Collection.xyz Documentation
Collection.xyz
  • What is Collection.xyz?
  • Collection Concepts
    • Liquidity Pool
      • Advanced Pool
      • Basic Pool
    • Bonding Curve and Delta
    • Fee
    • Buy / Sell
    • APR
    • The Collection Whitepaper
    • Collection 1.00: Patch Notes
  • User Guides
    • Create a Trade Pool
    • Create a Buy Pool
    • Create a Sell Pool
    • Buy & Sell NFTs instantly
    • LP Strategy Guide
  • Technical Reference
    • NFT AMM
      • What Is A CollectionPool?
      • Differences Between Individual And Communal Liquidity Pool Model
      • How do I determine if a pool has sufficient liquidity to fulfil an order?
    • Fee Structure
      • Overview of the Fee Structure in NFT AMMs
      • Calculation and Collection of Fees
    • Royalties
      • How are royalties implemented?
      • Relation between Royalties and Fees in the AMMs
      • All Possible Royalty Scenarios
    • Airdrop Compatibility
      • Can Collection.xyz handle airdrops?
    • Pool Types
      • Definition of Pool Types In NFT AMMs
      • Comparison of Different Pool Types
    • Bonding Curves
      • Parameters of the bonding curves
      • Type of bonding curves
        • Linear Curve
        • Exponential Curve
        • Sigmoid Curve
      • How are the parameters used in each of the bonding curves?
      • Customizable spread curves
    • Github Repos & Addresses
    • Audit Reports
    • Technical User Flows
      • Technical Architecture
      • Create Pool
      • Swapping and Trading: User Buying NFT
      • Swapping and Trading: User Selling NFT
      • Bonding Curves and Pricing
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On this page
  1. Technical Reference
  2. Bonding Curves
  3. Type of bonding curves

Exponential Curve

A exponential curve performs a multiplicative operation where the delta acts as a multiplier function. If the pool has just sold an NFT by giving out an NFT and receiving tokens, the next price it will quote to sell NFTs at will increase by a percentage amount (known as delta).

  1. The price of the NFT increased by a percentage each time an item is bought from the pool. The reverse happens when an item is sold into the pool.

  2. delta is a percentage and assumes that the starting price is 100%. If input the delta as 20% it means we want the price to increase/decrease by 20% after each trade. For example, initial price is 1Ξ, after someone buys 1 NFT from the pool, the next price will increase by the delta to 1.2Ξ, conversely, if someone sells 1 NFT tot he pool, the next price will decrease by a multiple of the delta to 0.8333Ξ

  3. The delta is a percentage, and assumes that 100% (meaning no change to price after a buy/sell operation) is 1e18. If we want the price to increase/decrease by 20% on each buy/sell, we should input 1.2e18 to represent 120% = (100% + 20%). The initial price is 1.0. After someone buys 1 NFT from the pool, the price will be 1.2 = 1.0 * 120%. If someone sells an NFT into the pool, the price will be 0.8333 = 1.0 / 120%.

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Last updated 2 years ago