# š£Bonding Curve 101

The Bonding Curve is a powerful mathematical concept that has gained popularity in the world of decentralized finance (DeFi) and blockchain-based networks. The **Liquidity-driven Curation Mechanism** offers a secure, transparent, and traceable guarantee by tokenizing untradable and intangible virtual assets such as data, IPs, AI Agents, influence, and MEMEs.

## āļø Bonding Curve 101

Let * R* be the current reserve of the parent currency(say, $BOOM); Let

**P****be the price of BLP Tokens(the share token of Bonding Pool) ; Let**

**S***be the current circulating supply of BLP Tokens. So we have the reserve ratio*

*:*

**K**When a user buys an infinitesimal amount of BLP tokens **dS**** **(selling simply means * dS < 0*), we have:

After performing the integral, we have(* C* is arbitrary constant for a given K):

If the total supply of BLP token increases from * S_0* to

*, then the price increases from*

**S***to*

**P_0***. The relationship between the two can be expressed as:*

**P**If a user buys a total of * N* BLP tokens, bringing the total supply from

*to*

**S_0***, the total paid amount of parent currency*

**S_0+N***is:*

**A**then, we have:

Let's simplify the bonding curve function mentioned in the previous section. Let

Thus, we have:

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