# Differentiating Primary & Secondary AMMs Bonding Curves can power a myriad of use cases depending on their configuration and context in relation to other components it is integrated to within a larger system. Most bonding curves in use today are embedded into Automated Market Makers like Uniswap, Balancer, or Curve, or other decentralized exchanges whose main function is to facilitate the exchange of existing tokens via ‘`liquidity pools`’. \ \ These mechanisms can be considered **Secondary AMMs (or SAMMs)** since their **purpose is to** **facilitate secondary market exchange between tokens already in existence**. Much has been [written about this application](https://en.wikipedia.org/wiki/Constant_function_market_maker) of bonding curves, and many different [invariant functions](/bonding-curve-research-group-library/glossary.md) have been experimented with for a wide range of purposes.\ \ Another use case for bonding curves is in the direct **issuance (minting)** and **redemption (burning)** of a token. These mechanisms can be considered **Primary AMMs (or PAMMs)**, since they are the ‘source’ of token issuance when reserve assets are deposited and the ‘sink’ for token redemption when reserve assets are withdrawn from the bonding curve. **PAMMs enable dynamic supply token ecosystems and could be considered as a ‘supply discovery’ mechanism for a token deployed using these tools.** PAMMs address some of the key challenges of token design today, such as projects having to *guess* how many tokens their system will require throughout its entire lifetime. By allowing dynamic token supply according to market demand, PAMMs not only simplify early-stage decision-making but could also serve as a continuous fundraising tool for productive projects, with[ protocol-owned liquidity](https://docs.olympusdao.finance/main/overview/pol/) by default. This article briefly outlines these two use cases for bonding curves to understand the benefits they offer to token ecosystems and briefly explores how they can be combined to provide a range of critical infrastructure for token ecosystems of all sizes: {% embed url="" %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://bonding-curve-research-group.gitbook.io/bonding-curve-research-group-library/differentiating-primary-and-secondary-amms.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.