Settlement Mechanism 📦

Physical delivery is the source of price discovery for Bubbly. Bubbly has designed a settlement mechanism adapted to AMM, where all sellers collectively act as the counterparty to all buyers.

After the TGE of pre-market assets, the corresponding AMM pool will begin the physical delivery process. Most AMM pools will have 24 hours for sellers to deliver to buyers.

The delivery rules for sellers will follow the official guidelines. If there are any unconventional rules, such as vesting or non-linear structures, Bubbly can handle them with our delivery contract. We can align with the delivery rules, as they are also executed through smart contracts. All buyers will share the applicable rules of all the sellers. For example, if 50% of sellers have vesting and 50% do not, then all buyers will be able to claim 50% immediately and receive the remaining 50% through vesting.

If a seller does not deliver the corresponding tokens within 24 hours, the seller's collateral will be forfeited.

Buyers will receive either the tokens delivered by the sellers or their principal back along with the seller's collateral as compensation. Depending on the buyer's average buy price, the higher the price, the more likely the buyer will receive the seller's collateral, while the lower the price, the more likely the buyer will receive compensation.