Bonding Curve
Last updated
Last updated
Every token created on FuelUp has a fixed total supply of 1 billion. Out of which 800 million are put on sale on the platform and the other 200 million are locked. The purpose of selling 800 million tokens is to raise around 4 ETH, which will be later used to give real-world value to your token.
Bonding Curve is a mathematical concept that defines the relationship between the price and supply of a token. Unlike traditional cryptocurrencies or meme coins, where prices are often volatile and set by external market forces, bonding curves use mathematical formulas to determine token prices in a structured and transparent manner.
As more and more tokens are bought, the price of the token goes up and more ETH is deposited in the bonding curve.
Once the bonding curve is completed (i.e., filled with 4 ETH), the tokens are said to be bonded and they can be put on the with the liquidity that has been raised and the remaining 200 million tokens (previously locked). Now the token is tradable on the largest DEX on the Fuel blockchain. This gives the tokensome real-world value.
You can track the progress of the bonding curve of any token on FuelUp on the token details page. The bonding curve shows the percentage that is filled at the moment. Underneath that, you can also see how much ETH is in the bonding curve and how many tokens are available for sale.
NOTE -
The bonding curve will go up as more and more tokens are bought and it goes down as more and more tokens are sold.
Where -
x is the amount of tokens in the bonding curve (initially 1 billion)
y is the amount of ETH raised in the bonding curve
k is a constant.
The bonding curve on FuelUp works similarly to many popular automated market makers (AMMs) like , , etc. based on the constant product formula.
