LBPs (liquidity bootstrapping pools) are often referred to as adjustable rights pools or smart pools. A smart pool is essentially a contract that controls a core pool of tokens for use on an exchange. Unlike other shared pools, smart pool controllers have limited ability to adjust pool specifications. As a result, a smart pool is less trusting than a shared pool but does not necessitate the complete trust of a private pool.

The possibility to launch tokens with minimum capital requirements is the driving force behind an LBP. To accomplish this, a two-token pool containing a project token and a collateral token is created. The weights are then initially set in favour of the project token. Over time, the collateral coin gradually gains favour by the end of the token sale. Controllers can adjust the sale to keep the price reasonably consistent in order to maximise revenue, or they can lower the price to the appropriate minimum (for example, the initial coin offering price).


Another distinguishing feature of LBPs is the ability to pause swapping anytime necessary. A pool controller may choose to do this for a variety of reasons, including strong, unexpected demand driving up the token price or users profitably selling tokens back to the pool instead of buying them. When a whale has no reason to benefit from a "rug pull" or other similar strategy that causes quick price volatility, the token's price discovery becomes more flexible. Despite having the ability to prevent swapping, it is uncommon since the pool operator is incentivized to leave swapping fully allowed because the primary purpose of a token sale is to sell tokens.