> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xyzchain.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Graduation

> How launchpad tokens graduate to the AMM when the dynamic threshold is reached

# Graduation

Graduation is the process of migrating a token from its bonding curve to the [AMM](/amm/overview). This happens automatically when the curve accumulates enough XYZ reserves, creating a deep liquidity pool for open market trading.

## Graduation Threshold

A token graduates when its bonding curve reaches its **dynamic XYZ threshold** in reserves. The threshold is computed from the oracle XYZ/USD price and configured USD targets (e.g., \~\$2,000 raised), and can only ratchet upward as the oracle price changes.

```
┌─────────────────────────────────────────────────────┐
│  Bonding Curve                                       │
│  ████████████████████████████░░░░░░░  75% to grad   │
│  XYZ reserves: 75% of threshold                      │
└─────────────────────────────────────────────────────┘
```

You can check any token's progress toward graduation:

```json theme={null}
{ "progress": { "token_address": "<cw20_token_address>" } }
```

Returns `progress_percent`, `xyz_raised`, and `graduation_threshold`.

## How Graduation Works

<Steps>
  ### Threshold is reached

  A buy transaction pushes the curve's XYZ reserves to or above the graduation threshold. Graduation triggers automatically as part of that buy transaction.

  ### Curve closes permanently

  The bonding curve is marked as `graduated`. No more buys or sells can happen on the curve.

  ### Liquidity migrates to AMM

  All remaining assets move to a new AMM pool:

  * **XYZ reserves** -- All XYZ locked in the curve becomes the XYZ side of the pool
  * **Unsold tokens** -- All tokens still held by the launchpad become the token side of the pool

  ### AMM pool opens for trading

  A new constant-product AMM pool is created with the migrated liquidity. Trading continues on the AMM with `x*y=k` mechanics.
</Steps>

## What Changes After Graduation

| Aspect          | Before (Bonding Curve)      | After (AMM)                         |
| --------------- | --------------------------- | ----------------------------------- |
| Price model     | Linear curve                | Constant product (x\*y=k)           |
| Liquidity       | Guaranteed by curve formula | Pool-based, deeper with more volume |
| Buy fee         | 0.5%                        | 1% swap fee                         |
| Sell fee        | 2.5% (to LP)                | 1% swap fee                         |
| Price direction | Always up with buys         | Market-driven (can go up or down)   |

## Manual Graduation

Graduation usually happens automatically during a buy. However, if a token has reached the threshold but hasn't graduated (edge case), anyone can trigger it manually:

```json theme={null}
{
  "graduate": {
    "token_address": "<cw20_token_address>"
  }
}
```

This is permissionless -- no funds required, anyone can call it.

## Post-Graduation Trading

After graduation, use the AMM to trade:

* **Buy tokens**: Swap XYZ for tokens on the [AMM](/amm/swapping)
* **Sell tokens**: Swap tokens for XYZ on the [AMM](/amm/swapping)
* **Check price**: Query the AMM [pool](/amm/overview) for current reserves and price

<Note>
  The AMM may charge an **augmented fee** (up to 5%) on top of the base 1% swap fee for newly graduated pools. This extra fee auto-disables once the pool reaches a target value, ensuring fair price discovery during the transition period.
</Note>

## Next Steps

<CardGroup cols={2}>
  <Card title="AMM Overview" icon="arrow-right-arrow-left" href="/amm/overview">
    Understand how the AMM works
  </Card>

  <Card title="AMM Swapping" icon="repeat" href="/amm/swapping">
    Trade tokens on the AMM
  </Card>
</CardGroup>