How pump.fun Works: Bonding Curves and Graduation Explained
pump.fun lets anyone launch a Solana token in minutes using a bonding curve. Learn how the curve prices tokens, what graduation means and where the risks sit.
By Mentat Booster Team · · Updated · 2 min read
In this article
pump.fun is a launchpad on Solana where anyone can create a token in a few clicks. If you have launched, or plan to, it helps to understand what happens under the hood, because it explains both the speed of the platform and its risks.
The bonding curve in plain words
On a normal exchange, a price comes from buyers and sellers meeting in an order book or a liquidity pool. A new token has neither. So pump.fun uses a bonding curve: a formula that sets the token's price based on how many tokens have been bought.
- The first buyers pay the lowest price.
- Every purchase moves the price up along the curve.
- Every sale moves it back down.
That means there is always a price and always a buyer or seller on the other side, namely the curve itself. A creator does not have to add liquidity first. Every pump.fun token has the same fixed total supply (one billion tokens at the time of writing), which makes tokens easy to compare.
Graduation
As people buy, more of the curve's tokens are sold. When enough has been bought, the token graduates: its liquidity moves to a normal DEX pool, and trading continues there. pump.fun has its own pool, PumpSwap, and older graduations went to Raydium. The exact threshold is set by pump.fun and can change, so check the platform for current numbers.
After graduation the token trades like any other DEX token, and tools like a volume bot can work with it on the pool.
Why the curve stage is so brutal
pump.fun has a constant stream of new tokens. Each one starts with no history, no holders and no liquidity beyond the curve. Most never fill the curve. The ones that do tend to be the ones that stay visible: they keep trading, so they appear in recently-traded lists and in front of people who might buy.
A token that goes quiet for twenty minutes can sink out of view and never come back. This is why new tokens die, and why creators use a bump bot in the early hours.
Risks to understand
- Concentrated holdings. A few wallets, sometimes including the creator's, can hold a large share. That makes the price easy to push either way. See how to check a token before you buy.
- Scams and honeypots. Fake tokens use the platform too. Read what a honeypot token is.
- Speed. Prices move in seconds. Fees and slippage add up quickly, so see crypto trading fees explained.
Using Mentat Booster on pump.fun tokens
Mentat Booster trades pump.fun curve tokens directly and also handles graduated tokens on PumpSwap, Raydium, Orca, Meteora and other pools. Paste your token's address and the bot checks it can trade the token before any funds move.
Frequently asked questions
What does it mean when a pump.fun token graduates?
Graduation is when enough has been bought on the bonding curve for the token to move to a regular DEX pool. pump.fun sets the exact threshold and can change it.
Can I run a bump bot while a token is still on the curve?
Yes. Mentat Booster trades pump.fun curve tokens directly, which is why a bump bot is a common choice for the first hours of a launch.
Do pump.fun tokens need liquidity to start?
No. The bonding curve provides the pricing from the first trade, so a creator does not have to supply liquidity up front.
This article is for information only and is not financial advice. Crypto trading carries a high risk of loss, and no tool can guarantee price movement or profit.