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Lesson 1 of 8

Should I use an LBP or auction?

In most cases, caution is warranted.

Liquidity Bootstrapping Pools (LBPs) and certain auction formats can create immediate sell pressure, unstable price discovery, and weak demand carry-through post-launch. While they offer transparency in initial pricing, they often front-load supply without guaranteeing sustained secondary liquidity.

Mechanism choice should be evaluated in the context of circulating supply, buyer composition, and post-launch depth of liquidity — not novelty alone.

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