Educational Byte: What Are Bonding Curves and How Can You Earn With Them?

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Bonding curves are mathematical functions that link a token’s supply to its price, creating a dynamic pricing mechanism. Let's learn more about them!

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Bonding curves are mathematical functions that link a token’s supply to its price, creating a dynamic pricing mechanism. This way, when someone buys tokens, the price adjusts upward according to the curve’S formula. Similarly, when tokens are sold, the supply decreases, causing the price to adjust downward. This method ensures that the price of the token always responds to changes in its demand and supply.