> For the complete documentation index, see [llms.txt](https://docs.potionprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.potionprotocol.io/guides/nft-pricing.md).

# NFT Pricing

NFTs in Potion Protocol are priced according **Bonding Curves**.&#x20;

A bonding curve is a mathematical function describing the relationship between the price and supply of an asset.

<figure><img src="/files/NVwCiGBdwJOIt63LTKqq" alt=""><figcaption></figcaption></figure>

When tokens are purchased a bonding curve, each additional purchase drives the price up by an additional amount.

Likewise, selling tokens results in the price reducing along the curve.

### XY=K Curve

Currently, Potion Protocol only supports a single type of price curve: the xy=k curve.

The xy=k curve prices assets directly according to their ratio in the pool.

A pool with 10 NFTs and 10 ETH would therefore price the NFTs at 1ETH each.

Buying an NFT from the pool would raise the price to 11 ETH / 9 NFTs = 1.22222 ETH per NFT, while selling would reduce the price to 9ETH / 11 NFTs = 0.818181 ETH.&#x20;

The larger the amount of liquidity in the pool, the smaller the price change will result from each buy or sell.
