Forward the Original Title: How to Get Started with Rug.fun

Base is becoming a hub for memecoin launcher apps.

For example, the Clanker tokenbot has picked up huge steam with Farcaster users, Ethervista’s Etherfun service just deployed on the L2, and ƒlaunch is preparing to release its Uniswap V4-powered platform in short order.

But one up-and-coming project here sticks out as particularly unique thanks to its gamefied approach, and it’s rug.fun.

Created by the Context team, rug.fun streamlines token creation, introduces an AI twist, and uses a prize pool mechanic to reward only the strongest coins. Let’s get you up to speed on the ins and outs of this new platform accordingly!

How does rug.fun work?

Rug.fun is designed for “fair launch” memecoin releases. Its new underlying protocol and token smart contracts work in concert to power trustless and transparent memecoin deployments.

When users create a new token on the platform, a presale process is initiated that runs for 24 hours. A fixed price of 0.000000004 ETH per token is set for 500,000,000 tokens, with the aim being to raise 2 ETH during the presale.

New coins that raise 2 ETH within 24 hours graduate to “Launched” and are automatically transitioned to a locked Uniswap V3 liquidity pool. Conversely, coins that fail to raise the required amount are “rugged,” and their liquidity is moved to the Dotto Prize Pool.

As for Dotto, this is the app’s native AI agent, created to amplify the most promising tokens launched on rug.fun. Both an evaluator and a participant, Dotto analyzes social engagement and then selects one standout coin per week from the pool of successfully launched tokens.

When Dotto picks a coin, it injects 5% of its Prize Pool into that token’s liquidity, boosting its market on Uniswap. With the first buy coming up on Friday Nov. 29th, users can influence Dotto’s decisions by engaging with @rugdotbot on X, offering a social gamification twist.

Making a coin on rug.fun

First, you’ll need some ETH on Base to get started. With that ready, head to the rug.fun platform and sign in with your wallet. Then press the “Launch” button in the upper right side of the homepage, after which you’ll be taken to the creator interface like so:

Here you would input your desired token name, ticker symbol, and coin image. Then click the box indicating you understand the terms and press “Launch coin” to proceed. You can then track your presale and buy in via finding your new project in the “Coins created” tab of your profile.

Just remember: these are fair launch-style drops, so you won’t receive an automatic allocation to yourself. Also, keep in mind liquidity will be rugged to the Dotto Prize Pool if 2 ETH isn’t raised in 24 hours, so only invest with ETH that you can afford to lose.

Buying presale coins on rug.fun

If you’re interested in betting on coins, you can start by browsing the rug.fun homepage for new launches across various categories like Trending, New, or Holders, which spotlight active presales.

Once you’ve spotted a token that catches your interest, click on it to arrive on its dedicated trading page. Each coin page provides detailed stats, including the current market cap, trading volume, and the number of holders. You’ll also see a live feed of recent buy and sell transactions, giving you a closer look at recent activity.

Here you’ll also find “Buy” and “Sell” interfaces, which work atop the underlying rug.fun protocol or atop Uniswap V3 in the case of successfully launched tokens. Use these widgets to manage your positions. Other helpful links like Dexscreener and Basescan let you analyze related trading action in depth as you’re surfing around.

Zooming out

In repurposing liquidity from failed projects to reward the strongest coins, rug.fun notably incentivizes quality over quantity.

In other words, the central Dotto Prize Pool, which is a unique mechanism among the current class of memecoin launchers, directs attention and funding to projects that show both technical success (through presale completion) and social backing.

All that said, what I personally like most about rug.fun is that it’s an experiment that marks a rethinking of how a decentralized app can optimize for both fun and functionality. The platform also highlights the potential of Base as a creative sandbox for quirky projects that would be too expensive on Ethereum proper. Keep it on your radar accordingly.

Disclaimer:

1. This article is reprinted from [bankless]. Forward the Original Title: How to Get Started with Rug.fun. All copyrights belong to the original author [William M. Peaster]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.