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Bonding Curve

Every token on Snekfun is priced using a bonding curve — a mathematical formula that automatically sets the price based on supply and demand. There are no order books, no market makers, and no external price feeds.

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How it works

When a token launches, it starts at a fixed starting market cap of 2,550 ADA. As people buy, ADA flows into the pool and the price rises. When people sell, ADA flows out and the price drops. Every trade is instant and always has liquidity available.
The bonding curve calculates the price automatically depending on the amount of ADA in the pool.

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Graduation

When a token’s market cap reaches 69,000 ADA, it graduates from the bonding curve. At that point:
  1. The bonding curve closes
  2. A liquidity pool is created on Splash DEX
  3. LP tokens are burned — liquidity is locked permanently
  4. Trading continues freely on Splash DEX

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The 26x potential

The bonding curve is structured so that a token traveling from its starting market cap of 2,550 ADA all the way to the graduation threshold of 69,000 ADA represents a 26x increase in market cap for the earliest buyers.
This does not guarantee a 26x return. Price depends on when you buy along the curve. Early buyers get a lower price and a higher potential upside — later buyers get a higher price with less room to grow before graduation.

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Price impact

Every trade moves the price. Larger buys push the price up more than smaller ones. You can see the estimated price impact before confirming any transaction.
If you’re buying a large amount, consider splitting it into smaller transactions to reduce your average price impact.

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No liquidity risk

While a token is on the bonding curve, all liquidity is held in the Snekfun smart contract. You can always sell your tokens back into the curve at any time — there is no scenario where liquidity disappears from the smart contract.