Short a coin before it graduates.
Perpetuals on Pons bonding curves. ETH-margined, up to 3x, priced by the curve itself.
Live Pons curve, read on RH Chain. The perp side is not deployed yet.
How the price is set
- 1
The curve is the oracle
Mark price is the ratio of the curve’s own reserves, read on-chain in the same block you trade in, smoothed over a 30-second TWAP. There is no price feed to bribe, no reporter to wait on, and no cross-chain hop between the thing you are trading and the number you are trading against.
- 2
Manipulation costs more than it pays
Open interest in a market is capped at a quarter of the ETH sitting in its curve. Moving spot far enough to profit on a perp means buying or dumping against a curve that is four times the size of the position you are trying to print — the trade pays for itself before it pays you.
- 3
Graduation is not settlement
When a token graduates, the oracle switches its source from the bonding curve to the new pool and keeps going. Your margin, your entry, and your funding history carry across untouched. Leverage lifts from 3x to 5x. Nothing closes.
The vault takes the other side
Every position on PONSLIQUID is filled by depositors, not by another trader — which is why there is depth in a market that opened four minutes ago. Directional exposure the book leaves behind is hedged on Hyperliquid, so what depositors are paid for is fees and funding rather than a bet on which coin runs.
Risk
Liquidation
Margin is isolated, so a liquidation costs you that position and nothing else in your wallet. Maintenance is 6.25% of notional: at 3x that means the mark moving about 27% against your entry — a third of your notional is your margin, and 6.25 points of it are reserved for the keeper closing you out. Fees and accrued funding come out of the same margin, so a position held through a long funding regime liquidates a little earlier than the arithmetic alone suggests. There is no partial liquidation and no insurance-fund socialisation; the position closes at the mark and whatever is left is returned.
When a token dies
Most curves do not graduate. A market is declared dead when its curve has seen no activity for 72 hours and the price sits below 20% of its high. That opens a 24-hour close-only window — existing positions can be reduced or closed, nothing new can be opened — and at the end of it the market force-settles every remaining position at the 24-hour TWAP. Settlement is never at zero. A short that was right gets paid the real distance it earned, and a long that was wrong keeps whatever margin the TWAP leaves.
What the vault is holding
The vault hedges its systematic exposure on Hyperliquid, which handles the case where every market moves together. It does not hedge the case where one specific coin gaps against the book, because there is nothing to hedge it with — that risk stays with depositors. In a bad week the share price of spETH goes down. Utilisation is capped at 60% so that the vault can always meet withdrawals and never has its entire balance sheet standing behind open interest.
- Collateral
- Native ETH
- Margin mode
- Isolated
- Max leverage
- 3x pre-graduation, 5x post
- Maintenance margin
- 6.25% of notional
- Open / close fee
- 0.10% each side
- Funding
- Hourly, clamped ±0.05%
- Borrow rate
- Paid to the vault by both sides
- OI cap per market
- 25% of curve ETH reserves
- Vault utilisation cap
- 60%
- Fee split
- 60% vault / 30% treasury / 10% keepers
- Oracle
- Curve reserves, 30s TWAP, same block
- Chain
- RH Chain (4663)
Every number above is enforced in the contracts, not by the interface. The 30s TWAP and the 25% cap are the two that keep the oracle honest.