# introduction

**basefun** is a memecoin launchpad on the Base L2. What makes it different from every other launchpad is that **each coin launched on basefun is paired one-to-one with a real Avantis perpetual position.**

That means a token's price moves from **two** sources at the same time:

1. **Bonding curve activity** — buys push the price up, sells pull it down, just like alt.fun or pump.fun.
2. **The underlying perp's PnL** — the leveraged position on BTC, ETH, SOL, etc. swings the token's net asset value even when nobody is trading on the curve.

## The lifecycle

```
   Create  →  Trade on curve  →  Curve graduates  →  Trade on Uni V2 forever
   $1 fee     1% swap fee         $10k reserve        1% on every swap (FOT)
```

1. **Creator launches**: pays $1 USDC + a mandatory ≥ $20 initial buy.
2. **Anyone trades**: 1% per swap, split 0.5% protocol / 0.5% creator. Both transferred inline in the same transaction.
3. **Curve graduates at $10k USDC reserve**: $9.7k + 242.5M tokens seed a permanent Uniswap V2 LP (burned at `0xdead`), $300 goes to the treasury. Resulting Uni V2 market cap lands at exactly **$40k**.
4. **Post-graduation**: all swaps go through Uni V2. The token contract itself enforces 1% fee on every pair-touching transfer — the keeper sweeps that to USDC and dispatches 50/50 to treasury/creator.

## Two important caveats

basefun is honest about the trade-offs vs. a non-perp launchpad:

* **Liquidation risk**. Because the underlying is a real Avantis perp, it can be liquidated at 80% health. If that happens, the bonding curve's reserve collapses with it. The UI shows this clearly before each buy.
* **Execution fees**. Each trade costs roughly $0.0001 ETH for the Avantis open/close, plus Avantis fees and the 1% swap. Small dust trades are economically inefficient.

If you've read this far you should now jump to [Why perp-backed coins](broken://pages/8c3424b44419b0f04347f1c6f0cf01cd0b90699c) for the motivation, or [Launching a token](broken://pages/063fb3c0bc7b6aff20ab183327f11c7817d179c8) if you want to ship.


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