Graduation & Migration

Graduation is the automated smart contract event where a token transitions from bonding curve to DEX trading.

Exact Graduation Triggers

Primary Trigger: Market Cap Threshold

Current Setting: 12,000 SOMI market cap

function getMarketCap() public view returns (uint256) {
    uint256 mc = (virtualCollateralReserves * 10**18 * totalSupply()) / virtualTokenReserves;
    return mc / 10**18;
}

// Graduation occurs when:
getMarketCap() > mcLowerLimit  // 12,000 SOMI

Expected graduation point (calculated):

• ~800 million tokens sold (80% of supply)

• Virtual collateral reserves: ~750 SOMI

• Virtual token reserves: 1B million tokens

Secondary Trigger: Token Sales Threshold

Current Setting: 800,000,000 tokens sold (80% of supply)

function tokensSold() public view returns (uint256) {
    return totalSupply - balanceOf(address(this));
}

// Graduation occurs when:
tokensSold() >= tokensMigrationThreshold  // 800M tokens

Note: Both triggers are very close - market cap graduation at 12,000 SOMI and token sales graduation at 80% of supply sold. Market cap graduation typically occurs first.

Upper Limit Protection

Safety mechanism: 15,000 SOMI market cap ceiling

// Trading reverts if market cap exceeds upper limit
require(getMarketCap() <= mcUpperLimit, "MarketcapThresholdReached");

This prevents runaway price increases and ensures orderly graduation.

What Happens at Graduation

Automatic Migration Process

1. Trading immediately stops on bonding curve

   tradingStopped = true;

2. Migration flag is set

   readyForMigration[tokenAddress] = true;
   emit MarketcapReached(tokenAddress);

3. Factory calls migrate() function

   function migrate() external onlyFactory returns (
       uint256 tokensToMigrate,
       uint256 tokensToBurn, 
       uint256 collateralAmount
   ) {
       // Calculate migration amounts
       tokensToMigrate = balanceOf(address(this));
       collateralAmount = address(this).balance;
       
       // Transfer to factory for DEX pair creation
       _transfer(address(this), factory, tokensToMigrate);
       factory.transfer(collateralAmount);
   }

4. AMM V2 pair creation

   • Pair contract deployed automatically

   • Initial liquidity added: remaining tokens + collected SOMI

   • Only LP tokens are burned to ensure permanent liquidity

   • Creator tokens remain intact - no project tokens are burned

5. Trading resumes on DEX with standard AMM mechanics

Migration Timeline

Graduation Trigger → Trading Stops → Migration TX → DEX Pair Live
    (Block N)         (Block N)      (Block N+1)    (Block N+2)

User Token Holdings

• No change required: Tokens remain in user wallets

• Same contract address: Token contract address doesn't change

• Full compatibility: Works with all DEX interfaces and aggregators

• Immediate liquidity: Can trade on DEX as soon as pair is live

Liquidity & LP Policy

Initial Liquidity Provision

• Source: Collateral collected during curve phase (no platform tokens provided)

• Amount: Determined by graduation threshold requirements

• Pair Creation: Token/SOMI pair

• Price Setting: Based on final curve price at graduation

• LP Tokens: Only LP tokens are burned immediately after pair creation for permanent liquidity

• Project Tokens: Creator tokens are never burned - they remain fully intact

Post-Graduation Trading

DEX Mechanics

• Standard AMM trading: Uniswap-style swap mechanics

• Market-driven pricing: No more curve mathematics

• Liquidity provider fees: Standard DEX fee structure

• Arbitrage opportunities: Cross-DEX price balancing

Platform Role Changes

• No trading fees: Platform no longer collects curve fees

• Monitoring only: Track token performance and community

• Community programs: May include graduated tokens in rewards

• Technical support: Assist with any migration issues

Benefits of Graduation

For Traders

• Deeper liquidity: Professional market makers may participate

• Lower slippage: Mature DEX pools typically offer better pricing

• Advanced tools: DEX aggregators and trading interfaces

• Arbitrage opportunities: Cross-platform trading possibilities

For Creators

• Legitimacy milestone: Successful graduation validates the project

• Broader exposure: Listed on DEX interfaces and aggregators

• Community growth: Access to wider DeFi ecosystem

• Long-term sustainability: Self-sustaining liquidity model

For the Ecosystem

• Platform scalability: Graduated tokens free up curve resources

• Success stories: Showcase platform effectiveness

• Network effects: More successful projects attract more users

• Economic sustainability: Proven model for token launches

Ready to learn about platform safety? Check out Safety & Risks.