Fairside
  • Overview
    • The Problem: We Lack Consumer Protection
    • The Solution: Community Aligned Coverage
    • Vision & Mission
  • Membership and Coverage
    • Membership Signup
    • Covered Assets
    • Covered Events
    • Not Covered
    • Platforms Covered
  • Claims and Valuations
    • Valuation of Loss
    • Claims Assessment
    • Claims Process
  • Capital Pool and $FAIR Token
    • Capital Pool
    • What is $FAIR?
    • How $FAIR Works
    • Benefits of Holding $FAIR
  • Technical Overview
    • $FAIR
    • Fairside network
    • Fairside Claim Process
  • Solution Design
    • Capital Pool: Bonding Curve Overview
      • Fairside Bonding Curve
      • Bonding phases
      • Funding Pool
      • Bonding Curve Formula
      • Bonding Curve Safeguards Mechanisms
    • Fairside Network
      • Fairside Network Model
      • Membership details
      • Membership fee distribution
    • Fairside Claim Process
      • Cost Share Benefits
      • Claim & appeal process
  • Resources
    • FAQ
    • Audits
    • Bug Bounty
  • Fairside SDK
  • Policies
    • Terms of Sale
    • Terms of Use
    • Privacy Policy
    • AML Policy
    • Fairside Network Guidelines and Membership Agreement
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  1. Solution Design
  2. Capital Pool: Bonding Curve Overview

Funding Pool

The funding pool operates as a multisignature wallet, stocked with 500 ETH to cover the operational costs of the protocol. To ensure its sustainability, this pool is fueled with funds from investor deposits made through the bonding curve mechanism, triggered whenever the pool's balance dips below a specified threshold. In the process of refilling, the allocation of the incoming deposits is split: 70% is transferred to the bonding curve to maintain its liquidity and functionality, while the remaining 30% is channeled back into the funding pool to replenish its reserves for ongoing and future operational expenses.

This strategic distribution ensures both the liquidity of the bonding curve and the financial health of the funding pool, enabling the protocol to operate smoothly and efficiently.

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Last updated 11 months ago