Bonding Curve

Bonding curve smart contracts are employed to ensure balanced supply and demand. A bonding curve represents a mathematical concept that elucidates the relationship between the price and supply of an asset. Bonding curve smart contracts enable the sale of assets to investors by calculating the token/coin price based on an asset like bitcoin (BTC) and issuing the asset after payment. Additionally, investors retain the option to repurchase the asset. With a bonding curve contract, as users acquire a limited-supply asset, subsequent buyers are required to pay slightly more for the asset.