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. Participant

Liquidity Lock

Token Locking and Distribution in LBPs

During a Nexus LBP, participants trade a representation (virtual version) of the genuine tokens, maintaining continuous liquidity throughout the event. Following the LBP's conclusion, participants need to redeem to obtain the actual tokens into their wallet.

Benefits

Enhanced Confidence: By locking tokens, participants can trust in the stability and accessibility of liquidity throughout the LBP, resulting in a more dependable trading environment.

Exclusive Trading Environment: The locked tokens preserve the exclusivity of the LBP, preventing premature withdrawals or external liquidity setups that may compromise the event's integrity.

Smooth Integration of Features: Token locking supports the seamless integration of Nexus V2's innovative features, such as token vesting, ensuring a streamlined experience with these advanced options.

Strategic Engagement: This model enables participation in advanced funding rounds, allowing users to strategically engage with tokens in a manner akin to later-stage investment rounds, potentially yielding significant benefits.

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Last updated 1 year ago