bonding curve
A formula that sets token price automatically as supply is bought.
Definitions
A pricing mechanism where a token's price rises along a mathematical curve as more is bought and falls as it's sold, used by launchpads like pump.fun to let tokens trade instantly without seeded liquidity.
bonding curve In A Sentence
Origin & Usage
DeFi primitive popularised for memecoin launches on platforms like pump.fun.
People Also Ask
What is a bonding curve in crypto?
It's a formula that automatically sets a token's price based on its supply — the price climbs as people buy and drops as they sell, so no seeded liquidity pool is needed.
How does a bonding curve work?
Each buy pushes the price further up the curve and each sell moves it back down, meaning the earliest buyers get the lowest prices and later buyers pay more.
Why do memecoins use bonding curves?
They let a token launch and trade instantly without anyone providing liquidity first, which is why launchpads like pump.fun use them for fair-launch memecoins.
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