LBP Participation Guide and LBP Protocol Token Potential

Written by: Sleeping in the Rain

Fjord Foundry NativeToken $FJO LBP was successfully completed on the 19th. The closing price of $FJO LBP was 1.91U, raising a total of 15.35M funds. The current price of $FJO is around 2.79U.

I'd like to take advantage of this trend and talk about my experience with Fjord Foundry. TokenThe potential of LBP and my opinion on LBP (by the way, let’s talk about another LBP protocol)

Let's dive in together ⬇️

1. What is LBP?

LBP is the abbreviation of Liquidity Bootstrapping Pool, which is similar to the Dutch Auction. Fjord Foundry is an LBP platform.

简单理解，就是在 LBP 开始前，参与 LBP 的项目方会确定两件事情：1）发行Token的数量；2）LP 中代币和另一种资产（一般是 ETH 或 稳定币）的比例，比如 99% 的代币和 1% 的稳定币。

After LBP starts, based on the dynamic pricing of this model, the price continues to drop (the supply of tokens increases). When it reaches the user's psychological price, the user can buy it. After it goes up (for example, more users buy at a certain node, and demand > supply), the user can also sell it.

After the end, the project owner will generally use part of the proceeds from the token sale to add a pool on the DEX.

2. Advantages and some uncertainties

For users, the advantage of LBP is fairness. In the absence of whitelists and scientists, users can buy tokens at a psychological price.

For project parties, they can participate in the start-up funds obtained by LBP with a low threshold and use it to guide liquidity.

So, what is uncertainty?

First, I personally think that the LBP model requires some knowledge from the user. Users need to do research before participating in LBP so that they can buy tokens in a reasonable range. If they do not do research, it is easy for users to lose money in LBP.

1intro's LBP is a good example. Due to lack of understanding of the 1intro protocol and the LBP model, many users bought 1intro tokens when LBP just started (I remember the valuation was 1 billion when it was first launched), resulting in losses.

Second, in order to promote token sales, the protocol may announce some favorable information during the LBP period, such as users who buy tokens during the LBP period and do not sell them can get some additional benefits. Therefore, users should always pay attention to the project.Community + SocietyXiaobai NavigationIf there is good news, you can make a profit by buying it at the first opportunity and then selling it (1intro is also an example in this regard).

Third, if the project owner’s own pattern is not good enough, it will also affect the token price. For example, after the opening, the project owner adds too little liquidity, etc. The current pool size of $FJO is 5.8M, which is OK.

3. Fjord Foundry Token Economic Model and Protocol Data

The total amount of $FJO is 100 million.

The distribution is as follows ⬇️ The initial circulation is about 10.65% (calculated by myself, welcome to correct), the Seed financing price is 0.2 - seed round participants can make a profit by selling directly.

Token Utility ⬇️

Users can stake $FJO to obtain part of the tokens repurchased by the protocol with revenue, and $FJO Stakers will also have the opportunity to obtain potential project airdrops.

Protocol data ⬇️

The total fee income is 28M.

Since the launch of v2 in December, Fjord's protocol revenue is 10M. The protocol's annualized revenue (forecast) this year should be about 30M.

Conclusion

With the bull market trend confirmed, many developers will hope to get a piece of the pie in this cycle. Therefore, Fjord's potential revenue opportunities are quite sufficient. In the future, Fjord will also expand to other chains (such as Solana, Berachain, Fantom), and the deployment of new chains will also be a catalyst for Fjord's revenue growth.

The Fjord token cycle is to repurchase and destroy $FJO through the protocol income of at least 90%. Therefore, the ultimate essential logic is that the higher the Fjord protocol income, the better the price performance of $FJO.

The article comes from the Internet:LBP Participation Guide and LBP Protocol Token Potential

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