DLMM Bonding Curve

Token allocation schedules on DLMM price lattices

Model

• Bin price lattice: P_i = P_0(1 + bin_step/10,000)^i (DLMM formulas)
• Geometric schedule: ΔX_i = ΔX_0 r^i with r = q^(θ-1); closed form S_n = ΔX_0(1-r^n)/(1-r)
• Logistic target: P(S) = P_min + (P_max - P_min)/(1 + e^(-k(S - S_mid))) discretized via ΔX_i = S(P_{i+1}) - S(P_i)
• Fees: f = f_b + f_v, f_b = B·s, f_v = A·(v_a·s)^2 in decimal space; cap at f_max
• Guards (per docs):
  • X→Y: p_min = p_spot · 10,000/(10,000 - impact_bps)
  • Y→X: p_min = p_spot · (10,000 - impact_bps)/10,000

Arch

graph TB
    subgraph "Price Lattice"
        P0[P₀: Initial Price]
        P1[P₁ = P₀·q]
        P2[P₂ = P₀·q²]
        Pn[Pₙ = P₀·qⁿ]
        P0 --> P1 --> P2 --> Pn
    end

    subgraph "Allocation Mechanisms"
        GEO["Geometric: ΔX_i = ΔX₀·r^i"]
        LOG["Logistic: P⟨S⟩ sigmoid"]
        GEO --> DELTA[ΔX per bin]
        LOG --> DELTA
    end

    subgraph "Fee Model"
        BASE["Base Fee: f_b = B·s"]
        VAR["Variable Fee: f_v = A·⟨v_a·s⟩²"]
        BASE --> TOTAL[Total Fee]
        VAR --> TOTAL
        TOTAL --> CAP[Cap at f_max]
    end

    subgraph "Verification"
        NUM["Numerical Sum: Σ ΔX_i"]
        CLOSED[Closed Form: S_n]
        NUM --> COMPARE[Compare & Validate]
        CLOSED --> COMPARE
        COMPARE --> REPORT[Verification Report]
    end

    DELTA --> NUM
    P0 --> GEO
    P0 --> LOG

    style P0 fill:#f9f,stroke:#333,stroke-width:2px
    style DELTA fill:#9f9,stroke:#333,stroke-width:2px
    style REPORT fill:#99f,stroke:#333,stroke-width:2px

Flow

1. Price Lattice: Exponential grid P_i = P₀·q^i where q = 1 + bin_step/10,000
2. Allocation: Choose geometric (ΔX_i = ΔX₀·r^i) or logistic (sigmoid discretization)
3. Fees: Decimal-space simulation with base + variable components
4. Verification: Compare numerical summation against closed-form solution

Install

curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh
source $HOME/.cargo/env
cargo build --release

Usage

Workflow

graph LR
    INPUT[Input Parameters] --> MODE{Mode?}
    MODE -->|Geometric| GEO_PARAMS[θ, target_supply/R₀]
    MODE -->|Logistic| LOG_PARAMS[p_min, p_max, k]
    
    GEO_PARAMS --> COMPUTE[Compute Schedule]
    LOG_PARAMS --> COMPUTE
    
    COMPUTE --> VERIFY[Verify Invariants]
    VERIFY --> OUTPUT[Generate Output]
    
    OUTPUT --> CSV[schedule.csv]
    OUTPUT --> PNG1[price_vs_supply.png]
    OUTPUT --> PNG2[tokens_per_bin.png]
    OUTPUT --> PNG3[fee_vs_volatility.png]
    
    style INPUT fill:#f9f,stroke:#333,stroke-width:2px
    style OUTPUT fill:#9f9,stroke:#333,stroke-width:2px

Examples

Geometric curve with target supply:

./target/release/bcurve \
  --mode geometric \
  --p0 0.01 --bin-step-bps 10 \
  --theta 0.6 \
  --target-supply 100000000 \
  --end-price 0.0175

Logistic S-curve:

./target/release/bcurve \
  --mode logistic \
  --p0 0.0015 --bin-step-bps 10 \
  --p-min 0.001 --p-max 0.05 \
  --k 0.00000008 \
  --end-price 0.03

With launch phase policy and price guards:

# Create allowlist file
echo -e "team_member_1\nwhale_address_2\nprivileged_trader_3" > allowlist.txt

./target/release/bcurve \
  --mode geometric \
  --p0 0.01 --bin-step-bps 10 \
  --theta 0.6 \
  --target-supply 100000000 \
  --allowlist-path allowlist.txt \
  --tau-start-pct 75.0 \
  --tau-end-pct 5.0 \
  --tau-ramp-secs 120.0 \
  --price-guard-bps 50.0 \
  --verbose

Output

All output files are written to the directory specified by --out-dir (defaults to out/):

• schedule.csv: Bin-by-bin allocation table with:

  bin,price,delta_x,supply_cum,revenue_bin,revenue_cum,fee_base,fee_var,fee_total
  

• price_vs_supply.png: Price vs cumulative supply
• tokens_per_bin.png: ΔX_i distribution
• fee_vs_volatility.png: Fee response function

CSV metadata includes launch policy configuration:

# Launch policy: allowlist=3 addresses
# Surcharge ramp: 50.0% → 3.0% over 30s

Example:

# Create output directory and run with default output path
mkdir -p out/
./target/release/bcurve --mode geometric --p0 0.01 --bin-step-bps 10 --theta 0.6 --target-supply 100000000

# Or specify a custom output directory
./target/release/bcurve --mode geometric --p0 0.01 --bin-step-bps 10 --theta 0.6 --target-supply 100000000 --out-dir my_output/

Parameters

Core

• --mode: geometric or logistic
• --p0: Initial price (quote per base)
• --bin-step-bps: Bin step in basis points
• --theta: Geometric parameter (prefer 0<θ<1)

Supply

• --target-supply: Target cumulative supply S*
• --bins: Number of bins
• --end-price: Terminal price (computes bins)
• --r0: Initial revenue R₀

Logistic

• --p-min, --p-max: Price bounds
• --k: Steepness parameter
• --s-mid: Inflection point (auto-calibrated if 0)

Fees

• --base-factor: Base fee factor B
• --variable-fee-control: Variable fee control A
• --vol-accum: Volatility accumulator
• --max-fee-rate: Maximum fee cap (decimal in [0,1], e.g., 0.05 = 5%)

Launch Phase Policy

• --allowlist-path: Path to newline-separated allowlist file (addresses exempt from surcharge)
• --tau-start-pct: Initial surcharge percentage (default: 50.0%)
• --tau-end-pct: Final surcharge percentage (default: 3.0%)
• --tau-ramp-secs: Surcharge decay duration in seconds (default: 30.0s)

Optional Features

• --price-guard-bps: Include price impact guard metadata (e.g., 50.0 for 0.5%)

Library Usage

This crate can be used as a library for custom integrations:

use bcurve::dlmm::LaunchPhasePolicy;
use std::collections::HashSet;

// Create launch phase policy with allowlist
let mut allowlist = HashSet::new();
allowlist.insert("privileged_trader_123".to_string());

let policy = LaunchPhasePolicy {
    allowlist,
    tau_start_pct: 50.0,  // 50% initial surcharge
    tau_end_pct: 3.0,     // 3% final surcharge
    ramp_secs: 60.0,      // 60 second ramp period
};

// Check if address is exempt from surcharge
if policy.is_allowed("privileged_trader_123") {
    // Address can trade without surcharge
} else {
    // Apply time-decaying surcharge: τ(t) 
    let surcharge_pct = policy.tau(seconds_since_launch);
}

Testing

cargo test

Test suite includes:

• Property tests: Closed-form equality, monotonicity, non-negative allocations
• CSV validation: Header format, compensated summation accuracy
• Launch policy: Allowlist functionality, surcharge calculations

Integration

For Meteora DBC deployment:

• Supports up to 16 curve segments
• Convert to Q64.64 fixed-point for on-chain
• Use FEE_PRECISION scaling for integer fee mode

References

• DLMM Formulas - Meteora Documentation
• Trading Fees Calculation - Meteora Documentation
• Bonding Curve Formulas - Meteora Documentation