Bonding curve

A bonding curve in crypto is a mathematical formula defining the relationship between a token’s price and its supply.

It ensures automated liquidity by adjusting prices dynamically based on demand.

Typically, as more tokens are bought, the price rises; when sold, it falls. Used in DAOs, AMMs, and token economies, bonding curves create predictable, transparent pricing mechanisms, fostering decentralized finance (DeFi) innovation and reducing reliance on order books.