What is an LBP?

A Liquidity Bootstrapping Pool is a method for launching a token that aims to be fair and transparent for all participants. It uses a pricing mechanism similar to a Dutch Auction, where the price starts high and decreases gradually using dynamic weights. This helps prevent bots and well capitalized investors from accumulating a large percentage of the supply early. LBPs allow participants to discover market price collectively and buy at a fair value.

The open source contracts for LBPs were developed by Balancer and popularized by launchpad Fjord Foundry.

The GammaSwap LBP

The LBP will be self hosted using open source Balancer contracts, it will not be hosted on a launchpad. 

Here are some of the key parameters and event details:

• Length: 3 days
• Start Date: August 30th, 1pm UTC
• Starting Price (FDV): $.04375 (70M, 3.5M MCAP)
• Starting Weights: 98% GS, 2% WETH
• Ending Weights: 20% GS, 80% WETH
• Starting Amounts: 105,000,000 GS and $100k in WETH
• Chain: Arbitrum
• Swap Fees: 1%

There will be no vesting for $GS tokens received from interacting with the LBP. There is also no whitelist. You can use ETH, WETH or USDC to swap in the LBP.

Although the starting price may seem high, this is intentional to make sniping the launch difficult. The price will gradually decay, depending on swap volume, until it finds a market clearing price. The price in the LBP can go as low as $.009275 (15M FDV, <1M MCAP) if there is no swap activity at all.

How to Participate?

Step 1 - Set Up & Fund Wallet

To set up a wallet, install a browser based wallet like MetaMask or Rabby. Once you have clicked the download button on the Chrome or Google play store, the wallet will begin installing. Follow the prompts to ensure you have correctly set up the wallet.

To fund the wallet, bridge funds or send them via a centralized exchange to the Arbitrum Network. Acceptable funding tokens are USDC, WETH or ETH.

Step 2 - Connect Wallet

Once your wallet is set up and funded, navigate to the LBP site and press the "Connect Wallet" button in the top right. Choose your wallet provider and confirm the connection.

Once connected, the UI will show you are connected because instead of the "Connect Wallet" option you will see the ETH you own and your wallet address.

Step 3 - Buy into LBP

Once you have determined how much you would like to buy based on the price, simply add the USDC or ETH amount in the input box and see your output in GS. You can also see the dollar amount of GS you will receive after the swap and the price impact (by clicking dropdown).

Make sure the price impact is lower than your slippage tolerance for the trade to successfully execute!

Now "Approve" and "Confirm" the swap.

Step 4- Completed!

Congratulations you now successfully are a $GS token holder. If you can't immediately see the tokens in your wallet, you can add the token manually by wallet address. Guide from Metamask here.

Once the LBP is complete, you can use your GS to provide liquidity or stake for protocol revenue + esGS rewards.

What will the funds be used for?

Around 500k will be used to fund a DeltaSwap GS/WETH pool and the rest will be used to provide liquidity into existing GammaSwap pools.