Bonding Curve
A bonding curve is a mathematical formula that determines a token's price based on its supply. As more tokens are bought, the price increases along the curve. When tokens are sold back, the price decreases. It's commonly used in token launches and automated market making.
Understanding the Concept
• Price automatically adjusts based on buy/sell pressure • Early buyers get lower prices; later buyers pay more • Creates guaranteed liquidity without order books • Popular in fair launch mechanisms like pump.fun
Real-World Example
A new token launches with a bonding curve where price = 0.001 × supply². When only 100 tokens exist, price is $10. After buying increases supply to 1,000 tokens, price rises to $1,000. This rewards early believers while creating automatic price discovery. If people sell, the curve works in reverse.
How Strykr Helps
Strykr tracks Bonding Curve developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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