Raydium Pool Creation Process

At CATapult, our mission is to provide a seamless and fair token launch experience. While initially we planned for a $X/$CAT pool, we've decided to use $X/$SOL as the default pairing at launch. This change ensures compatibility with the broader Solana ecosystem and reduces friction for new users. We’ll be adding $X/$CAT pairing post-launch, which will come with additional benefits for those who choose it. Here's a breakdown of the pool creation process and the reasoning behind the changes.

1. What is the Raydium Pool?

The Raydium Pool is a liquidity pool created on Raydium for each token launched through CATapult. This pool is automatically generated after the Fixed Price phase ends, either when the hard cap is hit or when the time limit expires. We have chosen $X/$SOL as the pairing for the initial launch for the following reasons:

• Simplicity and Compatibility: $X/$SOL is a standard pairing on Solana-based DEXs, making it easy for users to understand and participate without extra learning curves.

• Wider User Adoption: Most Solana tokens are paired with $SOL, and using this pairing ensures smooth integration with the Solana ecosystem, where liquidity is already well-established.

Raydium LP fees will be auto-compounded. However, since the LP is burned, no one will receive those fees.

2. How Does the Raydium Pool Work?

Once the Fixed Price period concludes, the token is automatically bonded on Raydium, creating a pool for that token with $X/$SOL. This pool helps facilitate efficient trading by providing liquidity for both the newly launched token and $SOL.

• Liquidity Supply: The amount raised during the Fixed Price period, in $SOL, is used to create the pool, and tokens bought during this period are streamed into the liquidity pool.

• $X/$SOL Pairing: The pool will initially pair $X (the newly launched token) with $SOL, ensuring enough liquidity for trading and smooth token launches.

3. Why is the Raydium Pool Important?

The Raydium Pool is crucial for liquidity, price discovery, and market integrity. By pairing $X with $SOL in the pool at launch, we ensure that there’s sufficient liquidity for buyers and sellers. This provides a fair marketplace for everyone involved and supports the price discovery process.

• Liquidity Provision: The pool ensures that there is enough liquidity for smooth trading.

• Price Discovery: After the Fixed Price phase, the pool helps facilitate an efficient price discovery process by providing continuous liquidity.

• Market Integrity: By ensuring liquidity and no manipulation, the pool guarantees fairness in the trading process.

4. Conclusion

The Raydium Pool Creation is a key feature of the CATapult token launch process, ensuring liquidity. While we are starting with $X/$SOL pairing to minimize friction for users, the upcoming $X/$CAT pairing will offer even more value and benefits. This system supports a decentralized, transparent, and fair trading environment for creators, traders, and contributors alike, making CATapult the go-to platform for Solana token launches.