Bonding Curve

Every token on Hypad starts life on a bonding curve. The curve gives the token a price and a market from its very first trade, with no order book and no exchange listing needed.

What is a bonding curve?

A bonding curve is a mathematical formula that sets a token's price from its buying and selling activity. A traditional market matches buyers with sellers in an order book. A bonding curve instead uses a fixed rule to decide the price for each buy and sell.

Hypad uses a constant-product bonding curve for this first trading stage.

How it works

The basic idea is simple:

• Buying a token moves its price up the curve.
• Selling a token moves its price back down.

This ties the price directly to trading activity, so a market can form from the moment a token launches.

Price movement and your trade

How many tokens you get from a buy, or how much you get back from a sell, depends on where the curve is at that moment and on the fees that apply.

Your trade itself moves the curve. So the price you actually get can differ from the price shown just before you trade, especially for large trades or when others are trading at the same time.

Market cap and graduation

Market capitalization is roughly the current token price multiplied by the tokens in circulation.

On Hypad, a token graduates when its market cap reaches $45,000. At that point it moves from the bonding curve to a liquidity pool on a decentralized exchange. See Graduation & Liquidity.