Buy Only LBPs

Learn about how Buy Only LBPs work and how to set one up for your Liquidity Bootstrapping Event.

About Buy Only LBPs

The traditional model of LBPs has always centred on both buying and selling. We're excited to introduce a new approach — Buy Only LBPs. This innovative twist on LBPs is designed to reduce potential sell pressure and innovate on top of LBPs to be more in line with traditional bootstrapping methods where there is typically only buying.

They also present an opportunity for projects to divest token assets that are already on the market in a manner that's streamlined and project-friendly.

Buy Only LBPs maintain the dynamic and effective price discovery mechanism inherent to LBPs. The decaying price curve continues to operate under this model, offering a downward price trajectory that is determined by the initial settings you choose for your LBP. The same strategic considerations apply — your chosen weightings and token distribution parameters will influence the LBP's price movement, just without the option for immediate selling within the pool.

How To Create a Buy Only LBP

The process for setting up a Buy Only LBP is straightforward and integrated into the second step of the LBP creation process. Here's how you can configure your LBP to be Buy Only:

Step 2: Sale Structure Configuration

  1. Navigate to Sale Structure: During the creation of your LBP, step 2 will focus on the sale structure of your pool.

  2. Choose LBP Type: You will encounter an option asking you to specify the type of LBP you wish to set up. The options will be 'Buy Only' or 'Buy and Sell'.

  3. Select 'Buy Only': To proceed with a Buy Only LBP, simply select 'Buy Only'. This will configure your LBP to allow purchases of your token without the option to sell back into the pool during the LBP duration.

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