Revitalizing Trading Dynamics through “Trade with Equation”

Bounce Brand
3 min readOct 6, 2023

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In the ebbs and flows of the financial landscape, Friend tech introduces an innovative financial model, diverging from the established protocols of weighty Total Value Locked (TVL) based Automated Market Makers (AMM) and the conventional order book mechanisms. They have ushered in a novel approach titled “trade with equation,” which redefines traditional trading mechanisms and rules.

In the conventional trading sphere, players engage in a tug-of-war, navigating through liquidity and counterparty actions. Price points traditionally materialize at the juncture where buy and sell orders collide, given that liquidity conditions are fulfilled. Contrastingly, Friend.tech choreographs a different dance, where price isn’t sculpted by the classical forces of demand and supply. Instead, it is meticulously pre-set via an equation, offering transparency as every participant is versed in the function and governing rules.

A Closer Look at the Equation-Driven Trading Mechanism

The cardinal variation brought forth by Friend tech pertains to the manner in which price, probability, and time intermingle. The price of each share within this system is not a fluid entity influenced by market dynamics. Rather, it’s an immovable fixture determined by a specific mathematical function. The moving pieces in this strategy are essentially the probability and the temporal element concerning the emergence of the next buyer or seller in the market.

A Reimagined Financial Canvas: Inclusion and Accessibility at the Forefront

One of the most striking merits of the “trade with equation” model lies in its democratization of market formation. By unshackling the process from the necessities of capital and TVL, it paves the way for a more inclusive trading environment. This innovative approach effectively dismantles barriers to entry, granting individuals the capacity to craft an equation and instantaneously delve into trading and speculation, even in the absence of underlying liquidity.

Future Trajectories: Bounce Team’s Vision

Perceiving immense potential in the “trade with equation” model, the Bounce team is ardently channeling efforts into a product designed to empower individuals. The forthcoming product aims to furnish people with the tools to concoct their own equation, thereby facilitating the creation and trade within their personalized pools. This model not only fosters an environment of financial inclusivity but also kindles the spirit of innovation and personalized trading experiences.

In a nutshell, Friend.tech, through its pioneering financial model, attempts to rewrite traditional trading norms, offering a fresh, equitable, and transparent trading avenue that sidesteps the conventional hurdles posed by liquidity and capital requirements. The road ahead seems promising, with teams like Bounce striving to further refine and enhance this model, potentially ushering us into a new era of financial trading where mathematical precision meets inclusive participation.

About Bounce Finance

Bounce Finance is a decentralized platform dedicated to meeting the evolving needs of the Web3 space. Established in 2020, Bounce Finance is proudly known for outstanding user experience and seamless integration of blockchain technology in trading both digital and tangible assets. We provide a decentralized auction protocol that empowers users to create and participate in diverse types of auctions on multiple blockchain networks. With a focus on Auction as a Service, Bounce Finance offers a wide range of products, including Token & NFT Auctions, Real-World Collectible Auctions, Ad Space Auctions, and SDK. Bounce Finance also provides Private Launchpad services, an on-chain solution designed to streamline IDOs for new projects.

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Bounce Brand
Bounce Brand

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