🛠️| Explanation of LBPs

Understanding Liquidity Bootstrapping Pools (LBPs) At the Aurora Foundation, we utilize Liquidity Bootstrapping Pools (LBPs) as a key tool in our approach to decentralized finance. LBPs are a type of liquidity pool designed to facilitate fair and accessible token launches for blockchain projects.

How LBPs Work The primary function of an LBP is to dynamically adjust the ratio of two different tokens within a pool. This contrasts with traditional liquidity pools, which typically maintain a fixed 50:50 ratio. In an LBP, the weight of the new project's token and a secondary asset (usually a stablecoin) is adjusted over time. This mechanism allows for a controlled and gradual price discovery process.

Benefits of LBPs for Token Launches LBPs offer several advantages in token launches:

• Fairness and Accessibility: By reducing the influence of large-scale investors and bots, LBPs create a more level playing field for all participants.

• Market Integrity Protection: LBPs help in safeguarding new projects from market manipulation tactics like rug pulls, enhancing the project's reputation.

• Controlled Price Discovery: The adjustable weight mechanism in LBPs allows for a gradual decrease in token price, giving participants time to engage at a price they find reasonable.

Aurora's Implementation of LBPs At Aurora, we integrate LBPs into our strategy to support blockchain projects in achieving successful token launches. Our approach emphasizes:

• Transparency and Equity: We ensure that the process is transparent and equitable, allowing participants from different financial backgrounds to partake in the launches.

• Supportive Environment: By providing a stable and fair platform for price discovery, we encourage a healthy and supportive environment for both project developers and investors.