Jason Goldberg βοΈ π
@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 π©πβππΉ
@lo
I so appreciate this kind of insight. Thanks, Jason. For contrast, can you share a curve that youβd consider nonspeculative β and maybe one that you feel would be in a kind of in-between gray area? π x 500
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Jason Goldberg βοΈ π
@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 π©πβππΉ
@lo
Thanks! So is it that sharply parabolic curve in your first image (previous post) that signifies βhighly speculativeβ in contrast to the more S-shaped plots in the images above?
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Jason Goldberg βοΈ π
@betashop.eth
correct, the flatter the curve the less speculative the slope of the curve is indicating how much more the next person needs to pay, if the slope is high than every new purchase from the curve is dramatically shifting the price; if the curve is flatter than it takes more time for the price to accelerate
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