What is a Liquidity Bootstrapping Pool (LBP) + Features
Learn more about Liquidity Bootstrapping Pools (LBPs) and why they are the ideal method for token distribution.
Liquidity Bootstrapping Pools (LBPs) are a specific configuration of Balancer’s Liquidity Bootstrapping Pools. Their primary use cases are to distribute digital tokens or NFTs using a fair, open and transparent price discovery mechanism using weighted liquidity pools.
Price discovery
The price of the token starts high and drops based on a pre-configured price decay curve that can be resisted by buying pressure from LBP participants. Anyone can buy into or sell out of the LBP freely at any time, so price truly regulates itself.
Open and permissionless participation
No whitelists, hard caps, or listing requirements. There is no minimum or maximum allocation. LBP participants choose how much they want to buy.
Fair distribution
LBPs flip the first-come-first-serve launch model on its head. It's no longer a race where the first bot in or the transaction with the highest gas fee wins. Get your token into the hands of as many people as possible in a fair way that disincentives front-runners and whales getting better rates than smaller participants.
Capital efficiency
The initial price of the project's token in the LBP can be magnified by up to 99 times relative to the collateral deposited along with it. Additionally, the collateral can be fully retrieved at the end of the LBP unless the project's tokens already exists outside of the LBP, in which case someone could decide to sell into the LBP.
Last modified 30d ago