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  1. Home
  2. /Glossary
  3. /Bonding Curve
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defi

Bonding Curve

A mathematical formula that automatically sets token prices based on supply.

Definition

A mathematical formula that automatically sets token prices based on supply. The more tokens that exist, the higher the price climbs. Pump.fun popularized this for meme coin launches, where early buyers get lower prices and the curve steepens as demand grows.

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Related Terms

AMM (Automated Market Maker)

A type of decentralized exchange that uses math formulas instead of order books to price trades.

Liquidity Pool

A pool of tokens locked in a smart contract that enables decentralized trading.

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A digital asset created on an existing blockchain rather than its own chain.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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