Comdex Liquidity Bootstrapping Pool (LBP)

What is LBP?

LBP is a DeFi liquidity solution. It is a method DeFi projects employ in listing their tokens in liquidity pools. It ensures a smoother path to price discovery with no incentives for whales to overly impact the market and cause price volatility and it’s also a mechanism that when adopted stops greedy project owners from benefitting from a rug pull.
In an LBP, the project offering the token lists a pool with a predetermined maximum price. For instance, the ratio of the project token to the other token in the pool could be 80:20 at listing which will decline gradually until the both tokens in the pool are of equal value. In other words, the pool is listed at a predefined price and is programmed to decline over a period of time say sux months, allowing investors an opportunity to choose a fair price which they consider appropriate for entry making it possible for a larger community to get into a new project and also give the project ample time to actually develop their products while still maintaining price stability. The LBP is ideal for new projects that are trying to gain traction as it represents a form of safeguard for new projects and also helps preserve their reputation while they gradually introduce traders to their new tokens.



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