A bonding curve is a mathematical equation used to create a relationship between the price and the circulating supply.
The basis of the curve is that when a person purchases an asset with a strict upper limit, each subsequent buyer will need to pay slightly more for it.
Bonding curve contracts sell tokens to users by accurately calculating the token price and selling them to users by creating a market not dependent on crypto exchanges.
The contract calculates the average price and prices the assets accordingly. The contract also ensures that the price of each token increases as and when it issues more tokens.
Categories: Tradfi & Defi
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