Swerve LBP Participation Guide

Swerve
Swerve Pools
Published in
5 min readAug 30, 2023

The following section provides necessary information regarding actual buy & sell swap participation in a Swerve LBP. If something isn’t working in the way you expect, try refreshing your LBP page and starting again.

To participate in a Swerve LBP, follow these steps:

Prepare

  1. Although Swerve LBPs will support omnichain participation in the future, currently Swerve is based on the Arbitrum One mainnet. This means that you will need to have an Arbitrum One compatible wallet, such as MetaMask, and you will need to have some ETH in your wallet to pay for gas fees. If you are new to Arbitrum One, please see the Arbitrum One Docs for more information.
  2. You will need to fund your wallet with the collateral token used in Swerve LBPs. The current token to do this is Native USDC on Arbitrum Mainnet, found here: arbiscan.io/token/0xaf88d065e77c8cc2239327c5edb3a432268e5831.
  3. Familiarize yourself with the project who’s LBP you intend to participate in, go through their social media and project page (links can also be found on the Swerve pool page). Make sure you understand the project, and are comfortable with the risks involved in participating in their LBP.
  4. When you are ready to participate in the LBP, navigate to the project pool page via the Swerve Pools page.

Familiarize

When you have gotten to the project pool page, assuming the LBP event has already started, you will likely see something like this (important parts highlighted in red):

  1. There are a few things we need to be aware of in an active LBP. Also, if the price chart shows up as entirely gray, that means the LBP event has not begun yet.
  2. We can now turn our attention to the LBP’s live activity and get to performing some swaps. Let’s take a look at the highlighted portions of the page:
  3. It’s important to familiarize yourself with what a price chart is telling you within the context of how an LBP has unfolded. Here we can see in highlight point [1.] of the price chart that there was some initial trading activity (this is because the red part of the chart does not follow the predicted price curve). The red part of the price chart tells us about existing price activity that has already occurred.
  4. Throughout the portion of the LBP highlighted in [2], very little swap activity has taken place; we can see this because the red part of the chart follows the predicted price curve very smoothly.
  5. In point [3], we can see that swap activity has picked up again, as the price fluctuates up and down. The red dot in this section represents the current price in relation to how much of the LBP has been completed. We can see from TIME LEFT, that there are approximately 7 hours left in this LBP event.
  6. Point [4] shows us how many project tokens have been released (50% of initial reserves), and how many collateral tokens have been accrued ($6.79) in the LBP. (Note this is just a test LBP, in a typical pool these numbers will probably be much larger). Liquidity tells us the total pool liquidity at the last point of trade.

Swap

Now that we have gotten our bearings on the current state of the pool, we can commence a swap. In general, swapping in a Swerve LBP involves three distinct steps, which will be familiar to anyone who has used a DEX or LP before:

  1. Entering the amount of tokens you wish to swap.
  2. Approving the swap amount to be spent within the LBP pool.

3. Swap the tokens.

Note that the Approval and Swap step will each involve signing transactions with the wallet you have connected to Swerve with (eg. Metamask or Rabby). If you are unfamiliar with this process, please refer to the Metamask docs.

Please also note that swaps in an LBP can go both ways. If you wish to trade project tokens back into the pool for collateral tokens, you can click the “Switch” button to reverse the swap direction.

Notifications

When performing Swaps and Approvals, take note of the status messages which appear in the top right of your screen, for example:

These messages update you as to your current status interacting with the pool. If you get stuck, you can provide the current message you see in the Telegram support channel for Swerve (found in the footer of the main Swerve page).

Slippage

You may find it important to control slippage parameters in your LBP swaps. This is especially true if you are swapping a project token for a collateral token, because the price of a collateral token relative to a project token is typically increasing over time in an LBP.

The slippage control on the LBP page can be found by clicking the “Settings” button in the top right of the Swap section:

And that’s it! From here, you should feel comfortable and confident in participating in any future Swerve LBP.

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