The article explains the operating mechanism of the Liquidity Bootstrapping Pool (LBP) in a simple and easy-to-understand manner, revealing how it achieves fair price discovery and token distribution in IDO. By analyzing the influencing factors of token prices in LBP, the article provides investors with strategies for participating in LBP, helping them avoid buying at price peaks, and guiding them to grasp reasonable purchase opportunities based on project research and market popularity. In addition, the article also discusses the advantages and challenges of LBP for project parties, providing readers with a comprehensive guide to participating in LBP.