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The ALTBC bonding curve exposes a rich set of configuration switches. Selecting the right values before launch determines how much inventory you can sell, the minimum price you will ever offer, and how sensitively the price responds to demand. This guide walks through each initialization parameter and the constraints to keep in mind to give you the understanding you need to configure a pool.
Pool configuration is a critical decision for your market, we are always happy to advise on this topic. Reach us on Discord!
Below you’ll see the terms x-token and y-token. These refer to the token that you bring to the pool (x-token) and the collateral token that is used to purchase it (y-token). Said another way, the x-token is your custom ERC-20 and the y-token is typically something like USDC or USDT.

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Parameter Overview

ParameterWhat it controls
x_addInitial supply of x-tokens deposited into the curve
p_lowerY-intercept of the price curve; the minimum starting price
VVolatility sensitivity that governs how quickly slope changes as x moves
CInitial concentration parameter that shifts the curve horizontally
x_minStarting x-position (lower bound of the tradable region)
All of these values are fixed for the lifetime of the pool. The only exceptions are C and x_add, which move only when you explicitly add liquidity according to the rules in the math spec.

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Parameter Details

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x_add — Initial Inventory

  • Definition: Total amount of token X you transfer into the Token Bonding Curve (TBC) during deployment.
  • Effect: Sets the ceiling on cumulative sales; once the curve dispenses x_add tokens, the AMM cannot sell more unless you add liquidity. Larger x_add stretches the curve over more supply, creating a smoother price climb.
  • Calibration hints: Start from the number of tokens you expect to sell via the AMM. If you plan staged releases, consider reserving inventory for later additions so that early buyers face a steeper climb and later buyers see a fresh supply infusion.

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p_lower — Initial Price Floor

  • Definition: Price intercept when x = 0.
  • Effect: Establishes the minimum price; even if demand is low, the curve will not fall below p_lower. Raising p_lower guarantees higher opening revenue but can discourage initial adoption.
  • Calibration hints: Choose desired floor value. Combine with C and V to shape how quickly the curve ramps above that floor.

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V — Volatility Sensitivity

  • Definition: Measures how aggressively the curve responds to a given trade size once you’re at a specific point on the inventory axis.
  • Effect: At the same inventory position, higher V values make each trade move price more sharply, which translates into greater volatility and higher marginal costs; lower V softens the response so prices adjust more gently.
  • Calibration hints: Dial V up when you want speculation or scarcity premiums; dial it down when prioritizing predictable fills for market makers or retail buyers.

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C — Initial Concentration

  • Definition: Horizontal shift that influences the “density” of the curve near the start of trading.
  • Effect: Larger C smooths early trades by reducing slope sensitivity near x_min; smaller values produce a sharper bend. C will update after liquidity additions using the same formula, so a well-chosen C gives you a predictable baseline.
  • Derived relationship: If you also know the target price at the end of your initial inventory (p_add), solve C = x_add / (p_add – p_lower) to confirm that your parameters line up.

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x_min — Starting Position

  • Definition: Lower bound of the trading region. You can think of it as the amount of x-tokens that have already been “synthetically sold” before the pool opens.
  • Effect: Controls the initial slope and therefore the opening spot price. Increasing x_min moves you further along the curve before the first trade occurs, which raises the initial slope and price.
  • Calibration hints: Pick a non-zero value high enough to avoid a near-infinite slope when combined with small C.

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Calibrating for Real Launches

  • Revenue targeting: Work backward from the total y-tokens you hope to collect.
  • Market depth: Low x_add paired with high V can create runaway prices.
  • Secondary markets: If you expect rapid secondary-market activity, ensure p_lower and V prevent arbitrage loops when the AMM is thin.
  • Liquidity additions: Remember that adding liquidity later increases both x_add and C using the same invariants. Plan announcements around these events to avoid surprising LPs.