> For the complete documentation index, see [llms.txt](https://basedinc.gitbook.io/basedbid/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://basedinc.gitbook.io/basedbid/explainers/launch-explainers/how-does-a-pool-graduate-to-a-dex.md).

# How does a Pool Graduate to a DEX?

<mark style="color:$primary;">**Graduation**</mark> is when your token automatically moves from basedbid's <mark style="color:$primary;">**bonding curve**</mark> to major exchanges like Raydium or PancakeSwap once the <mark style="color:$primary;">**target market cap**</mark> is reached

<p align="center"><a href="/basedbid/projects-how-to-guides/how-to-create-a-pool-lbp.md" class="button primary" data-icon="coin-front">Click here to learn how to create a Pool</a></p>

<p align="center"><a href="https://based.bid/launch-pool" class="button primary" data-icon="coins">Click here to Create a Pool</a></p>

#### How It Works <a href="#how-it-works" id="how-it-works"></a>

<details>

<summary>1. Launch</summary>

Your token starts on our bonding curve where users buy and sell directly. You set a <mark style="color:$primary;">**custom market cap**</mark> target during creation

</details>

<details>

<summary>2. Trading Phase</summary>

As people buy your token, the price increases along the curve toward your target market cap, earning <mark style="color:$primary;">**trading fees**</mark> the entire time

</details>

<details>

<summary>3. Graduation</summary>

Once your token reaches the target market cap, it <mark style="color:$primary;">**automatically graduates to a DEX**</mark>**&#x20;***<mark style="color:purple;">**(**</mark><mark style="color:purple;">no manual steps required)</mark>*

</details>

<details>

<summary>4. Exchange Trading</summary>

Your token is now live on a major DEX with access to the broader crypto communit&#x79;**,** earning <mark style="color:$primary;">**fees on every swap**</mark>

</details>