What this is

Pons lets a memecoin trade against a tokenized stock. Pick NVIDIA and the coin is priced in NVIDIA, graduates in NVIDIA, and pays its creator in NVIDIA. This is the same idea with money: pick Canadian dollars and the coin is priced, bought and paid out in Canadian dollars.

158 currencies are supported, from the euro and the yen to the Mexican peso and the South African rand. The choice is made at launch and cannot be changed afterwards.

Where currency tokens come from

Nobody issues Canadian dollars on this chain, so the issuer does. Each currency is an ordinary token whose whole supply is placed into a Uniswap position exactly one tick wide. A one-tick position is not a curve, it is a flat sell wall: the entire supply sells at a single price, which is what a currency wants. Listing one costs only gas, because the token side is minted and no dollars are ever put up.

A keeper moves that wall whenever the real exchange rate drifts, and that movement is the only thing keeping the token honest. Rates come from two independent sources and are acted on only when they agree.

To sell a currency back, the vault buys it out of the dollars that same currency’s wall has already collected. Each currency has its own pot, so the vault can never owe more than it holds and one currency can never drain another.

Launching a coin

Give the coin a name, a ticker and a picture, pick its currency, and optionally set a creator tax of up to 10% on every trade. The launch fee is 0.0005 ETH, matching Pons. A first buy is bundled into the same transaction, and it is what puts currency into the pool on the other side of your coin.

Supply is fixed at one billion. Around seven hundred million are sellable on the curve; the rest is held back to keep the market liquid once the curve is done.

Trading and fees

Every trade pays 1%, split 70% to the creator and 30% to the protocol, plus whatever creator tax was set. All of it is denominated in the coin’s currency, never in dollars.

Most people have never held a Thai baht token, so buying accepts ETH or USDG too: the swap into the coin’s currency happens inside the same transaction, and the coin is priced in its own currency either way.

Graduation

A coin launched on the concentrated curve is tradable on Uniswap from its first block — its supply sits in a one-sided position that fills as people buy. When the price reaches the top of that range the position migrates into a permanent full-range pool that the launchpad can never move, so the liquidity cannot be pulled.

Graduation depends on demand. A coin may never reach its graduation threshold.

What can go wrong

These are not bank deposits. A currency token is a token that tracks a rate through a wall the issuer maintains. It carries no redemption guarantee and no deposit insurance.