#BinanceLaunchpoolSXT

**Launchpool** is a platform or mechanism used primarily in the cryptocurrency space to allow users to stake or lock their tokens to earn rewards in new or upcoming projects. It is commonly associated with **Binance Launchpool**, but other exchanges and DeFi platforms also offer similar services.

### **How Does Launchpool Work?**

1. **Project Selection** – A crypto project partners with a platform (like Binance) to distribute its tokens before listing.

2. **Staking Phase** – Users stake (lock) certain supported cryptocurrencies (e.g., BNB, stablecoins, or other tokens) into a pool.

3. **Farming Rewards** – While staked, users earn the new project’s tokens as rewards over a fixed period (usually a few days to weeks).

4. **Token Distribution** – Rewards are distributed proportionally based on the amount staked and the duration.

5. **Token Listing** – After the farming period, the new token gets listed on the exchange, and users can trade their earned tokens.

### **Example: Binance Launchpool**

- You stake **BNB** or **FDUSD** in a pool for "Project X."

- Over 7 days, you earn **X tokens** daily.

- After the farming period ends, **Project X** gets listed on Binance, and you can trade your earned tokens.

### **Key Benefits**

- **Low Risk** – No need to buy the new token early; earn it for free by staking existing assets.

- **Early Access** – Get exposure to new projects before public trading.

- **Passive Income** – Earn additional tokens while holding your existing crypto.

### **Risks**

- **Impermanent Loss** (if in a liquidity pool outside Binance).

- **Project Risk** – The new token may lose value after listing.

- **Lock-Up Period** – Some platforms require staking for a fixed duration.

### **Launchpool vs. Launchpad**

- **Launchpool** – Earn tokens by staking existing assets (no purchase required).

- **Launchpad** – Buy new tokens early through a lottery or direct sale (e.g., Binance Launchpad).