> For the complete documentation index, see [llms.txt](https://hello-fun-1.gitbook.io/hello.fun-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hello-fun-1.gitbook.io/hello.fun-docs/bonding-curve/graduation.md). # Graduation Graduation is the point where a Hello.Fun token moves from its bonding curve into a Uniswap v4 liquidity market. It connects the token's initial market with its continuing market. The token does not relaunch and the pair does not change. The market transitions. ### When Does Graduation Begin? Each launch progresses toward a graduation threshold defined by the economics of its pairing asset. For current ETH paired launches, the graduation threshold is **4.2 ETH**. As users trade through the bonding curve and the launch reaches the **4.2 ETH threshold**, it becomes ready to graduate. ```mermaid flowchart LR A["Bonding Curve Trading"] --> B["Market Progress"] B --> C["4.2 ETH Graduation Threshold"] C --> D["Ready to Graduate"] ``` The 4.2 ETH threshold applies to the current ETH pair configuration. Other supported pairing assets can use their own configured graduation economics as they are introduced. ### What Happens at Graduation? Graduation takes the reserves built through bonding curve activity and uses them to establish the token's Uniswap v4 market. The process takes place in two core stages: * The reserves are moved from the completed bonding curve. * The reserves are used to seed the Uniswap v4 pool. ```mermaid flowchart TD A["Graduation Ready"] --> B["Reserves Moved"] B --> C["Uniswap v4 Pool Created"] C --> D["Liquidity Seeded"] D --> E["Liquidity Position Created"] E --> F["Liquidity Locked"] ``` This connects the value accumulated during the bonding curve stage with the liquidity available after graduation. ### The Market Price Continues Graduation is designed as a transition between two market structures. The opening state of the Uniswap v4 market is derived from the terminal state of the bonding curve. This connects the market formed before graduation with the market created afterward. ```mermaid flowchart LR A["Final Bonding Curve State"] --> B["Graduation"] B --> C["Opening Pool State"] C --> D["Uniswap v4 Market"] ``` ### The Pair Remains the Same Graduation does not replace the token's pairing asset. A token that begins against ETH continues against ETH after graduation. The same principle applies to supported pairing assets within the Hello.Fun pairing system. The trading mechanism changes from the bonding curve to Uniswap v4. The pair remains part of the market. ### Automatic Graduation When the launch reaches the required state, the protocol can attempt to complete graduation as part of the market process. This reduces the need for a separate creator action to establish the next market. The creator does not need to manually create the Uniswap v4 liquidity pool. ### Permissionless Completion Graduation is not dependent on one specific wallet. If automatic graduation does not complete successfully, the protocol allows another user to complete the graduation process. ```mermaid flowchart TD A["Ready to Graduate"] --> B["Automatic Graduation Attempt"] B --> C{"Completed?"} C -->|Yes| D["Uniswap v4 Market Live"] C -->|No| E["Graduation Remains Available"] E --> F["Another User Completes Graduation"] F --> D ``` This helps prevent a ready launch from depending on the creator or a single platform wallet to complete the transition. ### Liquidity Creation Graduation creates a full range Uniswap v4 liquidity position. The liquidity comes from the launch process rather than from a separate liquidity contribution by the creator. Once created, the position is transferred to the Hello.Fun liquidity locker. ### Permanent Liquidity Lock The graduated liquidity position is permanently held by the liquidity locker. The locker does not provide a function for withdrawing, unlocking, transferring or removing the liquidity principal. ```mermaid flowchart LR A["Uniswap v4 Liquidity Position"] --> B["Hello.Fun Liquidity Locker"] B --> C["Liquidity Remains Locked"] ``` The creator does not receive control of the graduated liquidity position. ### What Happens to Remaining Token Supply? The amount of token supply used when establishing the graduated market is determined by the market state required to preserve the opening price. Any remaining supply that cannot enter the pool without changing that opening price is moved into the protocol's residual vault. The residual vault does not provide a withdrawal function. This keeps the graduated pool aligned with the market state established by the bonding curve. ### Trading After Graduation Once graduation completes, normal trading moves to the Uniswap v4 market. ```mermaid flowchart LR A["Bonding Curve"] --> B["Graduation"] B --> C["Uniswap v4"] C --> D["Continued Trading"] ``` Users continue trading the same token against the same pairing asset. The difference is that trades are now executed through the graduated liquidity market. ### From Curve to Open Market Graduation is the bridge between the two stages of a Hello.Fun market. **Bonding Curve → 4.2 ETH Threshold → Graduation → Uniswap v4** The bonding curve creates the starting market and builds reserves. For current ETH paired launches, reaching the **4.2 ETH graduation threshold** makes the launch ready to graduate. Graduation moves the accumulated reserves into liquidity. The liquidity is permanently locked. 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