What happens when a memecoin creates its automated market maker pool on Raydium

02 September 2026

The moment a Pump.fun token “graduates” is the moment it becomes a real tradable asset on a decentralized exchange. Before that, it exists inside a bonding curve. That curve is a closed system. Buyers and sellers trade against a deterministic formula, and the price rises as supply moves along the curve.

When the curve reaches its final step - a market cap of roughly $65,000 in SOL - the contract stops accepting trades. The graduation sequence fires. Two things happen automatically: the SOL collateral accumulated inside the curve is withdrawn, and that SOL is paired with the remaining token supply. The pair is then deposited into a Raydium Constant Product Market Maker pool. This is not a manual process. No one clicks a button on a website. It is a permissionless smart contract interaction. The code executes, and a new liquidity pool appears on Raydium.

Why CPMM? Raydium offers two AMM models: CPMM and CLMM. Concentrated liquidity (CLMM) lets LPs choose a price range. That is useful for stable pairs or established tokens with predictable volume. For memecoins, CPMM is the default. The reason is simple. Memecoins have no price history. Their volatility is extreme. A CLMM pool would require LPs to guess a range that might be entirely wrong within minutes. A meme token that pumps 10x in an hour could leave CLMM liquidity entirely out of range, causing the pool to stop trading. CPMM distributes liquidity across the full price curve from zero to infinity. It never goes dry. For a token that might trade at any price, that is the safer, more reliable design.

The Raydium pool that forms is a standard CPMM pool. It uses the constant product formula x * y = k. The initial liquidity is the exact amount of SOL from the bonding curve, paired with the remaining tokens. That means the initial price in the CPMM pool matches the final price on the bonding curve. No arbitrage gap exists at the moment of creation. Trading continues without interruption from the same price.

Contrast this with Meteora’s dynamic pools. Meteora uses DLMM - Dynamic Liquidity Market Maker. That model lets liquidity be concentrated in active price bins, and the bins shift automatically based on trading activity. In theory, DLMM is more capital efficient. But it also requires active management. The pool’s parameters can change as volume moves. For a memecoin launching with zero track record, that complexity is a liability. Raydium’s CPMM is dumb, simple, and predictable. It works for every token, every time, without adjustment.

There is another important detail. The pool creation on Raydium is permissionless. Anyone can create a pool for any token pair, as long as they provide the liquidity. In the Pump.fun graduation case, the deployer is not a person. It is the Pump.fun contract itself. The contract owns both the SOL and the tokens at the moment of graduation. It calls Raydium’s createPool function, deposits the liquidity, and receives LP tokens. Those LP tokens are then burned or sent to a dead address. That means the initial liquidity is locked forever. No one can withdraw it.

That lock is a feature. It prevents the deployer from rugging the pool by pulling liquidity immediately after launch. The collateral that was raised during the bonding curve phase stays in the pool permanently.

As of August 31, 2026, no on-chain pair matching “aidancingcat” has been found. That means this specific token may not exist, or may not have graduated yet. The mechanics described here apply to any Pump.fun token that does complete the curve.

The graduation process is the moment a memecoin leaves its sandbox. It enters the open market. The price is no longer governed by a single curve but by anyone who trades against the Raydium pool. The same permissionless system that launched it now lets anyone buy or sell at whatever the market decides.

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