Bonding Curve Basics

Trade against a constant product curve with guaranteed liquidity and predictable pricing.

How It Works

k = virtualCollateralReserves × virtualTokenReserves = constant
currentPrice = virtualCollateralReserves / virtualTokenReserves

Current Parameters:

• Total Supply: 1B tokens

• Virtual Token Reserves: 1B tokens

• Virtual Collateral Reserves: 750 SOMI

Trading Mechanics

Buying: SOMI goes in → tokens come out → price increases Selling: Tokens go in → SOMI comes out → price decreases Fees: 1.3% total (1.25% platform + 0.05% creator) - see Economy & Fees

Trading Tips

Slippage: Set 2-5% for normal trades, higher near graduation Large trades: Break into smaller chunks to reduce price impact Near graduation: Expect higher volatility and momentum effects

Common Mistakes

• High slippage: Using 10%+ slippage unnecessarily

• Ignoring status: Not checking if token is near graduation

• Large single trades: Not splitting big orders to reduce impact

Graduation

Tokens automatically graduate to DEX when thresholds are met. See Graduation & Migration for details.

For detailed examples and scenarios, see Example Scenarios.

Ready to understand what happens next? Learn about Graduation & Migration.