> For the complete documentation index, see [llms.txt](https://supremedao.gitbook.io/supremedao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://supremedao.gitbook.io/supremedao/bonding-curve.md).

# Bonding Curve

The bonding curve in SupremeDAO is a mechanism that gradually increases the value of each newly minted [YAI](/supremedao/yai.md) token. This curve is designed to reflect the growing value of the protocol's assets and the yield generated by its strategies. 

The bonding curve not only supports the appreciation of YAI but also stabilizes the protocol by linking the minting process to tangible assets and yield generation, thus encouraging sustainable growth within SupremeDAO.

The simplified formula for calculating the price of YAI is:

<figure><img src="https://lh7-us.googleusercontent.com/arRCAnc3OZOIb7A-jwVIKn_wkJ-dZZddNc1MMZLMzQvotAsxlrJ9wVuGNiIOJ5W3NElsodEltjEyFw-8PHCzq6ielwL-Z5YvqT1I8YdYwRh4TuCea_CNNZNVuQGxnZWjKKUDwroitWA5NoauRDyQRLk" alt=""><figcaption></figcaption></figure>

* Net Yield of Strategies refers to the total yield generated from all the strategies deployed by SupremeDAO
* Vault Value is the total value of assets held in SupremeDAO's strategies and collateral
* YAI Supply is the total number of YAI tokens in circulation


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