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  1. Home
  2. /Glossary
  3. /Liquidity Bootstrapping Pool (LBP)
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defi

Liquidity Bootstrapping Pool (LBP)

A Dutch auction-style token launch mechanism where the price starts high and gradually decreases.

Definition

A Dutch auction-style token launch mechanism where the price starts high and gradually decreases. This discourages bots and whales from sniping all tokens at launch because the price is designed to fall. Copper Launch and Fjord Foundry are platforms that offer LBP launches for new projects.

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Related Terms

Dutch Auction

A sale where the price starts high and gradually decreases until someone buys.

Liquidity Pool

A pool of tokens locked in a smart contract that enables decentralized trading.

Fair Launch

A token launch where everyone has equal opportunity to buy, with no pre-mine, team allocation, or insider advantages.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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