> For the complete documentation index, see [llms.txt](https://docs.socio.family/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.socio.family/for-traders-and-investors-trading-mechanics/the-bonding-curve-and-uniswap-graduation.md).

# The Bonding Curve & Uniswap Graduation

Every Creator Shares token has a built-in **bonding curve** that sets its price — and a well-defined path to "graduating" into full DeFi liquidity.

## What is a bonding curve?

A bonding curve is a mathematical formula that determines a token's price based on its **supply**. The core principle:

{% hint style="success" %}
**The more shares that are bought, the higher the price becomes.**
{% endhint %}

* **Early buyers** get the lowest prices.
* **Later buyers** pay more as demand pushes the curve up.
* **Sellers** exit at the current curve price (minus fees).

This creates a natural, transparent price-discovery mechanism — no order books, no market makers, no dark pools. The price is what the math says it is.

## Why it matters to you

| Aspect                 | How the curve handles it                                  |
| ---------------------- | --------------------------------------------------------- |
| **Fair pricing**       | The price is algorithmic and visible to everyone          |
| **Early upside**       | Buying early on the curve can mean lower entry prices     |
| **Liquidity**          | The curve always has an available price to buy or sell at |
| **No rug-style dumps** | Supply mechanics keep things orderly                      |

## Graduation: from bonding curve to Uniswap

Every creator group has a **graduation threshold** — a target the token's supply/value must reach.

1. **Bonding phase** — early trading happens entirely on the bonding curve.
2. **Threshold reached** — when the token hits its target, it "graduates."
3. **Uniswap listing** — trading automatically transitions to **official Uniswap liquidity pools**, opening the token to the broader DeFi market.

{% hint style="info" %}
**Why graduate?** Bonding curves are great for launching; Uniswap pools are great for scale. Graduation gives successful tokens **permanent, deep liquidity** and access to every trader on the Robinhood Chain ecosystem.
{% endhint %}

## What graduation means for holders

* **Broader market access** — anyone on Uniswap can now trade your token
* **Deeper liquidity** — bigger trades with less slippage
* **Permanent infrastructure** — the token's liquidity is designed to be locked and durable

## The journey of a token

```
 Launch ──► Bonding curve (early price discovery)
                 │
                 ▼
        Graduation threshold reached
                 │
                 ▼
      Uniswap pools (full market access)
```

**Next:** learn about the protection that makes early adoption safe.


---

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