> For the complete documentation index, see [llms.txt](https://docs.div.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.div.fun/core-concepts/the-bonding-curve.md). # The bonding curve Most div.fun tokens begin life on a bonding curve. The curve is an automated market that prices a token from a formula, with no order book and no counterparty. It is the price-discovery phase of a token, before it graduates to an open market. ### How a curve prices a token A bonding curve is a function that maps the token's circulating supply to its price. As supply is bought out of the curve, the price rises along the curve; as supply is sold back, the price falls. The curve always quotes both a buy and a sell price, so there is always liquidity. In practice: * **Buying** sends HYPE into the curve and receives tokens. Each buy moves the price up the curve, so earlier buyers pay less per token than later ones. * **Selling** returns tokens to the curve and receives HYPE. The curve buys them back at the current curve price. Because the price is a deterministic function of supply, there is no slippage beyond what the curve itself defines, and no need for anyone to provide liquidity. The curve is the liquidity. ### Why launch on a curve A curve lets a token start trading immediately, with zero starting liquidity and no risk of an empty order book. It also makes early price discovery fair and legible: the rule is public, the same for everyone, and visible on the token's [page](/for-traders/the-token-page.md) as curve progress. ### Progress toward graduation Every curve has a **target** — the amount of HYPE the curve must collect before the token graduates. The token's page shows how far along the curve is, as a percentage. When the target is reached, the token [graduates](/core-concepts/graduation.md) automatically. Until graduation, a token is in its bonding phase. Trades on the curve carry the token's configured dividend share — holders earn dividends from curve activity just as they do from pool trading. The curve phase builds the HYPE that seeds the pool at graduation. ### Fees during the curve phase Trades on the curve carry a small **protocol fee** that supports the protocol, as well as the token's **dividend share**. The dividend share flows to the creator and holders. The protocol fee does not reduce the HYPE counted toward the graduation target by a meaningful amount. See [economics](/for-creators/economics-and-fees.md) for how fees flow. ### Direct liquidity, the alternative A creator can skip the curve and launch with **direct liquidity** instead — seeding a HyperSwap pool immediately. This suits a token that already has backing and wants to open straight onto the market. See [launch modes](/for-creators/launch-modes.md) for the trade-offs. Continue to [graduation](/core-concepts/graduation.md) to see what happens when a curve completes. Most div.fun tokens begin life on a bonding curve. The curve is an automated market that prices a token from a formula, with no order book and no counterparty. It is the price-discovery phase of a token, before it graduates to an open market. ### How a curve prices a token A bonding curve is a function that maps the token's circulating supply to its price. As supply is bought out of the curve, the price rises along the curve; as supply is sold back, the price falls. The curve always quotes both a buy and a sell price, so there is always liquidity. In practice: * **Buying** sends HYPE into the curve and receives tokens. Each buy moves the price up the curve, so earlier buyers pay less per token than later ones. * **Selling** returns tokens to the curve and receives HYPE. The curve buys them back at the current curve price. Because the price is a deterministic function of supply, there is no slippage beyond what the curve itself defines, and no need for anyone to provide liquidity. The curve is the liquidity. ### Why launch on a curve A curve lets a token start trading immediately, with zero starting liquidity and no risk of an empty order book. It also makes early price discovery fair and legible: the rule is public, the same for everyone, and visible on the token's [page](/for-traders/the-token-page.md) as curve progress. ### Progress toward graduation Every curve has a **target** — the amount of HYPE the curve must collect before the token graduates. The token's page shows how far along the curve is, as a percentage. When the target is reached, the token [graduates](/core-concepts/graduation.md) automatically. Until graduation, a token is in its bonding phase. Trades on the curve carry the token's configured dividend share — holders earn dividends from curve activity just as they do from pool trading. The curve phase builds the HYPE that seeds the pool at graduation. ### Fees during the curve phase Trades on the curve carry a small **protocol fee** that supports the protocol, as well as the token's **dividend share**. The dividend share flows to the creator and holders. The protocol fee does not reduce the HYPE counted toward the graduation target by a meaningful amount. See [economics](/for-creators/economics-and-fees.md) for how fees flow. ### Direct liquidity, the alternative A creator can skip the curve and launch with **direct liquidity** instead — seeding a HyperSwap pool immediately. This suits a token that already has backing and wants to open straight onto the market. See [launch modes](/for-creators/launch-modes.md) for the trade-offs. Continue to [graduation](/core-concepts/graduation.md) to see what happens when a curve completes. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.div.fun/core-concepts/the-bonding-curve.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. 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