Bonding Curves Explained: How Launchpad Pricing Works
No order book, no separate liquidity provider -- a bonding curve sets price algorithmically from supply and committed ETH. Here's the mechanic in plain terms.
Every token launched through Launchpad starts on a bonding curve rather than a traditional order book or a separately-funded liquidity pool.
The mechanic
Price is set algorithmically from the token's circulating supply and the ETH committed to its pool -- there's a formula, not a market maker or a liquidity provider deciding price. Every buy moves supply up the curve and price with it; every sell moves both back down. The curve itself is the entire market until the token graduates.
Why this exists
It removes the need for a creator to seed a separate liquidity pool before anyone can trade -- the curve provides liquidity from the first buy. Once a token accumulates enough commitment, it Graduates: trading moves off the curve and into full market trading, the same Graduated status Trenches tracks and BattleCard eligibility requires.