Bonding Curve Explained

Bonding curve is the contract that governs the price dynamics of an ERC20 TOKEN via a dual bonding curve mechanism. There are two bonding curves that make up the tokenomics of $WIG. At this explanation, you can think of TOKEN as WIG, and BASE as ETH: 1) A fixed-price curve that y = c, where the TOKEN price is invariant at 1 BASE/TOKEN (the floor price).- TOKENs are minted from floor reserves by exercising OTOKEN call options equivalent to the BASE amount.- TOKENs can be consistently redeemed from floor reserves at the floor price.​ 2) A variable-price curve that employs the xy=k formula for TOKEN price discovery. An initial TOKEN supply is created by using virtual assets. - Virtual tokens are minted into market reserves, balanced by a corresponding quantity of virtual BASE. TOKEN pricing on the market reserves spans a range of 1 BASE/TOKEN (lower bound) to infinity BASE/TOKEN (upper bound). The market reserve facilitates the buying and selling of TOKENs. - The integration of these reserves forms the comprehensive bonding curve for the TOKEN. - The constructs of floor reserves and market reserves underpin this contract. - Floor reserves are BASE pools allowing TOKEN redemption at a static floor price. - TOKENs are exclusively minted from floor reserves via exercising OTOKEN call options using BASE. - Market reserves incorporate variable amounts of BASE and TOKEN subjected to market-driven pricing derived from a virtual xy=k invariant. An initial TOKEN supply is minted into the market reserves wiith an equal virtual BASE reserve amount. TOKEN pricing in the market reserves varies from a minimum of 1 BASE/TOKEN (floor price) to an upper limit of infinity BASE/TOKEN. - The contract is designed to interact with external contracts including: OTOKEN, VTOKEN, and a FEES contract. - It is also equipped to levy protocol and UI hosting provider fees. The TOKEN's initial supply is minted to the bonding curve balanced by an equal amount of virtual BASE.