Liquidity Bootstrapping Pools (LBPs)
Last updated
Last updated
What are LBPs?
Liquidity Bootstrapping Pools (LBPs) are an innovative method for token distribution and price discovery for projects that wish to launch their token. Unlike traditional token sales, LBPs start with a higher initial price that gradually decreases over time, allowing participants to buy tokens when they believe the price is fair. This unique approach discourages early speculation, promotes a wide token distribution and builds an engaged community.
How MonadStarter LBPs Work:
Dynamic Pricing: The pool starts with a higher initial price that gradually decreases over time, discouraging early speculation and whale manipulation.
Adjustable Weights: Project teams can set and adjust token pair weights throughout the LBP duration for optimal price discovery.
Customizable Duration: Flexible pool duration, typically ranging from 24 to 72 hours, allowing projects to find their ideal market price.
Automated Market Making: Continuous liquidity provision throughout the LBP ensures smooth trading and price discovery.
Key Benefits:
Fair Distribution: Encourages wider participation and prevents large buyers from dominating the initial token supply.
Fair Pricing: The price is set high initially, and with progression it decreases due to changing weight ratios in the liquidity pool. Users can participate when they feel the price is fair.
Organic Price Discovery: Allows the market to naturally determine a fair token price without artificial constraints.
Lower Initial Capital Requirements: Projects can launch with smaller capital pools compared to traditional liquidity provision methods.
Participation Process in LBPs:
Connect your wallet to the MonadStarter platform.
Browse ongoing and upcoming LBPs.
Participate by swapping tokens during the LBP duration.
Monitor real-time price and pool weight changes.
Claim your tokens once the LBP concludes.
More information for project teams regarding LBPs to be out later.
