> For the complete documentation index, see [llms.txt](https://docs.fuyo.markets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fuyo.markets/markets/what-is-fuyos-lmsr/pmm-with-bonding-curve.md).

# PMM with bonding curve

### PMM Phase 2 — PMM + Bonding Curve Markets

*\*launching soon\**

Phase 2 introduces a bonding curve pricing model for all markets from 5 minutes, 15 minutes, hourly, daily, weekly and monthly. Unlike Phase 1 (where you hold to close), Phase 2 lets you enter and exit at any time during the market window.

**Available assets:** BTC, ETH, SOL, XRP, BNB, GOLD, SILVER, OIL (more coming soon)

**Timeframe:** 5-mins, 15-mins, 1 hour, daily, weekly, monthly

**Early exit:** Yes. Shares are tradeable

{% hint style="info" %}
**The bonding curve rewards early believers** — the earlier you enter, the cheaper your shares, and the higher your potential payout if you're right.
{% endhint %}

***

#### The Core Idea — Shares, Not Stakes

In Phase 2, you're not just "staking $1 on UP." You're **buying shares** of the UP or DOWN outcome. The price of those shares changes as more people buy them. Early buyers pay less. Late buyers pay more.

This creates a trading-native experience:

* Buy early at low prices → hold to resolution for maximum payout
* Buy early → sell when the price rises → take profit before resolution
* Spot a contrarian opportunity → buy the ignored side at floor price → massive upside if right

***

#### How the Bonding Curve Works

Think of the bonding curve like a ticket price that goes up as the concert fills up. First tickets are cheap. Last tickets are expensive. But if you bought early and the show sells out, your ticket is now worth much more than you paid.

**Price range per share:** $0.03 (empty market) → $0.90 (fully sold out)

**Share price at different stages:**

| % of shares sold  | Share price |
| ----------------- | ----------- |
| 0% (first buyer)  | $0.03       |
| 10%               | \~$0.10     |
| 25%               | \~$0.19     |
| 50%               | \~$0.33     |
| 75%               | \~$0.52     |
| 90%               | \~$0.65     |
| 100% (last buyer) | $0.90       |

The price curve is **sub-linear** — it rises fast at first, then levels off. This means early movers get disproportionately cheap entry.

***

#### Expected Returns by Entry Timing (Balanced Market)

In a balanced market (equal UP and DOWN capital), here's what a correct call pays:

| When you enter      | Share price | Your return if correct |
| ------------------- | ----------- | ---------------------- |
| First 10% of shares | \~$0.05     | **\~8x** your money    |
| At 25% filled       | \~$0.10     | **\~4x** your money    |
| At 50% filled       | \~$0.22     | **\~2.2x** your money  |
| At 75% filled       | \~$0.45     | **\~1.6x** your money  |
| At 90% filled       | \~$0.65     | **\~1.3x** your money  |

> **Important:** These are returns in a balanced market. In a lopsided market, early contrarian buyers can earn **90x or more** on a correct call.

All payouts above are after the 10% settlement fee and still guarantee a positive return — even for the last buyer at 90% capacity.

***

#### Understanding Your Multiplier

**Phase 2 — Live Share Price**

In bonding curve markets, there's no single "multiplier" shown upfront — because your return depends on when you entered and what the final pool looks like at resolution.

**What you'll see when buying:**

* Current share price (e.g. `$0.08/share`)
* Estimated resolution payout range at current pool state
* Your cost basis (what you paid, including 1% trading fee)

**What you'll see on your open position:**

* Your shares held
* Your cost basis
* Current sell value (live, updates as others trade)
* Unrealised P\&L in real time