What is Bonding Curve?
A mathematical formula that sets a token’s price automatically based on its circulating supply — price rises as more tokens are bought.
A bonding curve is a smart-contract pricing mechanism where the token price is a deterministic function of supply. Each buy pushes the price up the curve; each sell moves it back down. There is no order book and no counter-party — the contract itself is the market maker.
Launchpads use bonding curves so a token can trade instantly without anyone seeding a liquidity pool. Early buyers get the lowest prices, which rewards speed but also enables sniping. When enough has been bought to fill the curve, the token graduates and real DEX liquidity is created.
Understanding the curve matters for buyers: the same dollar amount buys far fewer tokens later on the curve, and slippage grows as the curve steepens.
Related tools & guides
Related terms
Pump.fun
A Solana launchpad that lets anyone create a tradable memecoin in seconds using a bonding-curve model with no upfront liquidity.
Graduation
The moment a launchpad token fills its bonding curve and migrates to a decentralized exchange with permanent liquidity.
Slippage
The difference between a trade’s expected price and the price it actually executes at, driven by liquidity depth and volatility.
Liquidity Pool
A smart-contract reserve of two paired tokens that lets people trade against it on a decentralized exchange.