LBP Payoff Analysis
An LBP (Liquidity Bootstrapping Pool) allows the community to participate in the project’s TGE, contributing to the liquidity needed for the token to be traded on-chain. As a result, the token is also automatically listed on the SwissBorg App.
Since one size does not fit all, each LBP will offer different investment terms. Here is a list of potential terms:
Investment Currency:
$BORG
$BORG
Asset Receive:
$Token
Between 50% to 100% of LP $Token/$BORG
Locking Period:
Up to 18 months
Up to 18 months
Reward:
Receive a Share of the LP $Token/$BORG if the $Token failed to match KPIs
APY(%) in $Token distributed over time
LBP $Token/$BORG:
Up to 50% Burned
Between 0 to 50% return to the project or Burned
As a reference, you can see the theoretical payoff matrix based on different token incentive rewards for a $1,000 investment in $Token (the token of the project that TGE through the BorgPad LBP).
https://swissborg.com/blog/become-market-maker-with-agora-alpha
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