What is Liquidity Bootstrapping Pool?

A Liquidity Bootstrapping Pool (LBP) is a strategic mechanism employed by Nexus to kickstart liquidity for newly launched tokens or projects in the DeFi space. Nexus utilizes LBPs to distribute tokens fairly and transparently to the market while establishing the initial liquidity. Through a predefined price curve, participants can gradually purchase tokens from the pool, providing liquidity as they do so. This approach ensures a level playing field for all participants and promotes a stable environment for trading the newly launched token on decentralized exchanges. In essence, Nexus's Liquidity Bootstrapping Pools serve as a cornerstone for equitable token distribution and liquidity provision within the DeFi ecosystem.