Bonding Curve
socials.fun uses a bonding curve to provide instant liquidity for all tokens from creation until graduation.
What is a Bonding Curve?
A bonding curve is a mathematical formula that determines token price based on supply. As more tokens are bought, the price increases. As tokens are sold, the price decreases.
Price = f(Supply)This creates:
- Instant liquidity: Buy or sell anytime, no order book needed
- Predictable pricing: Price is deterministic based on supply
- No slippage uncertainty: You know exactly what you'll pay/receive
How It Works
Token Supply Allocation
| Allocation | Amount | Purpose |
|---|---|---|
| Trading Supply | 610M (61%) | Available on bonding curve |
| LP Reserve | 390M (39%) | Reserved for Raydium CLMM at graduation |
| Total | 1,000,000,000 | Fixed supply, 6 decimals |
Price Mechanics
When you buy:
- You send SOL to the bonding curve
- Curve calculates tokens based on current price point
- You receive tokens, price moves up
When you sell:
- You send tokens to the bonding curve
- Curve calculates SOL based on current price point
- You receive SOL, price moves down
The bonding curve holds all SOL from purchases in a program-controlled vault. This SOL is used for graduation liquidity.
Graduation Threshold
When approximately 50 SOL accumulates in the bonding curve:
- Token becomes eligible for graduation
- Bonding curve trading is disabled
- Token migrates to Raydium CLMM pool
See Graduation for details on the migration process.
Example Trade
Scenario: Token has 100M tokens sold, you want to buy with 1 SOL
Current State:
- Tokens sold: 100,000,000
- SOL in curve: 10 SOL
- Current price: ~0.0000001 SOL/token
Your Purchase:
- You send: 1 SOL
- You receive: ~8,500,000 tokens
- New price: ~0.00000012 SOL/token (price increased)Key Properties
Guaranteed Liquidity
Unlike order book exchanges, you can always:
- Buy tokens (as long as supply remains)
- Sell tokens (as long as you hold them)
No Front-Running
Price is determined by on-chain state at transaction execution. MEV bots cannot sandwich your trades in the traditional sense.
Transparent Pricing
Anyone can calculate the exact price for any trade amount using the on-chain bonding curve parameters.
Technical Details
- Program: Anchor-based Solana program
- Curve Type: Constant product AMM with virtual reserves
- Vault: PDA-controlled SOL vault
- Fees: 1% on buys, 1% on sells (see Fees)