Dynamic Bonding Curve Overview

The Dynamic Bonding Curve program is a launch pool protocol that allows any launch partners to enable their users to launch tokens with customizable virtual curves directly on their platforms. With direct integration into Jupiter and other trading platforms, traders can trade these launch tokens immediately across all these integrations. The Virtual Cuvre program provides a few benefits:

Launch partners can have different configurations for their launch pools, for example, customizable quote token (SOL/USDC/etc), customizable curve for token graduation, customizable fees, etc.
Users on these launch platforms can easily create tokens and launch pools directly with the partners' configurations directly on their partners' UI.
Trading platforms/bots can immediately trade on these tokens with our direct integrations.
Tokens will graduate to various AMM (rightnow we only support Meteora DAMM v1 and Meteora DAMM v2), based on partner configuration. With locked LP tokens, launchers can claim fees on the locked LPs.
Full API supports for easy integration for launch partners and trading platforms/bots.

Notable Features

multiple quote tokens support: SOL, USDC, etc
SPL Token and Token2022 support
fee scheduler + dynamic-fee
flexible fee collect mode (ex: collect fee only in quote token)
customizable liquidity distribution (up to 20 price ranges with different liquidity curve)

Customizable Fees

Virtual pool will collect trading fee evey time user trade with that pool (buy or sell).
A percentage of trading fee will be paid to the Dynamic Bonding Curve protocol. A swap host (Jupiter/Photon/Trading bots) can submit the swap transaction with a referal account to get some referal fee as part of protocol fee. The rest of trading fee belongs to partner.
After token has graduated and is migrated, LP is locked for partner and token creator. The ratio of the locked LP is based on what partner has configured in the configuration. With this, partner and token creator can claim fees based on the locked LP on Meteora DAMM.
The last swap will create a surplus on quote token, that will be shared between the partner and the protocol.

Customizable Pool Configuration

Partner can specify these parameters when they create a configuration on all their pools:

pool_fees: include base_fee and dynamic_fee (optional). Partner can add fee scheduler in base_fee or just a fixed fee. pool_fees defines the trading fee for any pool that is created from this configuration.
collect_fee_mode (0 | 1): 0 means the virtual pool will only collect fee in quote token, 1 means virtual pool will collect fee in both tokens.
migration_option: right now we only support migration to Meteora DAMM, so partner must set the value as 0 for this field.
activation_type (0 | 1): 0 means slot, 1 means timestamp, this field indicates the time unit that pool will work with, mostly in calculating fee scheduler and dynamic fee.
token_type (0 | 1): 0 means SPL Token, 1 means Token2022.
token_decimal: the token decimals that the token will use when user creates the virtual pool with this configuration, we only support token decimals from 6 to 9.
partner_lp_percentage: the percentage of LP that partner can claim after token is migrated.
partner_locked_lp_percentage: the percentage of LP that partner will locked after token is migrated.
creator_lp_percentage: the percentage of LP that creator can claim after token is migrated.
creator_locked_lp_percentage: the percentage of LP that creator will be locked after token is migrated.
migration_quote_threshold: the threhold for quote token, that after virtual pool reserve get such quote token amount, the token will graduate from the launch pool and will be migrated.
fee_claimer: the address of partner that can claim trading fees from the virtual pools as well as fees from the locked LPs.
owner: owner of the configuration.
quote_mint: the quote mint address that virtual pool will support.
migration_fee_option: allow partner to choose a fee option on graduated pool (currently support 0.25% | 0.3% | 1% | 2%)
token_supply: when the fields are specified, token will have fixed supply in pre and post migration, leftover will be returned to leftover_receiver (configured in config key)
sqrt_start_price: square root of min price in the bonding curve for the virtual pools.
curve: an array of square price and liquidity, that defines the liquidity distribution for the virtual pools.

Bonding Curve

A simple constant product x * y = virtual_base_reserve * virtual_curve_reserve can be presented as x * y = liquidity * liquidity, while liquidity = sqrt(virtual_base_reserve * virtual_curve_reserve). With a contraint on migration_quote_threshold, it can be presented as a function of liquidity, min_price, max_price. We denote liquidity = l, min_price = pa, max_price = pb. So we have:

bonding_curve_constant_product = function(l, pa, pb)

On our dynamic bonding curve protocol:

bonding_curve = function([l_i, pa_i, pb_i])

That means partner can configure a bonding curve with any liquidity distribution up on their strategy.

For example, if the pool has this configuration:

sqrt_start_price = 1
curve = [sqrt_price = 2, liquidity = 100), (sqrt_price = 4, liquidity = 500)]

Then the bonding curve will function of 2 price ranges: (l = 100, pa = 1, pb = 2) and (l = 500, pa = 2, pb = 4).

Development

Dependencies

anchor 0.31.0
solana 2.1.0
rust 1.79.0

Build

Program

anchor build -p dynamic_bonding_curve

Test

pnpm install
pnpm test

Program Address

Mainnet-beta: virEFLZsQm1iFAs8py1XnziJ67gTzW2bfCWhxNPfccD
Devnet: virEFLZsQm1iFAs8py1XnziJ67gTzW2bfCWhxNPfccD

Config key for migration

Meteora damm (v1):

migration_fee_option == 0: EtwbXRxV8b46Vkho5EhMshi9qEU7xv6sMQnPHK3fX8WR
migration_fee_option == 1: VEtZapzJXreco3cbzUT8ZszawsRvRRQzGN5GBaCMwWh
migration_fee_option == 2: 8z2tYtwiAkby1tMSdf1hG2Ni8MFBk43o9tYey5zegNDh
migration_fee_option == 3: 3BuQgW3g75azhKeE3yzaqeWkmwezuDGwF6FT5py3mFrt

Damm v2:

migration_fee_option == 0: 96gRhsiKyBJnXT2GxEnh54b9YLjzpEJ4aTetvLmQ5tWj
migration_fee_option == 1: 3GZLmQJ98xPRLNJjofzK3bfvhU11WFCiZJhEuPwgfBHb
migration_fee_option == 2: 7aqweHmWjiMJEVzTXjvpEasRiDQSK79GNWPqjbkeWtyL
migration_fee_option == 3: 6ym6zMi5RqUH3k2BNdiXUtSdpeypdWMLsxTyRhKqzhz2

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