How BackBid works

Every token launched on BackBid gets its own on-chain OTC Liquidity Vault, funded by 50% of BackBid's platform fee. After graduation it posts a bid 10% below the lower of the pool's TWAP and spot, and an ask 3% above the higher, within on-chain limits. It never sells into the pool, and it is not a price guarantee. Plus fixed-price OTC offers for any Solana token.

The short version

How fees fund a token's vaultTraders pay a 1.5% fee on the bonding curve, and the locked Raydium pool earns fees after graduation. The fees are split on-chain: 50% of every SOL fee goes to the token's own vault and 50% to the BackBid treasury; token-side pool fees go to the vault. After graduation the vault buys tokens from holders at the bid, below the price, and sells them to buyers at the ask, above the price. What buyers pay goes back into the vault.Tradescurve, then poolFees1.5% on the curveTreasuryBackBidtrading fees50% of SOL fees50% of SOL fees+ token-side pool feesOTC Liquidity Vaultholds SOL and tokenstrades after graduationHolderssell at a discountBuyersbuy at a premiumtokensSOL at the bidSOL at the asktokensThe spread stays in the vaultHow fees fund a token's vaultTraders pay a 1.5% fee on the bonding curve, and the locked Raydium pool earns fees after graduation. The fees are split on-chain: 50% of every SOL fee goes to the token's own vault and 50% to the BackBid treasury; token-side pool fees go to the vault. After graduation the vault buys tokens from holders at the bid, below the price, and sells them to buyers at the ask, above the price. What buyers pay goes back into the vault.Tradescurve, then pooltrading feesFees1.5% on the curveTreasury50% of SOL fees50% ofSOL fees+ token-sidepool feesOTC Liquidity Vaultholds SOL and tokenstrades after graduationtokensSOL at bidSOL at asktokensHolderssell at a discountBuyersbuy at a premiumThe spread stays in the vault
  1. Launch. One transaction creates the token on a Raydium bonding curve, with its own vault.
  2. Fees fill the vault. 50% of every SOL fee the token earns goes to its vault, on-chain.
  3. The vault trades at posted prices. After graduation it buys from holders below the price and sells to buyers above it.

Launching a token

You launch on a Raydium bonding curve through BackBid. You sign one transaction in your wallet, and it does everything:

  • A fresh mint. The token gets a new mint address. Our server generates the mint key, signs its part of the transaction and throws the key away.
  • Metadata. The name, symbol, description, links and image you enter are stored by our API and published as standard token metadata. They are linked on-chain, so treat them as permanent.
  • The vault. The token's vault and its fee routing are created in the same transaction, so fees reach the vault from the first trade.
  • An optional first buy. You can buy some of your own token in the same transaction, at the curve price plus the 1.5% trading fee.

Launching costs rent for the token's accounts (≈0.0389 SOL) plus Solana network fees. There's no separate launch fee. The creator fee is 0%: creators earn nothing from trades, so the fees go to the vault and the treasury instead.

Launch a token

The bonding curve and graduation

A new token trades on Raydium's bonding curve. Buying moves the price up, selling moves it down, and you can always sell back to the curve. Nobody adds liquidity by hand.

When 85 SOL has been raised on the curve, the token graduates: Raydium moves it into a Raydium CPMM pool. All of that pool's liquidity is locked forever in Raydium's LP lock. Nobody can pull it, including BackBid and the creator. The key that collects the locked liquidity's fees is held by a program address for that token (its launch_auth), so those fees go through the same on-chain split as the curve fees.

Where trading fees go

On the curve

Traders pay 1.5% per trade: 1.25% BackBid platform fee plus 0.25% Raydium protocol fee. Creator fee: 0%.

After graduation

Trades pay the Raydium pool's fee. The fees earned by the locked liquidity, and the pool's creator fees, are collected for the token and split the same way.

The split

50% of every SOL fee goes to the token's own vault, 50% to the BackBid treasury. The split is written into the token's launch record and can never change for that token.

Token-side fees

Pool fees paid in the token itself go 100% to the vault, as inventory it can sell.

Collecting

Anyone can trigger a fee harvest; our server does it regularly. Each harvest splits what arrived on-chain and records the totals for that token.

All fees

The OTC Liquidity Vault

Each launched token has one vault. It holds SOL from fees and the tokens it buys. No instruction can withdraw from it: SOL leaves only as payment to a holder who sells to it, and tokens leave only to a buyer who pays for them.

On the curve: accumulating

The vault collects fees but doesn't trade. Holders can always sell to the curve itself, and the curve has no price that's hard to manipulate. Vault trading opens at graduation.

After graduation: open

Holders can sell tokens to the vault at the bid, and anyone can buy the vault's tokens at the ask. Neither trade charges a platform fee: the spread between bid and ask is the vault's revenue, and it stays in the vault.

How the prices are set

The reference price is the time-weighted average price (TWAP) of the token's Raydium pool over 20 minutes, read on-chain on every vault trade. The spot price is the pool's current price.

Bid (vault buys)
lower of TWAP and spot × (1 − 10%)
Ask (vault sells)
higher of TWAP and spot × (1 + 3%)
Price guard
no vault trades while spot is more than 15% away from the TWAP

Using the lower price for the bid and the higher for the ask means moving the pool price right before a vault trade can only make that trade worse for the person who moved it. Why the TWAP resists manipulation

Limits (defaults for new launches)

Bid discount

10% below the lower of the TWAP and the spot price. This is what a holder gets per token.

Ask premium

3% above the higher of the TWAP and the spot price. This is what a buyer pays per token.

Max per sale

2% of the vault's SOL. One sale to the vault can't pay out more than this.

Daily budget

10% of the vault's SOL at the start of each 24-hour window. Once it's spent, the vault stops buying until the next window.

SOL reserve

0.1 SOL minimum balance. The vault never pays out below it, so a new vault buys nothing until it holds more.

Inventory cap

50% of the vault's total value (SOL plus tokens valued at the TWAP). The vault stops buying when its tokens reach this share.

TWAP window

20 minutes of pool history. The reference price is the Raydium pool's time-weighted average price over this window.

Price guard

15% maximum gap between the spot price and the TWAP. Vault trades are refused while the gap is larger.

The admin can pause a vault or tune these numbers within bounds hard-coded in the program. The admin can't take funds out of a vault.

The vault may not be able to buy: its budget, limits, reserve or inventory cap can stop it, and so can the price guard, a pause, or a token that hasn't graduated. Prices are formula-based, not a promise. Liquidity is not guaranteed. The program is not audited. Risks

OTC marketplace for any token

Besides launches, BackBid has fixed-price OTC trading for any Solana token that passes the program's token checks, launched here or not. Payment is in SOL or USDC.

  • Offers. A seller locks tokens in the escrow program at one price per token. Buyers take part or all of it, and tokens and payment swap in one transaction.
  • Buy requests. Post the price you want. A funded request locks your payment in escrow so any holder can sell to you at once; cancel anytime to get it back.
  • Fees. Buyers pay 1% on top of the price and sellers pay 1% from what they receive.

Open the OTC marketplace How the escrow works