LBP Parameters proposal

Summary
The proposal defines overall LBP parameters.

Definition
A liquidity bootstrapping pool is essentially a contract that manages a core pool containing tokens to be used on an exchange. LBPs are a great solution for those who want to get tokens into the hands of a user base without the limitations of a rapidly increasing price curve. LBP represents the future of fundraising for projects struggling with liquidity.

Background
LBP has a vital role to reach fair token launch and better price discovery. In order to set up LBP launch, LBP parameters must be set by GuruDAO and it will play an important role on GURU token price.

Proposal
Based previous discussions, proposals and articles on LBPs, I suggest these parameters:

• Duration: 72 hours

• Starting Price: $9.3

• Ending price: $0.83

• Blockchain: Ethereum

• Initial pooled: 10,000,000 GURU and worth ~$3,000,000 WETH

• Starting weights: GURU 95%: WETH 5%

• Ending weights: GURU 50%: WETH 50%

I suggest the starting price of $9.3 because I think ~$2.5-$3 is a fair price for GURU token sale.

Pros
• Fair Distribution
• Permissionless and open participation
• Capital Efficiency
• A great portion of tokens sold on LBP results in huge fund raisings for treasury.

Cons
• Huge amount of tokens might end up in whale’s hands after the LBP

14 Likes

Thanks that’s a good proposal, but it would be great to see some thoughts around proposed numbers, not just guesswork.

Also please check similar discussions already started:

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Screenshot_20220518-183344_Discord

From this, we want to sell about 10% of token brought about the 10,000,000 Guru and $3M as the target.
Ending price(the minimum the token can sell) always far lower than starting price. The starting price is $9.3 because it tends to drop lower because of weightings(95:5) and for equilibrium and most buyers will want to buy lower. So $9.3 means we are intending to sell a token for an average price of ~$2.5-$3.

But If you think of better prices, i can edit it ser

1 Like