This article was originally posted by FEG developer and community member Bal Gu on r/FegToken_Offical Reddit Channel.

## Fundamentals

First, let’s start with the fundamentals ofamount how the price is calculated. The price is calculated by the amount of basepair divided by the amounts of tokens.

If you take the current price which is 5.76*10^{-9} you can get it by taking the base supply 1934 fbnb times the price roughly 500$ divided by the token supply 167,7 T

With this, the price can be calculated on the exchange. The best is that nothing else intervenes in this process.

Side notes we will consider mostly the BSC side but the same applies to the ETH side as well.

## Let’s have some fun

Now suppose that we would buy 1 BNB worth of feg without any sell ( I know impossible but just for the sake of demonstration). Here would be a graph based on the next 50k trades that would all be of 1BNB on a classical DEX. Now, how many trades of 1 BNB would we need to get back to the ATH. So the ATH was at 55k/T so 5,5k*10^{-8}

To achieve this we would need 4066 trades leaving us with 54T and 6002 fbnb

Also as you can see on the graph the price is increasing exponentially with the supply decreasing in the LP pool.

## But are we a normal DEX?

I hope that you all know that the answer to this is obviously no. What do we have that other DEX’s don’t have?

FBNB and weighted buys (soon also one more feature)

## FBNB

What makes our DEX so special is that even if there are no buys on FEG the price is still increasing. That’s because of the FBNB who are getting reflections. Recall from above what makes the price move?

Exactly more base pairs ( fbnb) or fewer tokens will increase the price of the token itself.

To this did you also know that feg has 10% of the total fbnb? This means that on each BNB they feg get 0.001 BNB added to its liquidity. So on 1M$ trading (2000 BNB) feg receives 2 free BNB added to its liquidity out of nowhere.

So suppose that we would have 1M of trade volume which is literally not a lot. That would then be an increase from 5700 /T-> 5900/T in 1 month.

Now let’s crank it up and say 10M trade volume that would be 5700/T -> 7400/T in one month supposing there would be no trade on it at all.

Now let’s dream a bit of the feature where we would hit 100M trade volume on fegex that would be 5700/T -> 23000/T in one single month without trade. Mindblowing isn’t it?

## Weighted buys

Now you surely would ask yourself. FBNB sounds nice but this means that the buyer would get only 0.99 of BNB worth rather than 1. What if I told you that from founding the magical way to reward fbnb holders and still get you 1BNB worth of a buy?

That’s exactly what is happening. This means you get a little bit more to be equal to a 1:1 buy instead of a 1:0.99 buy. So in the end, you receive a bit more. Recall from above what makes the price move again? Exactly tokens decrease, base-pair increase. Herewith the bonus the tokens decrease a bit as well.

So on a buy, you literally have the two conditions that are filled naturally but on FEGex you have a bonus on both sides meaning that this increases the price even more.

## Now let’s redo the fun part

Here we will assume a 1 BNB buy per trade and no sell again. We also assume that each trade is done on feg only. (meaning that the actual result is guaranteed to be bigger than what I will show)

To show the impact of it we will do 5000 trades all at 1BNB. The notation 1:x means that for each 1BNB that gets bought on feg x BNB gets traded on another pair on FEGex.

So for 5k trades, there is already 11$ per T of a difference and this is from the offsets and BNB rewards alone. This doesn’t contain trades on FEGex on the other pairs.

On the 1:1 we have 12$/T and for the 1:10 we would be at a bonus of 23$/T this might sound small but over time this makes a big difference over the days. That’s based on 2,5M trade volume and as always volume is king.

## Side note

Do you want your feg to grow? Help the ecosystem by trading on fegex. With this, your feg will naturally gain more value over time. Also, don’t forget that other pairs do buy and burn some feg. It might sound ridiculous that it’s always 10B by 10B but also recall that you can’t buy more than the supply has to offer. This makes also important to hold and you can also see how fast it will grow.

To this we haven’t even talked about, smartswap, gas rebate, presale burn, and all the other features of fegex that contributed to the positive price pressure. Recall also that all the buy and burn are on fegex which pushes the price up as well.