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:

	Option 1	Option 2
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