Sonic - Liquidity Bootstrapping Pool

[memecake]

Sonic is gearing up to launch a new LBP for the ICP community on Sonic DEX! This development is a testament to the transformative power of DeFi. It’s about more than just finance — it’s about building communities, promoting fair access, and disrupting traditional norms. By creating a fair and transparent mechanism to distribute tokens, we are embracing the ethos of the DeFi movement, striving to create a decentralized world that is accessible and beneficial for all.

Whether you’re new to DeFi or a seasoned expert, the world of Liquidity Bootstrapping Pools offers opportunities to participate in a financial revolution. Here’s to a fairer, more transparent, and more exciting world of finance!

What is a Liquidity Bootstrapping Pool (LBP)?

Liquidity Bootstrapping Pool, or LBP, is a concept introduced by Balancer, a protocol for programmable liquidity in the decentralized finance space. In non-technical terms, LBPs are a mechanism to launch a new token in the market in a fair, transparent, and efficient manner.

Imagine launching a new product in a supermarket. You’d want people to have access to it at a fair price, and for those who really want the product, they can buy more, albeit at a slightly higher price. LBP functions in a similar way. It helps distribute a new token to those who want it at a fair price, and as more people buy the token, its price increases.

How does an LBP work?

LBPs work like automated market makers. Think of AMMs as invisible market sellers, operating 24/7, adjusting prices based on supply and demand.

Suppose you have a new token; let’s call it the ‘SONICX’ token. You can launch it in an LBP, along with a more established token, say ICP. Now, you’ve essentially created a ‘SONICX-ICP’ pool. The initial ratio and the amount of SONICX and ICP in the pool are something you can set.

When people start buying the SONICX token, they pay with ICP. As more SONICX tokens are bought, fewer are left in the pool, and so the price of each remaining SONICX token rises. This continues until the sale is over or all SONICX tokens are bought. In essence, this means the more popular your SONICX token is, the higher its price goes, making it an efficient and fair way to launch a new token.

Why are LBPs Important?

LBPs have two key advantages:

1. Fair Distribution: LBPs ensure that the tokens are sold at a price determined by the market, which reduces the chances of people manipulating the price to their advantage.
2. Price Discovery: LBPs help find the ‘real’ value of a new token based on how much people are willing to pay for it. This price discovery process is transparent and efficient, ensuring the new token finds its place in the market fairly.

The Limitations of Traditional Crowdfunding

Platforms like Funded have brought crowdfunding to the forefront, allowing users to support projects they believe in. However, this method isn’t devoid of downsides. Investors in such platforms often have to hold onto their illiquid NFTs until the respective project reaches its Service Nervous System (SNS) stage. This is assuming the project reaches this phase, as some don’t ever achieve their milestones, leaving users with non-tradable assets.

Our LBP model aims to redefine this scenario. Sonic LBP provides users with an unparalleled opportunity to achieve liquidity immediately after the LBP ends. As soon as the LBP concludes, SonicX token holders can trade their tokens. This mechanism empowers our users, giving them the freedom to buy or sell tokens based on their investment strategies and market movements.

We are preparing to launch our pre-SNS token launch, SonicX, using a Liquidity Bootstrapping Pool (LBP), taking the first step towards transforming Sonic into a Decentralized Autonomous Organization and making a few strategic partnerships to ensure a seamless and secure experience for our users.

As we march towards our goal of being a Decentralized Autonomous Organization, we believe in the strength of our community. It is the support and trust of our community that fuels our growth.

Let’s harness the power of decentralization together. Join us in our SonicX token LBP sale and be a part of the Sonic revolution!

[charm]

love Liquidity Bootstrapping Pool

[anon98653474]

Friendly reminder that Sonic is a scam

People click swap and ended with less than 10% of the token they agreed to get

Just need to look at the trading history, how they manipulate the pool size to scam people.

Nicolas.ic

[memecake]

Thank you for your comment. This highlights the importance of understanding how LBP works within DeFi. Perhaps the person who posted this needs to do more research on the topic.

At 2:00 PM, an individual purchased ELNA and was awarded 790 tokens. Shortly after the purchase, the price of ELNA rose sharply and at 2:01, numerous wallets sold ELNA. Subsequently, someone purchased the tokens at a lower price and received 2.11K ELNA tokens.

Posting claims of scam without understanding DeFi is harmful.

[anon98653474]

@memecake

and

A swap on Binance lock the found and you swap what you ask for.

Here you pretend the slippage of a few % while its DIVIDED BY TEN !! Maybe you even automatised some insider trade before someone buy so that you steal their funds. In this example we can see that a minutes didnt even pass and the price went again down by a factor of 3 !!

Here several user were scammed and you pretend nothing happened ? Perhaps you should learn how safe swaping works, do you need that binance teaches you ? Now it seems you are trying to “decentralise” the responsability to keep your scamming platform online.

No surprise you did not do audit during you previous SNS.

Message to all fair builder, avoid this platform.

[memecake]

Here is the best way for you to learn more about LBP

Liquidity Bootstrapping Pools (LBPs) | Balancer

[anon98653474]

Here is the best way to read what kind of false promise you make for users

Scammer

[aiv]

Literally every LBP dapp has that warning, even uniswap has slippage warnings.

If you don’t understand something, don’t use experimental defi products.

#1 rule of crypto is Do Your Own Research.

If someone was scamming you, they’d have all your tokens, you’d have nothing in return, and you wouldn’t have the ability to bash them in the forum because they would have disappeared.

You got less tokens than you expected because you acted out of ignorance. That’s not a scam it’s just inaccurate expectations.

[anon98653474]

@aiv

, they’d have all your tokens, you’d have nothing in return, and you wouldn’t have the ability to bash them in the forum because they would have disappeared.

Someone can steal your wallet and take only half the money, thats still a theft.

Someone druging people to help other people steal the drugged peoples wallet are also responsible even if they dont steal directly.

Your platform state a price when you swap and people can find themself with 10% of the amount, thats 90% steal. This is a scam.

Any normal platform would not let user get so little of what the clicked, the swap would just not occure OR a confirmation of the price would happen before the transfer occures with locked item. This is not what you platform does, so its a scam.

Cheers