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      • How to Participate in a LBP
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    • General FAQ
      • Fixed Price Sale FAQ
      • LBP FAQ
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  • for sale creators
    • Token Sale Types
      • Fixed Price Sale
      • Liquidity Bootstrapping Pools (LBPs)
      • Tiered Sales
    • Fjord Features
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      • Token Vesting
      • Buy Only LBPs
      • Zero Liquidity LBPs
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    • How to Create a Sale
      • How to Create an LBP
      • How to Create a Fixed Price Sale
      • How to Create a Tiered Sale
      • Token Addresses
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      • LBP FAQ
      • Tiered Sale FAQ
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  1. for sale creators
  2. FAQs - Creators

LBP FAQ

LBP specific FAQ

How do LBPs work?

Liquidity Bootstrapping Pools (LBPs) are dynamic pricing mechanisms that help projects discover a market-driven token price. The price typically starts high and gradually decreases over time based on weight shifts between the project token and a paired collateral (usually USDC or WETH). However, if demand is high, early buys can increase the price temporarily.

This design discourages bot sniping at the start of the sale and enables true price discovery through user participation over time.


What are weights in relation to LBPs?

Weights determine the price movement in an LBP. A higher weight for the project token (e.g. 99/1) means a high initial price. As the LBP progresses, the weights shift—commonly toward something like 1/99—causing the price to decline if no one is buying.

The change in weights is what drives the price curve and enables a market-driven sale.


What should the start and end weights be?

We recommend:

  • Start weight: 99/1 (99% token, 1% collateral)

  • End weight: 1/99 (1% token, 99% collateral)

This structure starts your token at ~8x the intended market price, deters bots, allows for true price discovery, and enables 100% token distribution (nuance applies).

If your goal is to sell fewer tokens at higher prices, you can end with token-heavy weightings like 70/30 or 60/40, though this limits distribution.

As a rough guide:

  • 99/1 → 1/99 → ~100% sold

  • 99/1 → 10/90 → ~90% sold

  • 99/1 → 25/75 → ~75% sold

These are just benchmarks—results vary based on demand.


What should I set as the starting price?

The starting price should typically be 6–8x higher than your expected fair market value. This pricing is not fixed directly but is derived from your chosen weights and collateral ratio.

For example: If you believe your token should be worth $1, the LBP starting price may be configured to open at $6–8 using a 99/1 weight.

This discourages bots and encourages real participants to wait for a price they consider fair.


Do I need to provide initial liquidity?

No. Fjord supports zero liquidity LBPs, meaning you don’t need to deposit real collateral at the beginning. Instead, you define a virtual collateral amount (synthetic liquidity), which is used to generate the price curve.

The first real participant deposit merges into the pool and activates the pricing mechanism.


Can participants both buy and sell tokens during an LBP?

That depends on your configuration. You can choose between:

  • Buy and sell LBPs (most common)

This is set during the sale setup process and shown clearly on the public interface.


Are there hard caps or wallet limits?

LBPs do not support wallet limits, but you can optionally set a hard cap for the sale. Once this cap is reached, no further purchases will be accepted.


Can I change the token weights during the LBP?

No. Token weights cannot be changed after the LBP has started. You must finalize your configuration prior to launch.


Can I change any parameters after the LBP starts?

During the LBP, the following actions are available:

  • Pause or resume swaps (temporarily stopping new participation)

  • Hide the sale from the public interface

  • Withdraw raised funds (after the LBP ends)

Token weights and pricing parameters cannot be altered during the event.


Can you share some examples of past LBPs?

Autonolas ($OLAS)

  • Weights: 99/1 → 2/98

  • Initial Liquidity: $50k

  • Funds Raised: $550k

  • Tokens Sold: 99%

  • FDV: $39M

Altitude ($ALTD)

  • Weights: 99/1 → 70/30 (with a hard price floor)

  • Initial Liquidity: $30k

  • Funds Raised: $3m

  • Tokens Sold: 30% of available tokens

  • FDV: $30M

These examples show how project demand, token availability, and weight configuration can all significantly affect outcomes.


What happens after the LBP ends?

Once the LBP ends:

  • Tokens can be claimed by participants

  • Collateral is sent to your wallet (minus the 5% Fjord fee)

  • You can optionally enable a claim delay to allow time for LP setup


How long should an LBP run?

Most LBPs on Fjord run between 2–5 days. Shorter sales create urgency; longer sales give more time for natural price discovery. If you’re unsure, 3 is a good middle ground.


Can I change weights or parameters mid-sale?

No. Token weights and pricing mechanics cannot be changed once the LBP has started. You can:

  • Pause or resume swapping

  • Hide the sale from public view

  • Withdraw funds (after the LBP ends)

For best results, always test your configuration on Sepolia first.

PreviousFixed Price Sale FAQNextTiered Sale FAQ

Last updated 1 month ago

We recommend testing on Sepolia testnet to ensure your setup behaves as expected.

Here are several notable examples and their configurations. Check the for more examples of LBPs.

More on Zero Liquidity LBPs →
Buy-only LBPs
More on Min and Max Raise →
Run a test LBP →
Fjord app
More on claiming →
Test an LBP →