> 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/pair-economics.md). # Pair Economics Each pairing asset on Hello.Fun has market economics that define how launches using that asset progress from the bonding curve to graduation. This allows Hello.Fun to support different pairing assets while keeping the launch lifecycle consistent. ### Why Pair Economics Matter Different pairing assets can have different market characteristics. Hello.Fun therefore does not require every approved pairing asset to use identical launch economics. Instead, economics can be configured for each approved pairing asset. ```mermaid flowchart TD A["Approved Pairing Asset"] --> B["Pair Economics"] B --> C["Bonding Curve"] B --> D["Graduation Conditions"] C --> E["Launch Market"] D --> F["Graduation"] ``` These economics apply to launches created with that pairing asset. ### Pair Configuration The pairing system defines two important economic parameters for each supported pairing asset: * Phantom liquidity * Graduation threshold Together, these parameters influence how the bonding curve operates and when a launch becomes ready to graduate. ### Phantom Liquidity Phantom liquidity is a parameter used by the bonding curve to establish its market behavior. It forms part of the mathematical structure of the curve rather than representing additional assets deposited by the creator. It helps define how the market begins and how pricing develops as users trade. ```mermaid flowchart LR A["Pair Configuration"] --> B["Phantom Liquidity"] B --> C["Bonding Curve"] C --> D["Market Pricing"] ``` Phantom liquidity should not be confused with the actual reserves accumulated through trading. Actual reserves are built through market activity. ### Graduation Threshold Each pairing configuration defines a graduation threshold. The threshold determines when a launch has progressed far enough through its bonding curve to become ready for graduation. For the current ETH pair configuration, the graduation threshold is **4.2 ETH**. ```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 specifically to current ETH paired launches. Future supported pairing assets can use their own configured graduation thresholds as they are introduced. ### Reserves Are Real Market Assets While phantom liquidity is part of the bonding curve calculation, the reserves accumulated through trading represent actual assets held by the launch. These reserves build as users interact with the market. When graduation occurs, the accumulated reserves are moved through the graduation process and used to establish the Uniswap v4 liquidity market. ```mermaid flowchart TD A["Trading Activity"] --> B["Actual Reserves Build"] B --> C["Graduation"] C --> D["Uniswap v4 Liquidity"] ``` ### Economics Are Set Before Launch The relevant pair economics are established when a launch is created. Once the token has launched, its market does not automatically adopt later changes made to the pairing configuration for future launches. This keeps an existing launch tied to the economics established when its market began. ### Changes Apply to New Launches Hello.Fun can update the configuration of an approved pairing asset for future launches. It can also change whether a pairing asset is available for new launches. These changes do not rewrite existing markets. ```mermaid flowchart TD A["Pair Configuration"] --> B["Existing Launch"] A --> C["Future Launch"] D["Later Pair Update"] --> C B --> E["Original Launch Economics Remain"] ``` This separates the management of future pair availability from markets that are already live. ### Pair Approval and Pair Economics Pair approval and pair economics serve different purposes. **Pair approval** determines whether a pairing asset is available for new Hello.Fun launches. **Pair economics** determine how launches using that approved asset behave during the bonding curve stage and when they become ready to graduate. An asset therefore needs to be supported as a pairing asset before creators can select it for new launches. Its configured economics then determine the market structure used by those launches. Together, these settings define how an approved pairing asset operates within the Hello.Fun launch system. ### From Pair Economics to Open Market Pair economics guide the token through its initial market stage. ```mermaid flowchart LR A["Pair Economics"] --> B["Bonding Curve"] B --> C["Trading"] C --> D["Graduation Conditions"] D --> E["Graduation"] E --> F["Uniswap v4 Market"] ``` Once graduation is complete, the token transitions into its Uniswap v4 liquidity market. The pair remains the same, while the market moves from the bonding curve into open liquidity. ### Built for More Markets The pairing system gives Hello.Fun a foundation for supporting additional approved assets without requiring every market to behave identically. Each pairing asset can have economics suited to its market while following the same overall lifecycle: **Launch → Bonding Curve → Graduation → Uniswap v4** For the currently live ETH pair, that lifecycle includes the **4.2 ETH graduation threshold**. This is what allows pairing to be more than a label on Hello.Fun. It is part of how each market is built. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. 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