Create LBP pool
Set parameters and release the LBP on market.
Price discovery
Market will trade the project token against the collateral choice, until a fair price is discovered.
Claim funds
Claim XYZ and raise funds.
How LBP Math Works
Liquidity Bootstrapping Pools use Weighted Math with time-dependent weights. The pool starts with high weights for the project token (e.g., 80/20) and linearly shifts to low weights (e.g., 20/80) over the sale period.
where V = invariant value
Bt = balance of token t
Wt = weight of token t
The price is determined by the constant product formula: Price = (Balance₁ × Weight₂) / (Balance₂ × Weight₁)
As weights shift over time, the price naturally decreases, creating sell pressure on the project token. This mechanism allows the market to discover a fair price through trading activity, rather than setting a fixed price upfront.
Learn more about LBPs on Balancer Documentation