a fair and democratic manner, thereby achieving self-adaptive pricing for different assets.
2. Liquidation Protection: Protect Short Traders
Background: Pre-market often suffers more price volatility, giving its highly unstable and poor-liquidity nature. This volatility exposes short position users under high risks. Users might be forcibly liquidated once the price experiences short-term changes. Even if users should be winning if they hold till TGE, they may lose all assets in the pre-market before TGE.
In BuildKey V2: When trading with short positions, short traders will not be forcibly liquidated even if the pre-market price experiences short-term volatility. Instead, short traders can still close the positions and win profit by finishing asset settlement post TGE. This mechanism significantly reduces the unreasonable liquidation risk for short traders in the pre-market.
To be specific, for short-position traders, when the key price rises to 2x of their opening price, their pre-market position will enter a "safe liquidation" mode, and they will not be able to close the position immediately on the pre-market (unless the key price falls back).
Instead, traders can still close your position and receive BNB after TGE by delivering tokens.
3. Post-TGE Flexibility: Protect Long Traders
Within 0–2 hours post-TGE, long position traders can flexibly decide whether to settle their positions or sell BuildKeys on the Bonding Curve, based on the settlement status from the short side and the token price.
This mechanism protect long position traders, offering them more flexibility in decision making and hedging. It enables “short settlement status” and “TGE token price” as decision factors for long traders, helping them to make better decisions and achieve higher returns.