Earning Strategies

Disclaimer

This page describes hypothetical scenarios of how the protocol mechanics work. It is not financial advice and not a call to action. Token markets are highly volatile — any participant can incur financial losses. You are solely responsible for your decisions. Always do your own research and understand the risks before interacting with any DeFi protocol.

This page explains possible economic scenarios where a borrower may earn from launching a token through Moono Protocol.

How It Works

When you take a loan and launch a token, Moono Protocol creates the token on pump.fun and makes the initial buy from the bonding curve. The purchased tokens are held as collateral. You have multiple ways to close the loan, each with a different payout structure.

Surplus split

On any liquidation path (Self-Liquidation, Sell & Liquidate), the surplus — sale proceeds above the borrowed amount — is split three ways:

• LP: 0.00%
• Platform: 0.00%
• Borrower (you): 100.00%

The split is snapshotted on your loan at launch — admin changes to the launch configuration after you’ve opened a loan don’t affect your share. Repayment is not a liquidation; you receive 100% of the collateral tokens on repay.

Scenario 1: Repay and Sell

1. Launch — borrow SOL and launch your token
2. Build — grow the token community, attract holders, create engagement
3. Repay — repay the loan before it expires; the collateral tokens are returned to your wallet
4. Sell — sell the tokens on the open market at the current price

When it’s profitable: if the token price has risen since launch, the tokens you receive back are worth more than the total loan cost (borrowed amount + fees + interest).

Example

• You borrow 1 SOL to launch a token, total cost ~0.11 SOL in fees and interest
• The protocol buys tokens on the bonding curve with your 1 SOL
• The token gains traction, the price rises significantly
• You repay the loan (~1 SOL goes back to the liquidity pool)
• You receive the collateral tokens, now worth 3 SOL on the market
• You sell for 3 SOL — your profit is 3 - 0.11 = ~2.89 SOL

Scenario 2: Self-Liquidation

As a borrower, you can call liquidate on your own loan at any time (no expiry check). The protocol sells the initial-buy collateral (on bonding curve or PumpSwap, whichever is live), repays the LP pool, and distributes the surplus across LP / platform / you.

1. Launch — borrow SOL and launch your token
2. Build — grow the token community, attract holders
3. Liquidate — call liquidate on your own loan; the protocol sells the collateral, repays LP, and splits surplus

When it’s profitable: if the SOL proceeds from selling the collateral exceed the borrowed amount, your share of the surplus + the launch overhead refund land back on your wallet.

Example (current mainnet split)

• You borrow 1 SOL, total upfront cost ~0.11 SOL (fees + interest)
• The token price rises, the initial-buy collateral is now worth 2.5 SOL
• You call liquidate — the protocol sells the tokens for 2.5 SOL
• 1 SOL goes back to the liquidity pool (repaying the loan)
• Surplus = 2.5 − 1 = 1.5 SOL, split as follows:
  • LP share: 1.5 × 0.00 ≈ 0.0000 SOL
  • Platform share: 1.5 × 0.00 ≈ 0.0000 SOL
  • Your share: 1.5 × 1.00 ≈ 1.5000 SOL
• Net result: you spent 0.11 SOL upfront and received 1.5000 SOL back → profit of ~1.3900 SOL

Note

With the current mainnet split of 100.00% to the borrower, repaying-and-selling typically beats self-liquidating for a profitable token — repay returns 100% of the collateral, you sell anywhere you want at full upside. Self-liquidation is most useful for a clean SOL exit when you don’t want to handle the tokens (or don’t have SOL on hand to repay).

Scenario 3: Sell & Liquidate (Bundle Wallets)

If you launched the loan from a Launch Preset with bundle wallets, each bundle wallet holds a slice of the token bought during the launch. Plain Liquidate only sells the initial buy — bundle holdings must be unwound first (the program rejects liquidate_0 when bundled_base_amount > 0).

The loan page exposes a one-click Sell & Liquidate action that:

1. Sells all base-token balances held by the bundle wallets via the bundle sell instruction
2. Routes the SOL proceeds back to the protocol
3. Liquidates the loan in the same flow, applying both the initial-buy and bundle-buy proceeds against the borrowed amount
4. Splits the combined surplus 3-way (LP / platform / you)

You can also do these steps individually — Sell Selected and Collect SOL on the preset page operate on a chosen subset of bundle wallets, and Liquidate on the loan page closes the position once bundle base is unwound.

When it’s useful: any time you want a clean SOL exit on a launch that used bundle wallets. Without this flow you’d have to manually sell each bundle wallet’s holdings before liquidating.

Repay vs Self-Liquidation vs Sell & Liquidate

	Repay	Self-Liquidation	Sell & Liquidate
You receive	Initial-buy + bundle-base tokens (100%)	Your share of surplus on the initial buy (100.00%)	Your share of surplus on initial buy + bundle (100.00%)
Bundle base tokens	Swept to your wallet automatically	Must be unwound first via Sell & Liquidate or bundle_sell_all	Sold automatically as part of the action
Requires	SOL to repay the loan	bundled_base_amount == 0 first	Nothing extra
Best when	Token is profitable — you keep all upside	Loss or unwanted token — simple SOL exit	Profitable bundle launch — full SOL unwind in one click

What Drives Profitability

The key to any earning scenario is token demand. The protocol handles the mechanics — the loan, the launch, the settlement. But the token’s market value depends on:

• Community — building genuine interest and engagement around the token
• Visibility — getting attention through social media, communities, and other channels
• Utility or narrative — giving people a reason to hold the token

The protocol enables a low-cost launch. What happens after launch depends on the effort put into the project.

Earning as a Liquidity Provider

You don’t have to be a borrower to earn on Moono Protocol. Liquidity providers earn interest from every loan taken:

• Deposit SOL into the liquidity pool and choose your risk tier (tick)
• Earn interest every time a borrower takes a loan funded by your tick
• Interest accrues automatically — the value of your LP shares grows as loans are repaid with interest

Your effective yield depends on two factors: the interest rate of your tick and how often your liquidity is utilized. Lower ticks earn less per loan but are borrowed more frequently; higher ticks earn more per loan but may sit idle. See the Liquidity Provider Guide for details.

Earning from Token Price Growth

Beyond lending mechanics, you can also earn simply by holding tokens launched through Moono Protocol. If you believe in a project launched on the platform, you can buy its tokens like any other market participant. If the token grows in value, you profit from the price appreciation.

You can buy and sell pump.fun-launched tokens directly through the protocol via MTrade — a free universal trading terminal Moono provides on top of pump.fun and PumpSwap:

• One ALT per token covers both pre- and post-graduation life — generate it once and reuse for every trade
• Buy Exact, Buy Market, and Sell all route automatically between the bonding curve and PumpSwap pool
• No protocol fee on trades — only the underlying venue’s fees apply

This is standard token trading and is not specific to Moono Protocol — the same risks and opportunities apply as with any token purchase.

Risks

Important

These scenarios describe potential outcomes, not guaranteed results. The majority of token launches may not result in profit. Possible losses include:

• Full loss of fees and interest — if the token price drops, you lose the upfront costs paid for the loan
• Collateral devaluation — if the token price falls below the loan amount, self-liquidation returns less than what was borrowed; fees are still lost
• Market impact — selling large amounts of tokens can significantly move the price down, especially on bonding curves with low liquidity
• Time pressure — loans have a fixed duration (current min/max in Economics); if you don’t act before expiration, the protocol admin may liquidate your loan

Any activity involving token launches and trading carries significant financial risk. Other market participants may incur losses as a result of token price movements. This documentation describes protocol mechanics only and does not constitute an endorsement or recommendation of any particular strategy.