Curve Finance Bonding Curve: A Detailed Explanation
I. IntroductionIn Automated Market Makers (AMMs), the bonding curve defines how the price of assets changes as their relative balances inside a liquidity pool shift.Uniswap uses the constant product curve (x * y = k).Curve Finance modifies this with the StableSwap invariant, a bonding curve optimized for stable assets and like-valued tokens.This design allows Curve to achieve low slippage, high efficiency, and make it the backbone of stablecoin trading.II. The StableSwap Bonding Curve1. Conce...
Curve Finance Bonding Curve: A Detailed Explanation
I. IntroductionIn Automated Market Makers (AMMs), the bonding curve defines how the price of assets changes as their relative balances inside a liquidity pool shift.Uniswap uses the constant product curve (x * y = k).Curve Finance modifies this with the StableSwap invariant, a bonding curve optimized for stable assets and like-valued tokens.This design allows Curve to achieve low slippage, high efficiency, and make it the backbone of stablecoin trading.II. The StableSwap Bonding Curve1. Conce...
