Liquidity Bootstrapping Pools (LBPs) - For LBP Hosts
LIQUIDITY BOOTSTRAPPING POOLS - FOR LBP PARTICIPANTS
Kovan Testnet
Copper Links
Alchemist Incubator
LBP Participation Walkthrough
Introduction
The following documentation is to help users who are new to cryptocurrency participate in a Liquidity Bootstrapping Pool (LBP) on the Copper platform.
Copper is the most open, transparent, and user-friendly way to participate in a LBP. A LBP is a simple mechanism that enables projects and ideas from across the world to distribute value from individuals.
Any idea can now be bootstrapped by an invested community and thus established as a transparent and equitable partnership. This is the future and Copper is here to make this vision a reality by unlocking access to early stage opportunities for everyone — fairly, transparently, and equitably.
Projects may use Copper for the following reasons
- 1.Distribute tokens to a wide community of supporters by deriving value from individuals. The characteristics of our platform deters whales and sniper bots taking up all of the supply, therefore, equitably distributing tokens when compared to batch auctions.
- 2.Allow price discovery to occur for a new token by letting the market determine the token’s fair value in an open and transparent manner.
LBP Lists
Copper is a permissionless platform. That means, anyone from across the world can create an LBP on our platform without interference.
The LBPs in the “Unvetted List” are indexed directly from the blockchain and do not represent an endorsement by the Copper platform or the Alchemist community. Please note that participating in any of these LBPs is a high-risk endeavor and that the value of the tokens that you've received during a LBP might go to 0. Copper is not liable for any losses incurred by using our platform.
The other lists you will see are “Curated Lists”. These lists are LBPs which have been selected by 3rd parties for curation.
For now, we have one 3rd party curator and welcome applications for more curators. Copper doesn’t have any say over the parameters which a 3rd party uses to qualify a project for curation, but to supplement this filtering we still strongly encourage users to continue to do their own research and to understand the conditions that each curator undertakes to select the LBPs for their list.
Getting started - Fund your wallet
Step 1: Depending on what LBP you are looking to participate in you will need to hold a funding token. This is the token that will be used to buy into the token that’s being launched through the LBP. On Copper, common funding tokens are USDC, DAI, WETH (a wrapped version of ETH), and ETH. For Polygon LBPs we also support MATIC, but not DAI in addition to the funding tokens listed above.
To install Metamask, go to MetaMask.io and select from Android or iOS for mobile application and select Chrome for desktop. You can also go directly to the Chrome store, Google Play store, or Apple App Store (soon). Click the download button. For users on a desktop, you can click the download button in the main nav as per below.
Once you have installed the Metamask wallet, please ensure that you follow the prompts on the Metamask UI to correctly set up the wallet.
Step 3: Once you have installed the Metamask you will need to send the funding token required to your metamask wallet from the centralized exchange that you bought them on.
Ethereum - LBPs hosted on the Ethereum network will need to have ERC-20 funding tokens to buy into them. Please ensure that you are sending this correctly from the centralized exchange. You can then send the tokens to your Metamask Ethereum ERC-20 wallet.
Polygon - LBPs hosted on the Polygon network will need to have Polygon funding tokens sent to them. Please ensure that you are sending this correctly from the centralized exchange. In Metamask, you will need to choose the ‘Matic Network’. You can then send the tokens to your Metamask Polygon (Matic) wallet.
Step 4: Now you have your funding tokens in your wallet, you can visit the https://copperlaunch.com website, and connect your wallet. Click the “Connect Wallet” button in the top right hand of the screen and choose your wallet.
Your wallet will show it is connected once the “Connect Wallet” button in the previous section shows part of your Ethereum/Polygon address and the color turns from blue to green.
When you are connected via the Ethereum network, only LBPs on Ethereum will show on the LBP list. These can be viewed by clicking the “LBPs” button in the main navigation.
To view and participate in Polygon LBPs, click the network switch button in the main navigation and select “Polygon”. You will also need to switch networks to Polygon ‘Matic’, via your Metamask wallet.
When you are connected via the Polygon network, only LBPs on Polygon will show on the LBP list. These can be viewed by clicking the “Auctions” button in the main navigation.
Step 5: Once you have selected the LBP you wish to participate in, you will see the following screen. The contents of the screen may vary depending if the LBP is yet to start, in progress or concluded. The below example is an example of an LBP that is in progress.
LBP Research
Prior to participating we recommend researching the following before deciding to participate in a LBP.
- 1.Number of tokens in the LBP
- 2.Total number of tokens minted
- 3.Team and previous investor unlocks
- 4.Implied market cap
- 5.Reputation of the project team
- 6.Liquidity plans following the LBP (where can I trade the token and how much liquidity will there be after the LBP?)
- 7.Product positioning, will it succeed long term?
Buying strategy
The features that make Copper unique mean that the distribution is typically more equitable, open and transparent. This is due to the price decay model, where the price of the token moves from a high market cap, to a low market cap depending on the weights set up by the LBP creator. This is done to prevent bots, frontrunners, and whales from scooping up all the supply that happens on other platforms.
This also means that it is important to be wary at the beginning of the LBP, as teams will typically set a higher price at the start of the LBP to prevent sniper bots. If there are no new buyers at the higher early prices, the price then reduces over time to a more realistic market cap/price. However, during the course of the LBP buyers may step in once the price reaches a more realistic point. It is up to individuals to decide what price they think is fair based on the research they have undertaken. Like any liquid asset in crypto, prices can be volatile. Below is an example of the GRO LBP, showcasing the price action over 3 days:
Based on all of the factors you have taken into consideration and the price is at a point where you feel it is fair market value, you can begin your purchase.
Ethereum: Prior to the purchase occurring, you may need to approve the tokens via your Metamask. This can be done by clicking the “Approve Usage” button. On the Ethereum network, there is a fee associated with this. This fee can vary depending on the price of Ethereum gas at the time. At the time of writing, this fee is priced approx $25-50USD per token approval. We recommend using the Metamask recommended fee to complete your transactions.
Please note that Copper doesn’t earn anything from the fees charged by the Ethereum network and can’t control the cost of these fees.
Once the tokens have been approved your transaction will be ready to purchase, which you can do by clicking the blue button in the swap feature.
Polygon: You can follow the same process as above, however the transactions will likely cost very little (less than 1c).
Ethereum: When you make the transaction, there will be another gas transaction fee that will be required. This fee can vary depending on the price of Ethereum gas at the time. At the time of writing, this fee is priced approx $80-150USD. We recommend using the Metamask recommended speed/fee to complete your transaction.
Polygon: You can follow the same process as above, however the transactions will likely cost very little (less than 1c).
Once this swap is done, voila! You will have your tokens. If you can’t immediately see the tokens in your wallet, read on below for our FAQ as to why they may not be showing.
Last modified 4mo ago
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