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  • TradingStrategy.ai operated by Trading Strategy DAO LLC. Majuro, Marshall Islands.
    1. Trading and DeFi terminology
    2. Bonding curve

    What Is Bonding curve?

    In a bonding curve based exchange, like an AMM, market makers do not set limit orders to provide liquidity. Instead, the liquidity follows a predefined mathematical function. Every time there is a buy or a sell, the price moves up or down defined by this function.

    Read more about xy=k curve slippage, price impact on Paradigm’s post.

    See also: XY liquidity model.

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    TradingStrategy.ai operated by Trading Strategy DAO LLC. Majuro, Marshall Islands.