Bonding Curve

An automated market maker mechanism that determines token price based on supply and demand, used by pump.fun to manage token launches.

A Bonding Curve is a mathematical formula that automatically determines the price of a token based on its circulating supply¹. On pump.fun, this mechanism ensures fair and transparent token launches.

As of October 2025, bonding curve parameters and graduation thresholds are subject to platform updates.

How Bonding Curves Work

The bonding curve creates a direct relationship between:

Token Supply: Number of tokens in circulation
Token Price: Cost to buy the next token
Market Cap: Total value of all tokens

pump.fun Implementation

On pump.fun, the bonding curve:

Starts at a low price when few tokens are minted
Increases price as more tokens are purchased
Reaches graduation at ~$69,000 market cap²
Migrates to Raydium for open market trading

Key Benefits

No rug pulls: Liquidity is locked in the curve
Fair launch: Everyone pays market price
Predictable pricing: Mathematical formula determines cost
Instant liquidity: No need to wait for market makers

Trading Implications

Early buyers get lower prices
Price increases with each purchase
Selling pressure can push prices down the curve
Large buys can significantly move price up

Understanding bonding curves is essential for successful pump.fun trading.

Sources

Bonding Curve Mechanics: Automated Market Maker Theory (opens in new tab) - Mathematical foundations of AMM pricing
Pump.fun Graduation Process: Pump.fun Documentation (opens in new tab) - Current graduation threshold as of October 2025

Disclaimer: Bonding curve parameters and graduation thresholds may change based on platform updates. Always refer to official pump.fun documentation for current specifications.