Graduation & Liquidity

Graduation is when a token moves from trading on Hypad's bonding curve to trading in a decentralized exchange liquidity pool. It's a milestone in a token's life: trading carries on beyond the bonding curve.

The graduation threshold

A token becomes eligible to graduate when its market capitalization reaches $45,000. Reaching that number starts graduation, as long as the exchange and blockchain steps it relies on are available and succeed.

Liquidity migration

When graduation succeeds, the token's liquidity moves from the bonding curve to a decentralized exchange. From then on, the token trades through a liquidity pool on that exchange.

Permanent liquidity locking

When liquidity is added to a pool, the exchange issues liquidity provider (LP) tokens that represent a claim on it. Hypad locks these LP tokens permanently, so the liquidity added at graduation can never be withdrawn through them.

Under Hypad's Terms of Service, any tokens the liquidity pool doesn't need are burned during graduation.

If graduation is delayed

Occasionally graduation can't finish straight away, for example because the receiving exchange refuses the liquidity or can't accept it. When that happens, Hypad's Terms of Service describe what follows:

1. The token stays at 100%

   The token remains at 100% bonding-curve progress.

2. Curve trading pauses

   Trading on the bonding curve pauses while the platform tries the migration again.

3. Selling reopens after three days

   If graduation still hasn't worked after three days, selling through the bonding curve reopens, so nobody's funds stay frozen.

Trading after graduation

Once a token graduates, it trades in the decentralized exchange pool instead of on Hypad's bonding curve.

Graduating doesn't guarantee that people keep buying, that trading volume holds up, or that the price rises.