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Understanding Settlement

Settlement is the process that transitions a completed auction into a live, tradeable token. It happens after the auction graduates and involves several on-chain steps.

What Triggers Graduation​

An auction graduates when the total currency raised meets or exceeds the configured graduation threshold. This means enough demand existed at sufficient price levels to justify launching the token into a liquid market.

If an auction ends without reaching the graduation threshold, it does not settle in the normal way -- instead, a recovery or cancellation path is available.

Settlement Steps​

Settlement happens in four sequential steps. Each step is a separate on-chain transaction.

1. Finalize​

The first step locks the final clearing price and computes the definitive token allocations. After finalization, no more bids can be placed or withdrawn, and the auction's outcome is fixed.

2. Sweep​

Proceeds are swept from bid escrows into the auction's currency vault. This consolidates all the quote currency paid by winning bidders into a single account for pool creation.

3. Pool Creation​

A Raydium CPMM liquidity pool is created using:

  • The LP allocation of tokens (from the token escrow)
  • A portion of the raised currency (from the sweep)

This creates the initial trading market for the token. LP tokens are burned, making the liquidity permanent and non-removable.

4. Settle (Enable Claims)​

The final step enables bidders to exit their bids and claim tokens. After this step, the auction status transitions to Settled and bidders can use the claim flow.

Permissionless Settlement​

All settlement steps are permissionless -- any wallet can submit these transactions. You do not need to be the creator, a bidder, or any privileged party. This means:

  • Settlement cannot be blocked or censored by the creator
  • Community members or keepers can trigger settlement on behalf of everyone
  • There is no single point of failure in the settlement process
note

In practice, settlement is typically triggered by the creator or an automated keeper shortly after graduation. But if no one triggers it, any user can step in.

After Settlement​

Once fully settled:

  • The token is live and tradeable on Raydium
  • Bidders can claim their tokens and refunds
  • The mint authority has been renounced -- no additional tokens can ever be created
  • LP liquidity is permanently locked