> ## Documentation Index
> Fetch the complete documentation index at: https://docs.rise.rich/llms.txt
> Use this file to discover all available pages before exploring further.

# Bonding Curve

> How token price is determined on RISE.

## How the Bonding Curve Works

The bonding curve determines token price based on supply. On RISE, the supply is elastic:

* **Buys** mint new tokens in real time at the current quoted price
* **Sells** burn tokens out of supply permanently

This is fundamentally different from traditional AMMs where tokens already exist and trade against a fixed pool. On RISE, the protocol is always the counterparty — there are no external LPs involved.

## Why Elastic Supply Matters

Because the protocol mints and burns tokens directly, it holds the liquidity backing every token in circulation. This is the architectural foundation that makes the floor price possible.

In a standard launchpad:

* Liquidity is provided by external LPs who can withdraw at any time
* Token supply is fixed, meaning early holders hold the majority
* There is no structural floor — price can go to zero

On RISE:

* Liquidity is protocol-owned and cannot be withdrawn
* Supply expands on every buy and contracts on every sell
* The floor is enforced by the reserves accumulated through every trade

## Price Impact

Because supply is elastic and the protocol is the sole counterparty, price impact is determined by the bonding curve parameters set at launch. Each token's pool is fully isolated — the performance or liquidity of one token has no effect on any other.