Connext x Fjord Foundry: chain agnostic LBP auctions are here
We are proud to announce that Fjord, the liquidity bootstrapping platform, has upgraded to crosschain by integrating Connext.
Fjord (formerly Copper Launch) has pioneered the concept of Liquidity Bootstrapping Pools (based on Balancer smart contracts) that currently constitute one of the fairest and most open ways for projects to generate liquidity for new tokens:
- LBPs enable price discovery: the initial price is not set by a central authority but is determined by the market forces of supply and demand. This helps in establishing a fair market value for the new token ensures that everyone has an equal opportunity to buy the new token at the same initial price.
- LBPs naturally provide initial liquidity, necessary for the token to be traded on a decentralized exchange. Without initial liquidity, the new token might not have enough buyers and sellers to establish a market and price.
Chain agnostic inflow
The vision of LBPs to democratize access to new tokens would be incomplete without a way for people to get involved with the process from anywhere.
The integration with Connext enables a seamless, trustless experience to swap into the new tokens across chains, as users can access an LBP on any ecosystem from wherever they own funds.
The fast confirmation of crosschain transactions ensures that an order is executed as close as possible to the user’s intention.
Why Connext
The Fjord team explained: “Enabling cross-chain Liquidity Bootstrapping Pools via Connext on Fjord is a game-changer for supporting the next generation of DAOs and communities. The Connext team’s dedication and passion in building a seamless, user-friendly experience for cross-chain transactions has been infectious and their support throughout the process has been excellent. With Fjord’s mission of providing greater access to early-stage ideas, this collaboration will pave the way for more users to participate in the exciting world of LBPs and join more communities that matter to them.”
How it works
The Fjord team developed and deployed both a “source” and a “target” smart contract for each supported chain.
When users initiate a xchain swap, they interact with the source smart contract in the chain where they have funds (non-LBP chain) which in turn calls Connext’s core smart contract to route it to the destination contract (in the LBP chain).
The destination chain receives the funds and the LBP vault swap parameters from the Connext protocol, and performs a swap on behalf of the user.
New use cases
Fjord is further expanding LBP use cases into NFT collections drops, NFT floor sweeping, and additional decentralized market making services while also scaling vertically to support liquidity needs of newly launched projects.
The platform can also be used by people and projects for dollar cost averaging in and out of positions to reduce the impact on the market of big operations.
All these innovative use cases can be further improved with a crosschain architecture, and we look forward to enabling new use cases together with the talented and value-aligned Fjord team.
About Fjord
Fjord (formerly Copper Launch) is a liquidity bootstrapping platform (LBP) that enables projects to generate liquidity for new tokens in a transparent and permissionless manner. Fjord has supported teams like Merit Circle, Avocado DAO, Crypto Unicorns, Breeder DAO and many more with ~$1.5b in volume, $750m in liquidity generated, and over 50,000 unique users.
Website | Twitter | Discord | Blog
About Connext
Connext is a network for fast, trustless communication between chains and rollups. It is the only interoperability system of its type that does this cheaply and quickly without introducing any new trust assumptions. Connext is aimed at developers looking to build secure bridges and other natively cross-chain applications. To date, over $1.5b in transactions have securely crossed the network.
Website | Build xApps | Twitter | Discord | Crosschain Bridge
