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Bonding Curves
The fair, scalable issuance mechanism for RUSD

Bonding Curves

Bonding curves are price functions for a token that generally involve the token being minted by the bonding curve in exchange for an underlying asset. They can take in the current circulating supply as a parameter in the formula. They are generally monotonically increasing, facilitating greater incentives for early adopters.
When coupled with a smart contract, bonding curves can escrow, buy and sell tokens in accordance with the price function. The contract can take fees for buying and selling as a fundraising mechanism for Protocol Controlled Value.
Article by Linum Labs with more details:
An introduction to bonding curves, shapes and use cases
Medium
Last modified 4mo ago
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