Protocol Mechanics
Bonding Curve & DEX Graduation
Learn how algorithmic pricing works on JoltPad, how progress is measured, and what happens when a token graduates to Uniswap v4.
1. Constant-Product Curve (x * y = k)
Every token launched on JoltPad gets its own isolated Bonding Curve smart contract. Price discovery is fully automated using a constant-product formula:
As buyers purchase tokens using ETH, the ETH reserve increases and the remaining token reserve decreases. This automatically drives the token price higher along an exponential curve. When sellers swap tokens back, the price shifts downwards accordingly.
2. 80% / 20% Supply Division
Each token has a fixed supply of 1,000,000,000 (1 billion) tokens:
- 800,000,000 (80%): Available for public trading on the bonding curve.
- 200,000,000 (20%): Reserved in the curve contract to provide paired liquidity upon DEX graduation.
- No Presale / No Creator Cut: The creator gets 0 free tokens at launch.
3. Graduation Target & Mechanics
When cumulative buys push the real ETH reserve to the fixed graduation target (4× virtual ETH reserve), the bonding curve completes trading and automatically triggers graduation:
- Bonding curve buys and sells freeze immediately.
- All raised ETH + the reserved 200,000,000 tokens migrate to `UniswapV4Migrator`.
- A native ETH/Token pool is initialized on Uniswap v4.
- A full-range liquidity position is minted.
4. LP Lock & Permanent Safety
Liquidity safety is guaranteed at the smart-contract level:
- The Uniswap v4 LP position NFT is minted directly to the permanent burn address (`0x000...dEaD`).
- Neither the token creator nor JoltPad admin can withdraw or drain the DEX liquidity pool.
- Trading continues permanently on Uniswap v4 with open-market pricing.