Thread by @devops199fan

1/ many projects are starting to list on AMMs over ICO'ing for fundraising and price discovery 🤔

@mikeraymcdonald of @BalancerLabs coined the term Liquidity Bootstrapping Pools (LBPs) 🌊

a quick overview/analysis 👇

cc @cburniske @alexhevans @gpl_94

https://twitter.com/cburniske/status/1235639997769953281

2/ @UMAprotocol and @compoundfinance paved the way using @UniswapProtocol, and @mstable_ announced yesterday that $MTA genesis will be on @BalancerLabs 🚀

🤔 i think history will repeat itself 🔄

medium.com/mstable/meta-m…

3/ consider the equation that powers @UniswapProtocol:

x * y = k

as always pictures are worth a thousand words 😍

medium.com/block-journal/…

4/ what happens in practice for scarce assets like hot governance tokens 🪙 is that the people who buy really early get the best price 📈 ...

and the competition is stacked... 😱

but the winners get rich 🤑💸💰

https://twitter.com/jbrukh/status/1255551083402932224

5/ it happened with the @compoundfinance @UniswapProtocol listing 🧐

"...this account received it’s COMP from 0x31 which picked up it’s [sic] COMP from Uniswap one week ago, it got 2,654 COMP tokens for 445 ETH which is about $37 each!"

publish0x.com/whale-tracking…

6/ and the @UMAprotocol listing suffered from the exact same design problem 🤔

https://twitter.com/YanLiberman/status/1255530183530086404

7/ now @BalancerLabs is actually a generalization of @UniswapProtocol:

"This means Balancer pools can have the same behavior as a Uniswap pool (50/50 weight with a 0.3% fee)."

h/t @DeFiRate

defirate.com/balancer-inter…

8/ we know from the @mstable_ announcement the $MTA genesis pool is going to be 50/50 👀

they'll likely choose a comparable fee so the overall setup will be very similar...

but there is a chance it might be better this time around 🤔

9/ because if they use a @BalancerLabs private pool, @mstable_ $MTA governance could change pool weights over time as their strategy evolves 🤯

https://twitter.com/cburniske/status/1243981449247641602

10/ we actually saw an example of this in practice when $BAL launched on @BalancerLabs 😂

https://twitter.com/mikeraymcdonald/status/1275585496639471616

11/ and @PieDAO_DeFi were the first to really put the "smart" in @BalancerLabs "smart pools" with BTC++ and USD++ 😍

they were also recently featured in @Delphi_Digital 🚀

delphidigital.io/so/a0NCcSi2x#/…

cc @Alexintosh @MickdeG010

12/ in summary, the $MTA genesis will turn out the same as @UMAprotocol and @compoundfinance did on @UniswapProtocol: a lucrative ICO for the early few 💰

the pools are getting incrementally smarter but they aren't smart enough yet 😭

https://twitter.com/jbrukh/status/1255549654114205696

13/ in this case, the responsibility falls on the pool creators though 🛠️

@BalancerLabs pools are customizable and flexible so they can accommodate this situation 🤯

@mikeraymcdonald mentions one possible solution in the original article 💪

medium.com/balancer-proto…