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Cosmos
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Comdex- LBP explained for Osmosis Launch

Hello COMets!

It’s been an exciting few months with all the updates and milestones we’ve achieved at Comdex. A big part of being able to achieve the things we have has been the support of the community of COMets! This was especially evident with the overwhelming response we saw with our Launch Party on 20th Nov, 2021.

For those of you who missed it, you can catch a recording of the event here.

We recently announced the upcoming liquidity bootstrapping pool on Osmosis, and as we gear up for announcements on the exact details, we noticed that some of you in the community had questions about what an LBP is and how you can participate. So, outlined below is an explanation of what LBPs are.

What is an LBP

The LBP is a revolutionary method for projects like ours to gain initial investment into a new crypto project. Simply put, in an LBP the project provides liquidity to a specialized pool on a DEX (in our case Osmosis). Anyone who wants to participate, can participate, regardless of portfolio size. There are also several other advantages in terms of security & price discovery which we discuss below.

During an LBP, the project that is offering the tokens lists a pool with weightage based on a predefined maximum price. The initial $CMDX price discovery on Osmosis will be held as a variation of a reverse dutch auction. From a buyer’s standpoint, this means that the pool will be listed with a maximum auction price, which will decline gradually over a defined period of time until the pool balances of both tokens are of equal value. This mechanism makes it essentially impossible for large token holders to try to corner the market and dump their tokens later. At Comdex, we consider this approach the best mechanism for achieving fair price discovery and broad token distribution. Whilst preventing malicious action by bots or whales

How do LBPs work?

As mentioned above, the initial price discovery of assets on Osmosis ...

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