A Liquidity Bootstrapping Pool (LBP) is a type of liquidity pool designed to help new tokens launch and gain traction. It allows users to trade a newly issued token against a more established asset, often over a gradual price adjustment.In an LBP, the weight of the newly launched token starts low, making it inexpensive to buy initially. As time progresses, the weight of the established asset increases, causing the price of the new token to rise. This gradual price increase helps establish a fair market value based on demand.LBPs are particularly useful for reducing the impact of large trades or “whales” that could destabilize the token’s price early on. By carefully controlling the price dynamics, LBPs encourage more participants to join and help ensure that any price discovery process is smooth.Overall, Liquidity Bootstrapping Pools offer a novel way to launch tokens while fostering community involvement and price stability.