Graduation & Liquidity Provisioning

When all 800,000 lots are sold, the token graduates into permanent, protocol-owned DEX liquidity. It happens atomically inside the final buy — no separate transaction, no keeper, no operator.

Trigger

Graduation runs inside the buy() that pushes current_supply_lots to 800,000. The buyer's transaction carries the cost. The FLAG_GRADUATED bit is set before the external calls, so the curve is already closed to trading when the hook is invoked.

What happens

Fee split

Accumulated curve fees split 90% deployer, 10% protocol. For the protocol curve there is no deployer cut — the whole balance goes to the hook.

Deployer payout — best effort

Sent by raw_call with revert_on_failure=False. If the deployer's wallet cannot receive — a broken contract, a multisig that reverts on plain transfers — the fee is forfeited to the protocol rather than bricking graduation for everyone else.

Liquidity mint

400,000,000 × 10⁹ (400M) are minted directly to the hook. Together with the pre-mint and curve supply this reaches the 1,200,000,000 × 10⁹ (1.2B) hard cap exactly.

Unlock transfers

enableTrading() moves the token from STATE_LOCKED to STATE_TRADING. Until this point only the minter could move tokens.

Pool creation

createPositionAndRegister() initializes the pool at INITIAL_SQRT_PRICE and mints a full-range position owned by the hook. The caller is verified against Factory.is_curve() — only a factory-born curve can graduate a token.

Secondary reservation (V4 family)

10% of the envelope — native and 40,000,000 × 10⁹ (40M) — is pushed to the SecondaryHook in the same transaction and earmarked to this token. See Dual Pools.

The graduation envelope

On V4-family chains the envelope splits 90/10 between the two pools. The protocol token takes the full envelope with no split — it cannot be paired against itself.

Amount	Base	BSC	Polygon	Robinhood	Gnosis
Total native (`GRADUATION_NATIVE`)	4 ETH	12 BNB	96,000 POL	4 ETH	9,600 xDAI
→ primary pool	3.6 ETH	10.8 BNB	86,400 POL	3.6 ETH	9,600 xDAI (no split)
→ secondary pool	0.4 ETH	1.2 BNB	9,600 POL	0.4 ETH	—
Total tokens	400,000,000 × 10⁹ (400M)
→ primary pool	360,000,000 × 10⁹ (360M)
→ secondary pool	40,000,000 × 10⁹ (40M) (V4 family only)

PRIMARY_GRADUATION_LIQUIDITY is exactly 0.9 × GRADUATION_LIQUIDITY — amounts scale linearly, and at INITIAL_SQRT_PRICE both sides of the position bind simultaneously, so the settle step pulls exactly the intended amounts.

Pool parameters

Parameter	V4 family	Gnosis (V3)
Pool fee	0 — all fees taken by the hook	10000 (1% tier)
Tick spacing	200	200 (implied by the 1% tier)
Tick range	Full range (−887200 … 887200)	Full range
Position owner	PrimaryHook	GraduationManager
Removable	No — there is no function that decreases liquidity

Permanent liquidity

The LP position is owned by the hook or manager contract, and no code path removes or reduces it. The position can only grow, through fee reinvestment. This is a core guarantee of the protocol and is verifiable by reading the source: there is no decreaseLiquidity, no burn, no withdrawal.

Front-running the pool initialization

An attacker who initializes the pool first at a distorted price would corrupt the graduation mint. Both venue families close this:

V4 family — beforeInitialize reverts unless a transient _initializing flag is set, and only createPositionAndRegister sets it. The flag is cleared immediately after the multicall, not left to expire at end of transaction, so no later call in the same transaction can slip through it.
Gnosis — the pool is initialized atomically inside deploy_pair via preInitializePool(). A frontrunner who got there first causes the whole deployment to revert; the deployer retries with a fresh salt. At graduation the manager re-reads slot0 and asserts the price still matches, as defense in depth.

Excess native

Anything sent beyond GRADUATION_NATIVE is credited to protocolBalance. This is normally the protocol's 10% cut of curve fees, arriving in the same call. The secondary pool's earmarked share is not excess — it is accounted separately and pushed on.