How it works

How Clanker Deploys Tokens and Fees Work

Clanker simplifies token deployment on the Base network and introduces rewards for both users (Requestors) and the protocol. Here's a breakdown of how it works.

1. Token Deployment Process

When a user tags Clanker in a cast with a token name, ticker, and optional image, the following happens:

  1. Token Creation:

    • Clanker deploys a new ERC-20 token on the Base network using its Clanker.sol smart contract.

  2. Uniswap V3 Pool Creation:

    • A Uniswap V3 pool is initialized with a starting market cap of approximately $30,000.

  3. Liquidity Provision:

    • Clanker adds single-sided liquidity to the Uniswap V3 pool by sending the ERC-20 tokens to Uniswap’s Nonfungible Position Manager.

  4. Liquidity Locking:

    • The liquidity (LP) NFT is locked for a default period of 2100 years (yes, you read that right!).

2. Fee Structure

Clanker deploys tokens with a 1% fee Uniswap V3 pool. Here’s how the fees are split:

  • 60% of swap fees go to the Clanker Protocol.

  • 40% of swap fees go to the Requestor (the user who requested Clanker to deploy the token).

For example: If a token generates $1,000 in swap fees:

  • $600 goes to Clanker.

  • $400 goes to the Requestor.

3. How to Claim Rewards

Rewards are collected as fees from token trades on the Uniswap V3 pool.

Current Claiming Process

  • Rewards for tokens deployed before November 18, 2024 were claimed and distributed manually by the Clanker DevCo team.

  • WETH rewards have already been distributed. Token rewards are currently being processed.

Upcoming Self-Service Rewards

  • In future updates (v2 contracts, ETA November 29, 2024), Requestors will be able to claim their rewards directly:

    • Through the token’s page on clanker.world.

    • By interacting with the smart contract directly on a blockchain explorer like Basescan.

4. Summary

  • Clanker deploys tokens on Base and creates a Uniswap V3 pool.

  • Requestors earn 40% of all trading fees from their token’s pool.

  • Rewards will soon be claimable directly through Clanker’s website or smart contracts.

Quick Links

With Clanker, deploying tokens is fast, automated, and rewarding. By earning a share of the swap fees, you can benefit from the success of the tokens you launch. 🚀

Ready to deploy your token? Learn how to launch a token with Clanker.

PreviousHow to Launch a Token

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