Based on our observations, we've noticed that the pricing algorithm for equity on the Friend.tech platform results in an excessively steep price curve, causing concerns for potential buyers. Due to the absence of customization options for creators to shape the price curve, many prospective purchasers might abandon their buying intentions due to the high prices, potentially leading to a loss of genuine user engagement. Recognizing the paramount importance of an authentic user experience, we've taken this issue seriously.
To address this, our team has introduced a groundbreaking feature on the Xchange platform. We've implemented the ability for equity creators to tailor the price curve, thereby better aligning with market demands and user psychology. Central to this feature is the introduction of a parameter termed "curveindex," spanning ten levels from 1 to 10. Each level signifies a distinct slope for the price curve, indicating the rate of price changes.
This signifies that equity creators now possess the capability to finely adjust the price dynamics of their offerings based on market conditions and user feedback. Should they perceive a need for smoother price fluctuations, they can opt for a higher "curveindex" level, resulting in a gentler slope for the price curve. Conversely, if the market allows, they can choose a lower "curveindex" level to facilitate swifter price changes.
Below are graphical representations of the price slope for each level, aiding in comprehending the concept:
Level 1: Steep slope Level
2: Slightly steep Level
3: Gradually flattening Level
4: Moderately flat Level
5: Gentle Level
6: Slightly gentle Level
7: Gradually gentle Level
8: Fairly gentle Level
9: Very gentle Level
10: Extremely gentle
This innovative feature transforms the Xchange platform into a more flexible and user-friendly trading venue. We believe that by involving creators in pricing decisions and empowering them to customize price curves, we can better balance market prices with user demands, thereby enticing greater participation and elevating the overall user experience. This underscores our unwavering commitment to an authentic user experience.