A bonding curve is a mathematical formula that defines the relationship between the price and supply of a token. It helps determine how the price changes as tokens are bought or sold.
How It Works:
The more tokens bought, the higher the price.
The more tokens sold, the lower the price.
Smart contracts automate these price changes.
Why It Matters:
Ensures fair and predictable pricing.
Supports automated liquidity in DeFi projects.
Encourages early adoption with lower entry prices.
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