Creating a LBP

The below is an example of the pool.json file for a liquidity bootstrapping pool.

A liquidity bootstrapping pool's weight begins at the weight set in the weights parameter and linearly shifts the weights until target-pool-weights is reached over a time period set by the duration parameter upon pool creation.

Typically, weights begin at an unbalanced ratio with more weight given to the token that is to be sold and shifts to a 1:1 weight (or a weight favoring the counter-party token that the pool is aiming to accrue). The changing of the weight affects the exchange price of the tokens even when the tokens within the pools remain the same. Note that linear change in weight does not mean linear change in price (it is highly recommend to play around with the various parameters on this basic LBP simulator to make sure you understand how the pool will act with different parameters and market demand).

The pool creator can designate when the weight change begins by setting the start-time. While the pool will be live and available for trade at the initial weights, pool weight shift will not begin until start-time is reached.

Example Pool Files

The following is an example of a liquidity bootstrapping pool. The weights linearly change between the initial weights provided, and the target weights over 72 hrs (3 days) If no start time is provided, it defaults to time the tx was successfully executed on chain.

The pool.json file:

{
    "weights": "10akt,1atom",
    "initial-deposit": "1000akt,100atom",
    "swap-fee": "0.001",
    "exit-fee": "0.001",
    "lbp-params": {
        "duration": "72h",
        "target-pool-weights": "1akt,1atom"
    }
}

Instead with start time included:

{
    "weights": "10akt,1atom",
    "initial-deposit": "1000akt,100atom",
    "swap-fee": "0.001",
    "exit-fee": "0.001",
    "lbp-params": {
        "duration": "72h",
        "target-pool-weights": "1akt,1atom",
        "start-time": "2006-01-02T15:04:05Z"
    }
}

Example CLI TX

osmosisd tx gamm create-pool --pool-file="path/to/lbp-pool.json" --from myKey

::: warning Note The command to create a liquidity bootstrapping pool is the same as creating a normal pool. However, if the pool has valid lbp-params in the pool file (json), it will be created as a liquidity bootstrapping pool. :::