The Simple Rationality of Token Bonding Curvesby@spicyhotwings
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The Simple Rationality of Token Bonding Curves

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A token bonding curve is a mathematical function that creates a relationship between the supply of an asset and its price. It is essentially a decentralized automated market maker, built using a smart contract on the [SORA] network. SORA is a substrate network built for the DeFi future, it uses a token bond as its primary market maker. The curve is designed to match the type of function that incentives that particular action. The price of a token is a function of the token supply, with a greater increase in supply resulting in a greater value.

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