Graduation

How launchpad tokens graduate to the AMM when the dynamic threshold is reached

Graduation

Graduation is the process of migrating a token from its bonding curve to the AMM. This happens automatically when the curve accumulates enough XYZ reserves, creating a deep liquidity pool for open market trading.

Graduation Threshold

A token graduates when its bonding curve reaches its dynamic XYZ threshold in reserves. The threshold is computed from the oracle XYZ/USD price and configured USD targets (e.g., ~$2,000 raised), and can only ratchet upward as the oracle price changes.

┌─────────────────────────────────────────────────────┐
│  Bonding Curve                                       │
│  ████████████████████████████░░░░░░░  75% to grad   │
│  XYZ reserves: 75% of threshold                      │
└─────────────────────────────────────────────────────┘

You can check any token’s progress toward graduation:

{ "progress": { "token_address": "<cw20_token_address>" } }

Returns progress_percent, xyz_raised, and graduation_threshold.

How Graduation Works

1. Threshold is reached
2. A buy transaction pushes the curve’s XYZ reserves to or above the graduation threshold. Graduation triggers automatically as part of that buy transaction.
3. Curve closes permanently
4. The bonding curve is marked as graduated. No more buys or sells can happen on the curve.
5. Liquidity migrates to AMM
6. All remaining assets move to a new AMM pool:
8. AMM pool opens for trading
9. A new constant-product AMM pool is created with the migrated liquidity. Trading continues on the AMM with x*y=k mechanics.

What Changes After Graduation

Aspect	Before (Bonding Curve)	After (AMM)
Price model	Linear curve	Constant product (x*y=k)
Liquidity	Guaranteed by curve formula	Pool-based, deeper with more volume
Buy fee	0.5%	1% swap fee
Sell fee	2.5% (to LP)	1% swap fee
Price direction	Always up with buys	Market-driven (can go up or down)

Manual Graduation

Graduation usually happens automatically during a buy. However, if a token has reached the threshold but hasn’t graduated (edge case), anyone can trigger it manually:

{
  "graduate": {
    "token_address": "<cw20_token_address>"
  }
}

This is permissionless — no funds required, anyone can call it.

Post-Graduation Trading

After graduation, use the AMM to trade:

• Buy tokens: Swap XYZ for tokens on the AMM
• Sell tokens: Swap tokens for XYZ on the AMM
• Check price: Query the AMM pool for current reserves and price

The AMM may charge an augmented fee (up to 5%) on top of the base 1% swap fee for newly graduated pools. This extra fee auto-disables once the pool reaches a target value, ensuring fair price discovery during the transition period.

Next Steps

AMM Overview

Understand how the AMM works

AMM Swapping

Trade tokens on the AMM