> For the complete documentation index, see [llms.txt](https://docs.neptun.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.neptun.finance/about-lbp/what-are-lbps.md).

# What are LBPs?

**What are LBPs?**

Liquidity Bootstrapping Pools (LBPs) are a unique token distribution mechanism designed to create a fair and decentralized market for new projects. Unlike traditional fundraising models, LBPs dynamically adjust token prices based on supply and demand during the sale period. This ensures that early investors are not disproportionately rewarded and that the token price stabilises closer to its true market value as more participants join the sale.

In an LBP, a project typically starts with a higher token price that gradually decreases over time unless there's significant buying interest, which can push the price back up. This model helps prevent bots and large investors from unfairly influencing the price and allows for a more equitable distribution of tokens among participants.

LBPs are particularly beneficial for projects looking to raise funds while establishing initial liquidity in a transparent and decentralised manner. They help align the interests of the project and the community, ensuring that token distribution is conducted fairly and efficiently.


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