According to Foresight News, a new mechanism known as ERC-1919 has been introduced by AIR on Base. The ERC-1919 is designed to address the issue of liquidity being maliciously attacked by anonymous developers, a problem that is not necessarily due to a lack of liquidity in DEX transactions.
The concept of ERC-1919 is not difficult to understand. In fact, it is simpler than the regular Uni V3 or even Uni V2 pools. In other words, if ERC-1919 is used, there is no need for a DEX or for LP to provide liquidity for the pool.
Instead of using the traditional 50/50 LP model to determine prices based on supply and demand, a multi-tiered grading mechanism is used. In this specific case, prices increase or decrease by a predetermined Delta value of 0.8% per tier.
The number of tokens per tier is predetermined in the contract. If demand surges, prices will rise and ETH earnings will decrease relatively. When selling pressure exceeds buying pressure, the price will fall back to the previous level. If the buy/sell order is too large and a single price point cannot handle it, it will fill the nearest tier and then continue to upgrade or fall back.
The advantage of this system is that you know what you will get from the system. Once you sell the tokens, their level will decrease (and be destroyed).
The charm of this mechanism lies in its potential in various future use cases, such as improved Dutch auctions and tier-based node sales. In addition, it has been found that this method completely eliminates the problem of transaction counterparty risk (because developers cannot Rug after launching LP), which is very cool.