# Panda Factory

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## What is Panda Factory?

Panda Factory is a protocol for token launches on Berachain that uses bonding curves. It enables tokens to be launched and traded without requiring initial liquidity, using a mathematical price curve until graduation to DEX trading.

{% hint style="info" %}
The protocol uses a bonding curve (similar to Kodiak DEX) that determines token prices based on supply. As tokens are bought, the price increases along the curve; as tokens are sold, the price decreases.
{% endhint %}

### Core Components

#### Panda Token Launch

Launch tokens with:

* 1B total supply
* Zero initial liquidity requirement
* Configurable price range (set starting and ending market cap)
* Configurable base token (BERA, HONEY to start)
* Optional: deployer same-block buy (up to 10% of supply)

\~80-90% of the token supply will be supplied in the Panda Pool bonding curve.  When all of those are bought, the token will graduate to the Kodiak DEX. The remaining token supply is paired with the funds raised on Kodiak DEX, and LP tokens are burned.

#### **Incentives and Fees**

Before Graduation:&#x20;

* Buy fee: 0 (there is no fee to buy tokens while on the Panda Pool bonding curve)
* Sell fee: 2%

Graduation:&#x20;

* Deployer + Protocol fees as share of funds raised

After Graduation:

* 0.3% swap fees: standard fee on Kodiak V2 DEX

#### Trading

Trade directly with the protocol:

* Buy tokens (price increases with purchases)
* Sell tokens (price decreases with sales)
* Price determined by current curve position

#### Graduation

Automatic transition to DEX when:

* All the tokens in the Panda Pool have been bought (< 0.25% tokens remaining)
* Liquidity moves to Kodiak V2 DEX pair
* Trading continues on Kodiak DEX
* Tokens are automatically whitelisted in Kodiak DEX UI! &#x20;
* Users can swap using either Panda Factory UI or Kodiak DEX UI!

{% hint style="warning" %}
Important Protocol Characteristics:

* All prices follow the bonding curve formula
* Trading incurs fees
* Graduation is automatic and irreversible
  {% endhint %}


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