Mathematics of Bonding Curves

A bonding curve is a financial instrument proposed by Simon de la Rouviere in his Medium articles. ETH is bonded in a smart contract to mint tokens, and unbonded to burn them. Every bonding and unbonding changes the price of the token according to a predefined formula. The “curves” represent the relationship between the price of a single token and the token supply. The result is an ETH-backed token that rewards early adopters.

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