What are bonding curves in cryptography?
Bonding curves help automate supply, demand, and value in DeFi.
A bonding curve is a mathematical function that establishes the relationship between the price of a token and its supply. Essentially, it defines how the price of a token changes as it is added to or removed from the supply.
These curves are used in DeFi (decentralized finance) to create token markets that are automatic and do not depend on a centralized exchange.
In summary, bonding curves automate supply, demand, and value in DeFi, which can help create more efficient and transparent systems.
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