# Bonding Curve

### **Intro**

The Bonding Curve, calculated using the formula 𝑥 × 𝑦 = 𝑘, has been a staple in AMM (Automated Market Maker) and meme token launches. This model is known for its straightforward structure and efficiency, offering a seamless and transparent way to set token prices based on demand and supply. The bonding curve’s simplicity helps create accessible and engaging entry points for users, making it a popular choice for meme coins and creative launches on PumpSpace.

### **Definitions**

**The Total Supply** is 1,000,000,000 tokens:

* 80% of the tokens are allocated for sale;
* 20% of the tokens are allocated for liquidity on listing

**Virtual collateral**

AVAX : 100 units of virtual AVAX initiate the curve and set the initial token price

PEARL : 4,000 units of virtual AVAX initiate the curve and set the initial token price

**Liquidity targets:**

* AVAX: 272.527 AVAX = 393.04 AVAX - 100 AVAX *(virtual collateral, which will be burned) - 20.513* AVAX *(platform listing fee)*
* PEARL : 10,901 PEARL = 15721 PEARL - 4000 PEARL *(virtual collateral, which will be burned) - 820* PEARL *(platform listing fee)*
* **TOKEN**: 10,706,431 tokens f*rom 20% of the supply,* the remaining of the supply will be burned from the initial pool to compensate for the liquidity charge of the virtual AVAX(or PEARL) collateral.

**Initial token price during the sale : 0.00000009319664492 AVAX (or 0.000003727865797PEARL)**

**Last token price during the sale: 0.000001439708033 AVAX (or 0.00005758832132PEARL)**


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