Jason Goldberg Ⓜ️ 💜
@betashop.eth
i've been kinda obsessed with Bonding Curves smart contracts lately as they can ensure constant liquidity. Any quantity of tokens can be purchased or sold at any time, with the price being dictated by the curve, reducing the typical risks associated with illiquid markets. "Bonding Curve" is big word though and can represent many different things, as depending on the formula for the curve the associated product can range from non-speculative to wildly speculative so the first thing i always do when seeing a new bonding curve project is to plug the formula into simulator (or chatgpt) to graph the curve for example, a new project launched yesterday (not naming names) -- here is the curve = hugely speculative it's important to note this because if a project's stated purpose is utility but the curve is speculative, there will likely be an imbalance
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logonaut.eth
@logonaut.eth
I so appreciate this kind of insight. Thanks, Jason. For contrast, can you share a curve that you’d consider nonspeculative — and maybe one that you feel would be in a kind of in-between gray area? 🍖 x 500
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Jason Goldberg Ⓜ️ 💜
@betashop.eth
sure, here are a couple of very different curves, with a simulator you can play with https://www.desmos.com/calculator/7azp39rfc2
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logonaut.eth
@logonaut.eth
Thanks! So is it that sharply parabolic curve in your first image (previous post) that signifies “highly speculative” in contrast to the more S-shaped plots in the images above?
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