LBP's for Token Launches
Beethoven X offers protocols the possibility to launch a token using Balancer's Liquidity Boot Strapping Pool (LBP) approach in a liquidity generation event. Launching a token via the LBP, the price will start high to disincentivize bots, front-running and speculation. Thanks to the LBP design the price can automatically decrease over the duration of the liquidity generation event. In a LBP, the launch token and the collateral token weighting within the pool is designed to change (for example from 95-5 to 50-50) thus ensuring the price decrease and the amplification of the starting capital. The creation of a LBP is easy and completely permissionless, meaning anyone can set up a token launch using the UI on Beethoven X and interacting directly with the underlying contracts. The LBP on Beethoven X is based on the contracts created by Balancer Labs.
Key Characteristics of fairer Launch Auctions using the LBP:
- Price Discovery - In the LBP the price starts high and follows a preconfigured price decay curve over the duration of the liquidity generation event. The price decay can be offset by buying pressure at any stage of the LBP.
- The LBP is permissionless - Anyone can freely launch tokens and any user can participate in liquidity generation events. There are no listing requirements or whitelists.
- Fair Token Launch - In a liquidity generation event via the LBP, it is not a race to be the first in order to battle bots or high gas fees to get your transaction through. Anyone can buy into or sell out of the LBP Pool without limitations at any point during the LGE. This makes price discovery a self regulatory process and the token launch a much fairer distribution event.
- Capital Efficiency - Setting the weights allows the initial price of the token to be magnified by a factor of up to 99 in relation to the initial collateral deposited with it. The initial collateral can be withdrawn in full (provided the launch token does not previously exist outside the LBP, enabling someone to sell into the pool).
WARNING: Participate at your own risk!
- Note that participating in a LBP event, like any other token offering, always carries inherent risk and your investment may go to 0. Beethoven X is not liable for any losses incurred through the use of the Beethoven X platform.
- The LBP is permissionless and runs on the Fantom Opera Network. Beethoven X merely offers a window to the network and a way to launch tokens in this manner. Beethoven X and it's community therefore takes no responsibility in regard to the projects, protocols and teams utilizing the LBP for their liquidity generation event enabled by Beethoven X.