Bonding Curve
Last updated
Last updated
The bonding curve in SupremeDAO is a mechanism that gradually increases the value of each newly minted YAI 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:
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