After we create a token through PandaTool, how do we determine the initial price of the token?
How to Scientifically Set the Initial Token Price?
The initial token price is fundamentally determined by the asset ratio when creating a liquidity pool. Here’s a step-by-step explanation:
1. Core Pricing Principle
When you deposit assets into a decentralized exchange (DEX), the token price is automatically calculated based on the ratio of the two assets in the liquidity pool:
Token Price = Base Asset Amount / Token Amount
2. Practical Examples
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Deposit 100 USDT + 100 TOKEN → Initial Price = 1 USDT/TOKEN
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Deposit 100 USDT + 10,000 TOKEN → Initial Price = 0.01 USDT/TOKEN
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Deposit 500 USDT + 250 TOKEN → Initial Price = 2 USDT/TOKEN
3. Non-Stablecoin Pricing (e.g., BNB/SOL)
When using volatile assets (like BNB or SOL) as the base currency:
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Calculate in the base asset:
Token Price = Base Asset Amount (e.g., BNB) / Token Amount
Example: Deposit 1 BNB + 100 TOKEN → Initial Price = 0.01 BNB/TOKEN -
Convert to USD value:
Multiply by the current market price of the base asset (e.g., BNB/USDT).
Example: If 1 BNB = 300 USDT, the USD equivalent price = 3 USDT/TOKEN.