# Nitro Launch pool

The **Nitro Launchpad** leverages Nitro’s **concentrated liquidity DEX design** to bootstrap liquidity and facilitate price discovery for new tokens. Fully integrated with the protocol’s AMM infrastructure, it enables a seamless transition from the launch phase to a standard tradable pool, streamlining the token distribution process.

## **Key Features**

* **Customizable Liquidity Distribution**:\
  Projects can strategically allocate liquidity within specific price ranges or bins to shape early valuation metrics.
* **Dynamic Price Discovery**:\
  Prices adjust dynamically as participants demand the base asset (e.g., $NAD) while the launchpool accumulates the quote asset (e.g., $USDC).
* **Zero Upfront Capital Requirement**:\
  Launchpools can be initialized with 100% base assets and 0% quote assets, significantly reducing capital barriers for projects.
* **Direct Transition to DEX**:\
  After the launch phase, the pool automatically transitions into a standard trading pool, enabling swaps, borrowing, and liquidity provisioning without additional configuration.
* **Access List**:\
  Projects can restrict participation to specific community members via customizable whitelists, ensuring controlled access during the launch phase.

## **Core Pool Configurations**

### **Assets**

* **Base Asset**: The token being launched (e.g., $NAD).
* **Quote Asset**: The asset accepted in exchange for the base asset (e.g., $USDC).

### **Pricing**

* **Starting Price** $$(P\_{start})$$: Initial price of the base asset.
* **Final Price** $$(P\_{final})$$: Target maximum price for the base asset during the launch phase.
* **Bin Step** $$(s)$$: Configurable percentage difference between consecutive price bins.
  * **Example**:\
    $$P\_{start} + s = P\_2$$\
    $$P\_2 + s = P\_3$$, and so on.

### **Liquidity Distribution**

Liquidity distribution involves defining the range, amount, and structure of liquidity placement across price bins.

* **Distribution Range**: Defines the number of bins or percentage range between the starting price $$(P\_{start})$$ and final price $$(P\_{final})$$.
* **Distribution Amount**: The total amount of the base asset allocated across the bins within the distribution range.
* **Distribution Structures**: Determines how the **distribution amount** is allocated within the **distribution range**:
  * **Ascending Structure**: Liquidity progressively increases with price, allocating more liquidity to higher price bins.$$(Δ≥1)$$
  * **Descending Structure**: Liquidity progressively decreases with price, where each subsequent bin receives less liquidity than the previous one. $$(Δ≤1)$$
  * **Uniform Distribution**: Liquidity is evenly distributed across all bins within the selected range. $$(\Delta = 0)$$

{% hint style="success" %}
The **Asset**, **Pricing**, and **Liquidity Distribution** configurations help shape the early market valuation and expectations.

* **Starting Market Cap**:\
  The token’s initial valuation, calculated using the starting price and the total base asset distributed. 

$$\text{Starting Market Cap} = P\_{\text{start}} \times \text{Distribution Amount}$$

* **Target Market Cap**:\
  The token’s maximum potential valuation if the price reaches the final price. 

$$\text{Target Market Cap} = P\_{\text{final}} \times \text{Distribution Amount}$$
{% endhint %}

### **Claim Weight**

Claim weight governs how a participant's **buying price** $$(P\_{buy})$$ and the **end price** $$(P\_{end})$$ influence the final tokens to be claimed.

{% hint style="success" %}

* Tokens are claimed at the end of the launchpool, not during the purchase.

* The claimable amount depends on the weights set by the pool creator.
  {% endhint %}

* **Claim Weight Configurations:**
  * $$W\_{buy} = 0, W\_{end}=1$$: Allocation based entirely on the end price.
  * $$W\_{buy} = 1,W\_{end} = 0$$: Allocation based entirely on the buying price.
  * $$W\_{buy} = 0.3,W\_{end} = 0.7$$: A weighted combination of 30% buying price and 70% end price.

* **Formula for Token Claiming** \
  The number of tokens a participant can claim is calculated as:\
  $$Amount\_{out} = \left( \dfrac{Amount\_{in} \times W\_{buy}}{P\_{buy}} \right) + \left( \dfrac{Amount\_{in} \times W\_{end}}{P\_{end}} \right)$$

* **Key Variables:**
  * $$P\_{start}$$: Starting price.
  * $$P\_{final}$$: Final price.
  * $$P\_{end}$$​: End price at launchpool expiry $$(P\_{end} \leq P\_{final})$$.
  * $$P\_{buy}$$​: User’s buying price $$(P\_{start} \leq P\_{buy} \leq P\_{final})$$
  * $$W\_{buy}$$​: Weight of the buying price.
  * $$W\_{end}$$​: Weight of the end price.
  * $$Amount\_{in}$$​: Quote asset invested by the user.
  * $$Amount\_{out}$$: Final number of tokens allocated to the user.

### **Additional Configurations**

* **User Limits**:\
  Sets the maximum amount of base tokens each participant can purchase, ensuring equitable participation.
* **Access List**:\
  Restricts participation to pre-approved addresses, enabling projects to target specific communities or supporters.
* **Duration**:\
  Defines the timeframe for the launchpool. Once the duration ends, the pool transitions seamlessly into a standard DEX pool, allowing regular trading, borrowing, and liquidity provisioning.