Pricing Algorithm

The pricing algorithm utilized the Bancor Formula. In this system, the Reserve Token refers to the reserve asset that users deposit into the bonding curve, while the Continuous Token is the GHST token that users receive in return for their deposited reserve asset. The Reserve Ratio was a fixed ratio between 0 and 100%, representing the value in the reserve pool divided by the value of the token supply multiplied by the price. A higher reserve ratio results in lower price sensitivity, meaning that each buy and sell transaction will have a relatively softer effect on price movement. Conversely, a lower reserve ratio results in higher price sensitivity, causing each buy and sell transaction to have a relatively stronger impact on the token price movement. This mechanism ensures that the token price adjusts appropriately with every transaction to maintain equilibrium.