What Is a Dynamic Bonding Curve?
How a dynamic bonding curve prices a new token, why it removes the need to seed a liquidity pool manually, and what graduation means.
Updated ยท 6 min read
The problem bonding curves solve
Traditionally, launching a token meant creating a liquidity pool and depositing both sides of it yourself. That is expensive, and it exposes the creator to immediate impermanent loss. A bonding curve replaces the pool with a formula: the contract itself is the counterparty, and the price is a function of how many tokens have been sold.
How pricing works
Each purchase moves along the curve, so early buys are cheaper than later ones and the price rises monotonically with supply sold. Because the curve is deterministic, anyone can compute the price for a given amount before trading, and no market maker is required for the token to be liquid from the first second.
Fees on the curve
Trades against the curve pay a protocol fee. Part of that fee is routed to the token creator and can be claimed at any time from the token management screen; the rest goes to the protocol and the launch platform.
Graduation
When the curve reaches its migration threshold, it graduates: the collected SOL and the remaining tokens are migrated into a standard AMM pool, and trading continues there. From that point on the token behaves like any other DEX-listed asset.