How the AMM and Bonding Curve Work

ODIN.FUN uses a two-phase system for token trading:

1. Tokens launch on a Bonding Curve.

2. After “Ascension,” they transition into an Automated Market Maker (AMM).

This ensures smooth price discovery at launch and continuous trading afterward.

 Bonding Curve

• Exponential Curve:
  Tokens start trading on an exponential bonding curve. The price increases as more tokens are bought.

• Price Discovery:
  This model enables early price discovery and creates initial liquidity for tokens.

• Early Adopters:
  Traders who buy early typically purchase at lower prices before the curve pushes the value up.

Formula Example:
Bonding curves often follow an exponential growth equation (y = e^x), where the token price rises as supply increases.

 Automated Market Maker (AMM)

• Liquidity Lock-In:
  Once a token “ascends,” liquidity is deposited into ODIN’s AMM.

• Continuous Swaps:
  The AMM enables 24/7 token swaps using the constant product formula:

• Where:

  • X = supply of token A

  • Y = supply of token B

  • k = constant (pool balance)

• Instant Liquidity:
  Users can add or remove liquidity at any time, keeping markets active.

• Always Available:
  Trading is possible even without a direct buyer or seller  the AMM always provides a counterparty.

⚡ Why This Matters

• Bonding curves reward early adoption and establish fair token launches.

• AMMs ensure long-term liquidity and price stability.

• Together, they provide a seamless and decentralized trading experience on ODIN.FUN.