Token & LP Lock
There are differences in how LBPs are conducted in V2 vs V1 that users should understand before joining an LBP.
Last updated
There are differences in how LBPs are conducted in V2 vs V1 that users should understand before joining an LBP.
Last updated
Token Locking and Distribution in LBPs:
When you participate in a V2 LBP, you trade a representation of the actual tokens, ensuring constant liquidity throughout the event. At the end of the LBP, you must redeem to receive the actual tokens into your wallet.
Enhanced Trust: Locking tokens instills participant confidence by ensuring liquidity is stable and available throughout the LBP, leading to a more reliable trading experience.
Exclusive Trading Window: The locked tokens maintain the LBP's exclusivity, preventing early withdrawals or external liquidity setups, which could affect the event's integrity.
Seamless Feature Integration: The lock-in supports Fjord V2's innovative features like token vesting, facilitating a seamless experience with these advanced options.
Strategic Participation: The model allows for participation in advanced funding rounds, offering the opportunity to engage with tokens in a strategic and potentially beneficial manner similar to later-stage investment rounds.
Redeeming Your Tokens Post-LBP
At the end of the LBP, you are required to redeem your tokens. Executing the redeem function will transfer the actual tokens to your wallet. In the case of vested tokens, a link to Sablier will be provided to view your vesting stream, as demonstrated in the interface.
Closing the LBP
While participants can initiate the closing of the pool, this is typically performed by the LBP creator. In most instances, you'll find that the pool has already been closed for you, and you can proceed directly to redeem your tokens.
