# 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.

<figure><img src="/files/rDpmeeZzG1LLW7IsnVkj" alt=""><figcaption></figcaption></figure>

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).

<figure><img src="/files/EvA3PVXguLSePXrDTl6O" alt=""><figcaption></figcaption></figure>

<https://swissborg.com/blog/become-market-maker-with-agora-alpha>


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