Define ‘Bonding Curve’ in the Context of a Token Launch and Its Relation to AMM Formulas

A bonding curve is a mathematical function that defines the relationship between the price of a token and its supply. In a token launch, it allows users to buy and sell the token directly from a contract at a price determined solely by the curve.

The AMM formulas ($x y=k$, etc.) are specific types of bonding curves that govern the exchange rate between two assets in a pool, effectively setting the price based on the reserve ratios.