# How It Works

Soonic introduces a simplified bonding curve system built on the Sonic Chain, enabling users to participate in token creation, trading, and liquidity provision. The bonding curve ensures dynamic pricing based on demand, using innovative mathematical models.

<figure><img src="/files/ga1DmNC1SirZyx3SF4gv" alt=""><figcaption><p>Simulating the Contract Using Random Transaction </p></figcaption></figure>

### Core Functions

The bonding curve relies on the mathematical formula **`x * y = k`**

The **`BondingCurve`** contract governs the bonding curve system, which dynamically adjusts token prices based on the number of tokens sold and the ETH collected. Key features include:

* **Dynamic Pricing:** Token prices increase as more ETH is collected, ensuring fair and transparent valuation.
* **Liquidity Provision:** 20% of the token created allocated to liquidity, and 80% is allocated for bonding curves.
* **Slippage Management:** Built-in mechanisms ensure slippage is minimized to protect users.

**Completing Bonding**

Once the bonding target is reached:

* The bonding curve closes.
* ETH is split (90% for liquidity, 7% for the treasury, 3% for creator).
* Liquidity is added to Sonic Swap, ensuring ongoing trading.
* LP Sent to Dead Address.
* X amount of tokens, approximately 15-20%, will be added to ensure the bonding price aligns with the listing price.


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