A bonding curve maps the price of an asset as a function of its supply.

The price of an asset is determined by a mathematical formula that takes into account the supply and demand for that asset. The idea behind a bonding curve is to provide a mechanism for automatically setting the price of a token based on market forces, rather than relying on a central authority to set the price.

Bonding curves are often used in DeFi protocols to create new tokens and manage the supply of existing tokens.

Some believe that bonding curves can help to create more efficient and transparent markets, while others are critical of their complexity and potential for instability.

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