What is a Bonding Curve? Complete Guide
The concept of a bonding curve is a mathematical formula that sets the relationship between a token's price and supply. This concept is increasingly popular in DeFi projects, which use smart contracts to apply a custom formula. It can also include a mint function and burn function. Users can buy into the bonding-curve smart contract and push its price down if they're not satisfied with the price. A traditional bonding curve can either set a cap or limit supply. The former allows a project to print or burn forever without limits. The latter allows a project's supply to grow and…