This article discusses the concept of bonding curves in the crypto sector. Bonding curves are mathematical models used to manage the price of crypto assets in relation to their supply. They establish a correlation between supply and price, with the price being automatically adjusted by an algorithm. Bonding curves are used to automate token distribution, liquidity, and pricing on platforms like pump.fun. The more assets are purchased, the more supply enters circulation, leading to a price increase, and vice versa. Bonding curves can be modified through mathematical models to describe different types of curves, such as logarithmic, linear, and exponential curves. These curves provide liquidity and stability to token pricing. Projects like pump.fun and Bancor leverage bonding curves to create stability and transparency in token pricing. Overall, bonding curves aim to establish self-sustaining markets driven by supply and demand dynamics.



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