What is a bonding curve?

A bonding curve is a formula that sets a token's price automatically from how much of the supply has already been bought. Early buyers pay less. Each new buy moves the price up the curve, and each sell moves it back down.

Why launchpads use them

A bonding curve means a new token can trade instantly without anyone having to supply a separate liquidity pool. When enough has been bought, the launchpad typically moves the token to a regular exchange pool. That step is called graduation.

What it means for traders

• The earliest buyers get the steepest discount. That's why snipers and bundled buyers race for the first moments.
• A token's price on the curve reflects buying so far, not any underlying value.
• Selling back into the curve before graduation can be expensive if many others are selling too.