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
Powered by GitBook
On this page
  1. Roles and Responsibilities
  2. Participant

Rewards and Risks

Rewards

  • 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.

Risks

  • Market Volatility: The token prices in an LBP can be volatile, especially if the broader market conditions are unstable.

  • Unpredictable Pricing: While the descending price auction intends to find a fair price, there's always a risk that participants could pay higher prices if they purchase early in the process.

Project Viability: There is a risk associated with the fundamental success of the project issuing the tokens, which can affect the long-term value of the tokens purchased.

PreviousToken VestingNextDo's and Don'ts for LBP Participants