Recap of Initial Parameters

To launch an LBP on TAND3M, you must define several critical parameters, each influencing the behavior of the LBP and the resulting Spot Price:

• Token Volumes: The initial quantities of each token in the pool. These volumes directly impact the starting Spot Price and the pool's liquidity.

• Initial Weights of Tokens: These weights establish the initial price ratio between the tokens. Typically, the token being launched (Token A) is given a higher weight, making it more expensive compared to a stable token (Token B).

• Duration of the LBP: The total time over which the LBP operates, affecting how quickly the Spot Price changes as weights adjust.

These parameters are linked to specific formulas that govern the LBP's behavior, including the Spot Price formula and the Weighted Balancing formula :

$$Weight_A^{Current}= Weight_A^{Start} + \frac{ElapsedTime}{TotalDuration} \times (Weight_A^{End}- Weight_A^{Start})$$

$$Weight_A​+Weight_B​=1$$

$$SpotPrice_A = \frac{ Volume_B \times Volume_A} {Weight_A \times Weight_B}$$

For a comprehensive understanding of the mechanics and mathematics behind TAND3M LBPs, please refer to the Lightpaper. It offers detailed explanations and in-depth information for those seeking further insights.