The Liquidity Bootstrapping Pool (or LBP) was developed by @Balancer to help solve DEX token launch problems such as bots & frontrunning, centralisation of tokens and low seed liquidity to name a few
To understand the LBP a little better we have to to understand what *weighted* pools are
Uniswap V2 pools have a fixed 50/50 weighting, what this means is that the pool assume that 50% of the value of the entire pool is in one of the two assets
Fully diluted market cap (FDMC) is the maximum supply of tokens multiplied by the token price.
It asks the question: What if all tokens were in circulation?
If a #fullydilutedmarketcap is much higher than the market cap, it means there are a lot of tokens locked up waiting to come on the market.
Example:
If the market cap is only 10% of the FDMC and assuming the tokens are all released in the next year, the project has to demonstrate 10x growth (1000% !) in a year just to MAINTAIN its current price.