What is balancer & liquidity bootstrapping pool (LBP)?

Balancer is a decentralized exchange (DEX) that mainly provides two services, decentralized trading and liquidity pools. The Liquidity Bootstrapping Pool (LBP) occupies a special place among the latter asit allows platforms to issue tokens. It is a tool designed for crypto projects to generate liquidity from a small amount of seed capital.

What is a load balancing pool?

A load balancing pool is a logical set of devices, such as web servers, that you group together to receive and process traffic. Approximate time: 15 mins

How does balancer LBP work?

There is no fixed rule when it comes to price action. However, in the Balancer LBP model, the token of the platform raising funds usually starts with a higher price, and over time, it gradually drops because of the change of the weights between the two assets.

What is balancer protocol?

Balancer is an open-source protocol, automated portfolio manager, and liquidity provider. Built on the Ethereum blockchain, Balancer offers new solutions to the problems present on traditional and centralized exchanges. Designed for ease of use, Balancer Protocol allows for trustless and permissionless trading of ERC-20 tokens. What is a LBP?