> For the complete documentation index, see [llms.txt](https://docs.trench.express/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trench.express/trench-express/overview/bonding-curve-and-liquidity-deployment.md).

# Bonding Curve and Liquidity Deployment

At **Trench Express**, tokens incubated on our platform are bought and sold using a bonding curve — a unique approach that differs from traditional liquidity pools found on decentralized exchanges (DEXs). Think of it as a "virtual" Uniswap-style Automated Market Maker (AMM) embedded within a smart contract, offering a streamlined experience with no external liquidity needed.

### How the Bonding Curve Works

* **Constant-product pricing:** The curve is a constant-product (x·y=k) AMM. Each token is created with the full **1,000,000,000** supply on one side and a **virtual reserve of 2.5 ETH** on the other. The spot price is simply the ratio of the two reserves.
* **Dynamic pricing model:** As tokens are purchased on **Trench Express**, the price for the next buyer increases. Conversely, if someone sells, the price for subsequent buyers decreases. This creates predictable price action that mirrors trading in a DEX's liquidity pool — but without the need for an external pool.
* **Visual representation:** Users can easily visualize the bonding curve and live price on each token's dedicated page, providing transparency and insight into the current pricing dynamics.

### Transition to Initial Liquidity Deployment

The bonding curve remains active until a token's **fully-diluted valuation reaches 40 ETH**. Because of the fixed virtual reserve, this always happens at exactly **75% of the supply sold**, regardless of the ETH price — it takes roughly **7.5 ETH** of net buys to get there. Once this threshold is met:

* **The curve freezes.** No further buys or sells are accepted on the curve; the token is now "graduation pending."
* **Liquidity is deployed.** In a separate, permissionless graduation step, the ETH accumulated on the curve plus a matching amount of tokens are deployed into a **Uniswap v3** pool (1% fee tier, full-range — so it behaves like a classic constant-product market).
* **Liquidity is permanently locked.** The resulting liquidity position is escrowed in a no-egress locker. The principal can never be withdrawn; only the trading fees it earns can be collected.

{% hint style="info" %}
The **2.5 ETH virtual reserve** is what makes early pricing smooth — it is a mathematical anchor only. It is never real ETH, is never wrapped, and never enters the graduated pool. Only the real ETH that buyers put into the curve is deployed as liquidity.
{% endhint %}

By leveraging the bonding curve mechanism, **Trench Express** fosters an efficient and equitable trading environment, ensuring that every token launch is supported by a sustainable liquidity model that benefits both creators and buyers.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.trench.express/trench-express/overview/bonding-curve-and-liquidity-deployment.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.