Liquidity Bootstrapping Pools (LBPs) - For LBP Hosts
LIQUIDITY BOOTSTRAPPING POOLS - FOR LBP PARTICIPANTS
Kovan Testnet
Copper Links
Alchemist Incubator
FAQs
Frequently Asked Questions for users of Copper participating in Liquidity Bootstrapping Pool
Can I buy and sell into a LBP?
Yes you can buy and sell into Copper LBPs. We provide an open transparent environment for price discovery to take place, and part of price discovery is both buying and selling.
If a project already has tokens in circulation, they too could be sold into the LBP.
Does Copper check launches for quality?
No, we are a decentralised, permissionless, technology platform. Anyone can create an LBP for users to participate in. We do have multiple 3rd parties who are LBP curators. We encourage users to directly check with curators to understand the parameters for curation.
Can I provide liquidity on Copper projects?
No, only LBP owners can remove and add liquidity.
My transaction didn’t go through?
Your transaction could be stuck due to it being queued in your wallet or the gas settings were not high enough for it to be accepted onto the Ethereum network. To fix this use the following instructions provided from Metamask.
I can’t see the tokens in my wallet after purchasing them?
Most of the time this issue occurs, it’s because you haven’t added the token to your chosen wallet. Most tokens that launch on Copper may not automatically show in your wallet. For a token to show in your wallet, you may need to manually add the contract address.
On other occasions, it's because your transaction may have been to "approve" the token, rather than purchasing the token.
There are a few ways to get your Metamask tokens to show in your wallet. The below example is one way to do this.
Add tokens to your Metamask
To add your tokens to your Metamask wallet, open your wallet, and in the assets tab scroll to the bottom and click ‘Import Token’.
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From here, you can either manually add a token or attempt to automatically find it. To manually add a token, find out the contract address, the ticker and add the token.
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What makes Copper LBPs unique and how does it promote fairness for participants compared to other platforms?
'Short' answer: Copper launches provide an opportunity for projects to fairly distribute tokens and engage in natural price discovery.
In most instances, projects launching on Copper will begin their LBP with the project at a high market cap. Pricing the token higher discourages bots and heavy buying activity at the time the LBP begins. Over time the price decays/reduces allowing time to engage in the LBP when the token reaches a price that is more in line with realistic valuations.
In the above example, users who rushed to get the token at the start paid more than for the token than users who patiently waited for the price decay effect towards the middle and end of the LBP, which lasted 2 days in total.
This price discovery method is different to other platforms where the price and cap is pre-announced, giving time for bots to scoop up all of the supply as soon as the listing drops, leaving limited/no supply for the everyday user and in many cases the LBP ending in mere seconds.
'Long' answer: A Liquidity Bootstrapping Pool (LBP) on Copper is a unique liquidity bootstrapping method that deters sniper bots and bad actors from scooping up the supply via a high to low capital-efficient price mechanism, while effectively bootstrapping an engaged community of token owners.
It is unique because the mechanics of our platform allow the initial price of the project's token to be magnified by up to 99 times relative to the base token deposited along with it. Additionally, the base token can be fully retrieved at the end of the LBP unless the project's tokens already exist outside of the LBP and someone decides to sell into the LBP.
An example of LBP weights can be see below.
The price being ‘magnified’ is the mechanism that stops the bots. If 50 bots were to simultaneously try and scoop the supply of a token via a LBP within 10 seconds of an LBP on Copper, they may send the market cap of the sale from tens of millions to the hundreds of millions and beyond.
This is fairer for communities because it means that bots and whales are limited in their want and ability to immediately 'ape' into the sale, when compared to batch auctions, where it becomes a race and first in gets the best deal.
When should I buy into a project during a LBP?
It’s up to individuals to determine when they believe the price becomes fair and they are ready to purchase. In terms of managing the variation in weights, if a LBP has a 98% $TOKEN/2% $USDC start weight and an end weight of 98% $USDC/2% $TOKEN it means that if there are no buyers there will be a large difference between the starting price and end price and the price will drop significantly if there are no buyers.
Conversely, if a LBP has a 75% $TOKEN/25% $USDC starting weight and then a 25% $TOKEN/75% $USDC end weight, this means the difference between the starting and end price will be lower when compared to the first example if there are no new buyers.
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