Introduction
SV3 lets creators launch tokens on a price curve with USDC-backed floors, spot pricing, and permissionless raises that protect holder redemption value.
SV3 is a token launch market with its own USDC reserve. Buyers create new tokens by paying into a price curve. Sellers return tokens to that curve for USDC. As the reserve grows, part of the curve can be converted into a higher redemption floor.
That gives every market two prices:
| Price | What it tells you | What moves it |
|---|---|---|
| Spot | The price of the next small curve trade | Buys move it up; sells move it down |
| Floor | The minimum gross USDC redemption value of one token | A valid on-chain floor raise |
Spot is where the market trades now. Floor is where the curve stops falling.
A launch in one minute
Suppose a creator launches a token and makes a $10 initial buy.
- The 1.25% buy fee is taken from the $10.
- The remaining $9.875 moves through the launch curve.
- About 35,552 tokens are minted to the creator.
- The next token is quoted at about $0.0004555.
- At the next maximum eligible floor raise, the floor can move from 0.0001 USDC/token to about 0.0002557 USDC/token. The spot price stays at 0.0004555 USDC/token during the raise.
The reserve received the money before the market created the matching tokens. That ordering is the foundation of SV3: supply is issued against a known reserve obligation.
The launch uses the v1 curve preset, the default fee split, and high-precision values before final contract rounding. A floor raise is a separate permissionless transaction, so its timing depends on someone submitting it.
What happens as trading grows
Each buy adds USDC to the market and mints along a rising curve. Larger net inflow means a higher marginal spot price.
A raise reshapes existing curve area and may commit fee surplus. It increases the flat redemption region without moving the live spot price.
Curve sells burn tokens and retrace the curve. Once spot reaches the floor, further floor-priced redemptions cannot push it below that value.
A holder may pledge tokens and receive USDC up to their gross floor value. The position has no interest or due date; the pledged tokens remain locked until repayment or surrender.
Why the model holds together
The market keeps an accounting requirement for every token it creates. At all times, gross backing must cover both the floor value of outstanding tokens and the remaining curve value above the floor.
gross backing = liquid market reserve + outstanding advances
gross backing ≥ required curve backing ≥ token supply × floorDuring an advance, USDC leaves the liquid reserve and the same gross amount becomes debt against locked tokens. Gross backing therefore stays reconciled.
What the floor means for a holder
| You can rely on | You still take risk on |
|---|---|
| The on-chain gross floor cannot decrease through a valid v1 market action | The premium between spot and floor can disappear |
| Canonical buys mint and canonical sells burn against the market reserve | Large trades move along the curve and receive an average execution price |
| Floor capacity can be accessed without selling through an advance | Buy, sell, and advance fees reduce returns |
| The reserve is isolated from creator and LP withdrawals | USDC, contract, upgrade, pause, and execution risk remain |
A direct floor redemption pays USDC and charges the normal 1.25% sell fee. Wallet proceeds equal the gross floor value minus that fee, gas, and conservative rounding.