> For the complete documentation index, see [llms.txt](https://documentation.kodiak.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://documentation.kodiak.finance/protocol/panda-factory.md).

# Panda Factory

<div align="left"><figure><img src="/files/JegPJDgYFYBpon7PJmVE" alt=""><figcaption></figcaption></figure></div>

## What is Panda Factory?

Panda Factory is a protocol for token launches 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 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 (ETH, stablecoin)
* Optional: deployer same-block buy (up to 50% 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 Uniswap-style DEX. The remaining token supply is paired with the funds raised on Uniswap, and LP tokens are burned.

{% hint style="info" %}
Uniswap style dex can be any compatible Uniswap V2 fork. On Berachain, that is Kodiak Dex. On Robinhood Chain, the DEX is deployed by Uniswap.
{% endhint %}

#### **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 Uniswap 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 Uniswap-style V2 DEX pair
* Trading continues on Uniswap-style DEX, listed on Dexscreener, etc.
* Users can swap using either Panda Factory UI or DEX or Terminal UI!

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

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