What is PVI?
PVI stands for Pump Volume Index. It is designed to turn the level of trading activity across eligible Pump.fun markets into a tokenized, market-traded index.
The protocol watches verified Pump and PumpSwap trades over a rolling 24-hour window. After failed transactions, duplicates, excluded wallets, obvious wash activity, and other ineligible volume are removed, the remaining eligible USD volume produces PVI’s target price.
The target does not force a market price and does not promise that one PVI can always be redeemed for that amount. It is a reference generated by the activity index. Traders still decide the real price of PVI in open markets.
How is the target calculated?
The calculation uses USD values with integer precision. The on-chain program never uses floating-point arithmetic. Internally, prices and volume are represented in scaled integer units such as millionths of a dollar.
Because the window rolls continuously, old activity leaves the window as new activity enters it. A burst of volume can raise the target; a quiet period can lower it. Target-update limits and circuit breakers are intended to prevent a single extreme observation from instantly changing protocol capacity.
PVI, PAI and SOL.
The asset users mint and trade. Its target follows eligible Pump activity, while its real price is determined by markets.
The Pump Activity Index ecosystem token. The protocol accepts it only with a haircut, a liquidity floor and strict exposure limits.
The stronger backing asset. Every minting position must maintain a configurable minimum SOL share.
SOL and PAI do not contribute equally. If the PAI haircut is 50%, then $100 of observed PAI value contributes only $50 of effective collateral. A maximum PAI share prevents a position from relying mainly on the ecosystem’s own token.
This matters because PAI may fall at the same time as confidence in PVI falls. Treating PAI at full value would create reflexive collateral: the system would appear healthy until both assets declined together. Haircuts, caps and liquidity checks reduce that risk but cannot eliminate it.
How minting works.
- Open a position.A wallet receives its own on-chain position account.
- Deposit SOL.SOL enters the program-controlled collateral vault and becomes the primary backing for that position.
- Optionally deposit PAI.PAI enters a separate token vault. Its oracle value is reduced by the configured haircut.
- Calculate effective collateral.The program checks prices, freshness, PAI liquidity, the minimum SOL share, the maximum PAI share and all collateral caps.
- Choose PVI debt.The requested debt must remain below the wallet ceiling, protocol ceiling and collateral-based borrowing capacity.
- Mint PVI.Only after every check succeeds does the program create PVI and record exactly matching debt.
If the current target were $0.10, $106.66 of permitted debt value would correspond to approximately 1,066 PVI. These values are examples, not promised production parameters.
Where does PVI’s market price come from?
PVI may trade through PVI/SOL and PVI/USDC liquidity pools. Although USDC is not protocol collateral, a PVI/USDC market can still be useful for price discovery. A trading pair is a market venue; it is not automatically part of protocol backing.
PAI may trade through its own PAI/SOL pool. When traders buy PAI from that pool, SOL enters the pool. When traders sell PAI, SOL leaves it. That SOL belongs to the liquidity position and must never be reported as permanent protocol reserve.
Derived from eligible 24-hour Pump volume. Used by collateral and risk logic.
Derived from sufficiently liquid, manipulation-resistant market observations.
The Markets page displays both values and their deviation. A difference is information, not necessarily a malfunction. There is no unconditional one-to-one redemption at the target and no guarantee that stabilization can close every deviation.
How stabilization helps.
When PVI trades below target
A strictly limited protected reserve may spend SOL to acquire PVI from the market and burn it. Reducing circulating PVI can create upward pressure, but the action is constrained by reserve availability, per-epoch spending limits, cooldowns, minimum liquidity, maximum slippage, TWAP checks and oracle freshness.
When PVI trades above target
Additional PVI may be minted and sold only against fully accounted collateral and within debt ceilings. This can increase supply and create downward pressure. The program must never create unbacked PVI merely because the market price is high.
Repayment, withdrawals and liquidation.
Position owners can add SOL or PAI, repay PVI debt by burning PVI, and withdraw collateral when the remaining position still satisfies every risk rule. Closing a healthy position means repaying all outstanding debt and then withdrawing the remaining collateral.
Prices move. If SOL or PAI falls, if the PVI target rises, or if PAI loses eligible liquidity, a position’s collateral ratio can deteriorate. Once it crosses the liquidation threshold, a liquidator can repay part of its PVI debt and receive collateral plus a configured penalty.
If liquidation cannot recover all debt, the remainder becomes explicit bad debt. Bad debt is never hidden by simply changing an accounting number. Insurance settlement must correspond to a real PVI burn or a real authorized transfer.
Deposits, repayments and safe withdrawals remain available when the protocol and oracle are live.
Debt is burned and real collateral is transferred according to capped liquidation rules.
Indexer and oracle reporter.
The indexer verifies supported Pump and PumpSwap programs and records raw and eligible activity separately. Each trade receives a canonical identity so routed or repeated delivery does not create duplicate volume.
Failed transactions, unverified programs, excluded addresses, self-trading, volume below the minimum, wallet-cap excess, recognizable round trips, suspicious bursts and manipulation patterns can be excluded under transparent policy. Checkpoints and backfills allow processing to resume without silently losing or repeating history.
Provider-budget controls preserve a minimum credit reserve and can stop optional work before a data provider is exhausted. Retries are bounded, and stale data becomes visibly unavailable rather than being presented as live.
The reporter independently checks that eligible volume does not exceed raw volume, recomputes the exact target formula, checks timestamps and sequence numbers, and submits only a valid observation. The program then performs its own replay, freshness, price and update-bound checks.
Reserve is not liquidity.
The protocol separates user collateral, protected SOL reserves, PAI staking balances, fee balances and market liquidity. These assets have different owners and purposes and must not be blended in reporting.
The Transparency page is intended to expose these categories independently, alongside debt, bad debt, oracle age, collateral composition, governance authorities, audit status and every launch gate.
Safety model and risks.
Primary collateral can fall quickly. Conservative ratios, liquidations, debt ceilings and pause controls reduce—but do not remove—loss risk.
PAI is reflexive junior collateral. Haircuts, caps and liquidity floors limit exposure. An extreme decline can still create bad debt.
Stale or inconsistent data stops sensitive actions. Multiple checks cannot guarantee every provider or reporter is honest or continuously available.
Thin pools can distort prices. TWAP, liquidity and deviation checks help, but market-price inputs remain attack surfaces.
Stabilization reserves are finite. Limits intentionally protect the system even if that means PVI remains below target.
Correlated SOL, PAI and PVI moves can cause many positions to fail together. Caps and shutdown controls contain exposure but cannot guarantee solvency.
A coding, arithmetic, account-validation or authority error could lose funds. Independent audits and adversarial testing are mandatory before accepting funds.
PVI is experimental and variable-price. It is not a bank deposit, stablecoin promise or guaranteed investment.
What exists now?
A separate protocol program, SDK calculations, indexer safeguards, reporter verification and website review experience exist locally. The program compiles and begins paused. The current UI disables real minting and uses a transparent calculation preview.
The previous program is not upgraded or reused by this protocol. Its closed deployment and remaining historical accounts are separate and must never be represented as protocol collateral or reserves.