The mechanics behind
adaptive liquidity.
Avalanche is an automated market making engine for Solana tokens launched on Pump.fun. It manufactures continuous two-sided liquidity, absorbs volatility, and compounds trading fees back into deeper order books — the foundational conditions a token needs to grow from a launch curve into a real, tradable market.
What Avalanche is
Avalanche is a non-custodial market making layer designed specifically for tokens that graduate from the Pump.fun bonding curve. Once a token reaches an open market, its price behavior is governed almost entirely by the depth and quality of its order book. Thin books produce violent candles, discourage larger buyers, and cap the market cap a token can realistically hold.
The engine solves that by running a dedicated bot wallet for every token it services. Each bot continuously posts, cancels, and re-quotes bids and asks around the mid price, following a strategy the token team selects. The result is a market that behaves less like a memecoin casino and more like an actively traded asset.
The engine loop
Every bot runs the same core loop, tuned by the parameters of the selected strategy:
- Observe — sample recent trades, mid price, realized volatility, and inventory position.
- Quote — post layered bids and asks at spreads derived from volatility and target depth.
- Absorb — fill incoming market orders on both sides, capturing spread and fees.
- Rebalance — trim inventory toward neutral so the bot never becomes a directional bag holder.
- Compound — collected fees are routed back into working capital according to the fee slider.
- Quote refresh
- every 400–1200 ms
- Inventory check
- every 10 s
- Drawdown circuit
- hard stop at strategy limit
- Fee sweep
- rolling, per fill
- Runtime
- 24 / 7 while funded
Three profiles, one engine
Each token is assigned exactly one strategy and one dedicated bot wallet. Strategies differ in aggression, drawdown tolerance, and how inventory is unwound.
Tight spreads, minimal directional exposure. Sells inventory in 15% tranches with a 5% max drawdown circuit. Ideal for tokens optimizing for chart cleanliness and low volatility.
Adapts spread and skew to short-term flow. Sells in 50% tranches with a 10% drawdown ceiling. Built for tokens with momentum that want participation without capping the move.
Standard two-sided quoting during bonding, then migrates and seeds Meteora liquidity after graduation. The most aggressive profile — deepest books, widest coverage.
The daily fee slider
Tokens launched on Pump.fun accrue creator fees on every trade. Avalanche integrates directly with those creator rewards through a per-token fee redirect. During onboarding the team chooses a percentage — from 1% to 100% — of daily fee flow to route into the bot wallet.
Redirected fees are used exclusively for two things: replenishing working capital as inventory rotates, and progressively widening the depth of the book. Any fee percentage the team keeps for themselves is untouched by the engine.
Because the fee flow scales with volume, and volume scales with depth, a properly configured slider creates a compounding loop: more depth pulls more volume, which generates more fees, which funds more depth.
- Daily volume
- $500,000
- Creator fee
- 1.00%
- Gross fees / day
- $5,000
- Redirect slider
- 70%
- Into engine
- $3,500
- Kept by team
- $1,500
Why depth drives valuation
Market cap is a function of the last print, but the ceiling on that print is set by how much size the book can absorb without slipping. A token quoted with $2,000 of two-sided depth will reject a $20,000 buy with a violent wick and a matching sell-off. The same token quoted with $200,000 of depth absorbs the same order cleanly, holds the mark, and invites the next buyer.
on comparable order sizes vs. an unmanaged book
measured over 1h realized
depending on selected strategy
The mechanical effect on price discovery:
- Larger buyers can enter without moving the market against themselves, unlocking a class of participants that never engages with thin books.
- Sellers exit gracefully instead of dumping into an air pocket, so ordinary profit taking stops looking like a rug.
- Charts become readable, which is a prerequisite for any technical trader to build a position.
- Volume compounds because volume attracts volume — a token with $1M in daily turnover is discovered by aggregators, bots, and screeners that ignore illiquid pairs.
None of this guarantees an outcome. Avalanche builds the conditions under which a market can grow. The market still has to want to grow.
From wallet to running bot
- Step 01Connect
Sign in with Phantom. No custody is taken and no seed is ever transmitted.
- Step 02Token Setup
Enter the token mint address and confirm the Pump.fun listing.
- Step 03Generate Bot Wallet
A dedicated Solana keypair is created for your token. The private key is displayed once — save it.
- Step 04Fund
Send SOL and, optionally, an initial token allocation to the bot wallet to seed the book.
- Step 05Fee Redirect
Set the daily fee percentage that flows into the engine.
- Step 06Select Strategy
Choose Drift, Current, or Avalanche. The choice can be revisited later.
- Step 07Release
Confirm on the Ready to Release screen. The bot begins quoting within one block.
- Step 08Monitor
Track depth, volume, and health from the dashboard at any time.
Custody and isolation
Phantom signs every session. Avalanche never has access to your primary wallet's private key.
Each token operates from a dedicated keypair. Compromise of one wallet cannot affect another.
Dashboards, wallets, and configurations are scoped to the connected address. Other users cannot read your setup.
Common questions
Do I need to give up my token supply?+
No. The engine works with whatever token balance you fund the bot wallet with, and it never touches your treasury.
Can I stop it at any time?+
Yes. Withdraw the bot wallet balance and quoting stops in the next cycle.
Does Avalanche take a fee?+
The engine funds itself from the fee redirect slider you set. There is no separate subscription.
What happens after Pump.fun bonding?+
The Avalanche strategy migrates working liquidity into Meteora after graduation so the market continues to trade cleanly.
Is this financial advice?+
No. Market making improves book quality; it does not guarantee price appreciation.
Terms used in this document
- Spread
- The distance between the best bid and best ask, expressed in basis points.
- Depth
- The cumulative size available in the book within a given distance from mid price.
- Skew
- Asymmetry between bid and ask sizing, used to lean the book toward reducing inventory.
- Inventory
- The bot wallet's current holding of the token relative to its neutral target.
- Drawdown circuit
- A hard stop that pauses the bot if realized losses exceed the strategy limit.
- Fee redirect
- The percentage of Pump.fun creator fees routed from the token to the bot wallet.
Ready to deepen your book?
Connect a wallet, configure a strategy, and put the engine to work.