Exponential

With an exponential bonding curve, the price of an NFT is increased by a certain percentage (also called delta) every time an item is bought from the pool. Conversely, the price of the NFT is decreased equivalently every time an item is sold to the pool.

To calculate the equivalent decrease, convert the percentage to a decimal index (e.g. for 50%, the index would be 1.5) and divide the price by this number.

For example, a liquidity provider may create an NFT<>SMR pool with a Start Price of 2 SMR and a delta of 50%. Assuming enough liquidity, the price of an NFT will increase to 2 + 50% = 3 SMR after one item is purchased from the pool. After a second an item is purchased, the price will increase to 3 + 50% = 4.5 SMR. At any point, if an NFT is sold to the pool, the price will be divided by 1.5.