How it works

A coin on PerpFun has two lives. It starts as an ordinary token trading against dollars, and if its market carries it far enough, it becomes a token backed by a leveraged position on a real stock. Nothing about the first life is a waiting room: it is fully tradable from the first block.

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1. Launch

You pick a name, a ticker, an image and the stock you want to back it. One transaction later:

• the full supply — 1,000,000,000 tokens — is minted and deposited into a single Uniswap V3 pool against USDG;
• the position NFT is handed to a locker that cannot give it back;
• the coin is live, priced, and reachable by any router.

You put up no capital. The position is single-sided — all coin, no dollars — so there is nothing to pair it with. See Launching a coin.

2. Trade

Buyers push the price up the curve; sellers push it back down. Each swap pays 1%, split 70/30 between you and the protocol, and the dollars buyers pay in stay in the pool as the coin's backing.

That accumulated USDG is the number that matters. It is not a valuation or a projection — it is the money the coin's own trading has put behind it, and it is what it can actually pay out. See Buying & selling.

3. Bond

Once the pool has accumulated the launcher's threshold of USDG, anyone can call bondAndMigrate. In a single transaction the pool's entire contents move out of the USDG market and into a new one quoted in the coin's leveraged tracker, at the same dollar price.

Holders do nothing and lose nothing. Their tokens never move. What changes is what sits behind them. See The bond.

4. Backed

From then on the coin trades as YOURCOIN / NVDAx5, and the accumulated backing is no longer idle dollars — it is a 5× long or short on a real equity, maintained on a live perp venue. When Nvidia moves 1%, the backing moves 5%.

Your fees keep accruing exactly as before. See Leveraged trackers.

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The whole thing, in one table

Notice the last column. Every step is permissionless. Nobody decides whether a coin bonds — only who pays the gas that records it.