Liquidity Bootstrapping Pools (LBPs)
A capital-efficient and decentralized approach to fair token distribution.
What Are LBPs?
Liquidity Bootstrapping Pools (LBPs) are designed to ensure fair and efficient token distribution without requiring projects to lock excessive capital upfront.
This model prevents bot manipulation, whale dominance, and early price spikes, making token launches more equitable.
How Do LBPs Work?
High Initial Price – The sale starts at a high price, discouraging bots and large early buyers from unfair advantages.
Gradual Price Reduction – The price continuously decreases as the liquidity pool's weight ratio adjusts over time.
Flexible Participation – Investors can enter at any point when they believe the price is fair.
Market-Driven Equilibrium – Demand naturally stabilizes the price, ensuring fair price discovery and decentralized distribution.
Why Choose LBPs?
Fair Price Discovery – Prices adjust dynamically, ensuring tokens reach their true market value.
Prevents Market Manipulation – Stops bots and large investors from gaining an unfair advantage.
Flexible Entry for Investors – Participants buy when they feel the price is right.
Decentralized Token Distribution – Encourages broader ownership instead of concentrating tokens in a few hands.
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