Nexus Docs
  • Introduction to Nexus
    • What is Nexus?
    • Welcome Info
    • Key Features of Nexus
  • LBP Overview
    • What is Liquidity Bootstrapping Pool?
    • Mechanics of LBP
    • Nexus LBP Benefit
  • Roles and Responsibilities
    • Participant
      • How to Participate in LBP
      • Liquidity Lock
      • Token Vesting
      • Rewards and Risks
      • Do's and Don'ts for LBP Participants
    • Creator
      • Creating an LBP
      • Closing and Cancellation of LBP
      • Liquidity Lock
      • Token Vesting
      • Tips and Best Practices for LBP Creators
    • Arbiter
      • Role Overview
      • Arbitering an LBP
    • Arbitrated vs. Unarbitrated LBPs
      • For Participants
      • For Creators
      • Advantages of Arbitrated Projects
    • Referral Program
    • FAQs
  • Fee Structure
    • Platform Fee
    • Swap Fees
  • Community
    • Roadmap
    • Community and Support
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  1. Roles and Responsibilities
  2. Creator

Liquidity Lock

For creators using Nexus's Liquidity Bootstrapping Pools, a key aspect is locking tokens in the pool for the entire event. This ensures steady liquidity and a stable trading atmosphere. During the event, participants trade a virtual version of the token to maintain reliable liquidity. Once the event ends, creators execute a 'close' function on the blockchain to distribute actual tokens to participants. This step also allows withdrawing liquidity directly to the wallet used for the event, completing the distribution securely and efficiently.

Benefits:

Enhanced Participant Confidence: The token locking mechanism throughout the LBP event instills stability and reliability in liquidity, fostering greater confidence among participants in the trading process's integrity and dependability.

Preservation of LBP Exclusivity: This approach preserves the exclusivity of LBPs by preventing premature token withdrawals by participants or the establishment of their own LPs.

Support for Nexus's V2 Features: The token locking and distribution mechanism is essential to the functionality of Nexus's V2 features. It ensures the seamless integration of advanced features like token vesting, ensuring that these innovative elements operate smoothly within the LBP framework.

Flexibility for Advanced Funding Rounds: The model accommodates advanced funding strategies for tokens already present in the market, such as offering discounted vested tokens in a Series B-style LBP funding round. This introduces a strategic aspect for creators seeking to raise funds without disrupting existing market tokens.

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