Solana: How to accurately calculate token price using bonding curves?

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Accurately Calculating Token Price Using Bond Curves

Binding curves are an essential tool for Solana developers to manage liquidity and ensure the stability of their tokens. In this article, we will learn how to accurately calculate token prices using bond curves.

Introduction to Bond Curves

A bond curve is a mathematical function that maps an input value (such as the price of a token) to an output value (such as the current market price of a token). A bond curve is designed to provide a reliable and efficient way to manage liquidity and avoid price shocks.

Token Price Calculation Using Binding Curves

To accurately calculate the token price using a binding curve, you need to follow these steps:

Step 1: Get Account Information

First, you need to get the account information of the user you want to calculate the token price for. You can use the construct library to parse the user’s public key.


from import Struct, Int64ul
import solana.rpc





Define the bonding curve structure
class BondingCurveStruct(Struct):
def __init__(self, symbol, min_price, max_price):
self.symbol = symbol
self.min_price = minimum_price
self.max_price = max_price

Get account information for the user who wants to calculate the token price
solaris_key = "YOUR_SOLARIUS_KEY" 
Replace with Solana key
user_pubkey = solaris_key.public_key()
bonding_curve = BondingCurveStruct(
symbol="SOL", 
Define the bonding curve symbol
min_price=1000, 
Set the minimum price of the bond curve
max_price=20000 
Set the maximum price of the bond with the curve
)
account_info = solana.rpc.fetch_account_info(user_pubkey, bonding_curve)

Step 2: Parse the account information

After you have obtained the account information, you need to parse it to get the information you need. You can use the built-in parse functions of the `construct' library to convert the account data into a structured format.



Parse the account information into a structured format
account_info_struct = account_info.data
bonding_curve_info = account_info_struct.account_info

Extract the minimum and maximum prices from the bonding curve information
min_price = bonding_curve_info.price.min
max_price = bonding_curve_info.price.max



Step 3: Calculate the token price using the bonding curve
Now that you have obtained the information you need, you can calculate the token price using the bonding curve. You can use simple linear interpolation or a more complex algorithm to achieve accuracy.

Set the token symbol and minimum and maximum prices
token_symbol = "SOL"
min_price_token = 1,000
max_price_token = 20,000

Calculate the token price using the bonding curve
bonding_curve_struct = BondingCurveStruct(token_symbol, min_price_token, max_price_token)
token_price = (min_price - min_price_token) / (max_price - min_price_token) * (max_price - max_price_token) + min_price_token



Step 4: Print the result
Finally, you can print the calculated token price.

Print the result
print("Token Price:", token_price)

Usage Example
Here is an example of using this code to calculate the token price for a specific user:

“python

solaris_key = “YOUR_SOLARIUS_KEY”

Replace with Solana key

user_pubkey = solaris_key.public_key()

bonding_curve = BondingCurveStruct(

symbol=”SOL”,

Define the symbol for the bonding curve

min_price=1000,

Set the minimum price of the bond curve

max_price=20000

Set the maximum price of the bond curve

)

account_info = solana.rpc.fetch_account_info(user_pubkey, bonding_curve)

Parse the account information into a structured file format

account_info_struct = account info.

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