# FAQ

**What is the difference between Lambo V2 and other Pump.Fun forks?**

> Simple. Lambo V2 is not a Pump.Fun for&#x6B;**.** Lambo V2 does not obtain initial token liquidity through token sales & fundraising. Instead, it acquires initial liquidity through cost-free vETH.

**What are the benefits for Devs who** intend **to launch tokens on Lambo.Win V2?**

> **Devs** can launch tokens with one-click without having to add real ETH into the liquidity pool, saving initial costs. Plus, our mechanism can save up to 50% on market-making costs. For more details, please refer to the whitepaper (link).

**Which DEX will the Lambo.Win V2 token be deployed on after launch?**

> It will be deployed directly on Uniswap V2, with future compatibility for Uniswap V3 & Uniswap V4.

**How can devs get free initial liquidity through vETH？**

> vETH can be minted through our protocol since the liquidity will be locked in the pool and never withdrawn.

**What are the core advantages of virtual liquidity?**

> * Virtual liquidity saves initial LP liquidity costs;
> * It saves 50% on market-making costs;
> * It provides users and devs with 2x LP leverage;

**How can users trade memes using vETH?**

> Users do not need to swap ETH for vETH to participate in meme trading. They can do so through:
>
> * The Lambo website frontend;
> * Aggregators (currently only supporting OKX wallet);
> * Various Trading Bots/Systems (TBD);
> * Uniswap (TBD);

For details, please refer to the Roadmap section.

**Why did we create an ETH-vETH pool on Curve?**

> 1. We needed to establish an ETH-vETH pool on Curve to facilitate quick access and pricing for aggregators and other bots.
> 2. Curve's StableNG Pool is well-suited for asset anchoring, allowing it to maintain a 1:1 peg even during large-scale deviations. This helps reduce our rebalancing frequency.
> 3. Overall, our team has established there is no better DEX than Curve for our protocol.

**How to maintain the ETH-vETH peg?**

> The cash-in and cash-out for ETH<->vETH is pegged 1:1 for Lambo whitelisted users. For this reason, Lambo has developed a self-rebalancing arbitrage contract.
>
> 1. If ETH in the Curve pool > vETH, indicating vETH is at a premium, the rebalance contract can use a flash loan to borrow ETH, mint vETH, sell vETH in the pool, and ultimately obtain more ETH, repaying the flash loan, thus achieving a 1:1 ratio in the curve pool (ETH <-> vETH).
> 2. If ETH in the Curve pool < vETH, indicating vETH is at a discount, the rebalance contract can use a flash loan to borrow ETH, buy vETH in the pool, and ultimately obtain more vETH, redeeming it back to ETH and repay the flash loan, thus achieving a 1:1 ratio in the curve pool (ETH <-> vETH).

**How can Devs and users add virtual liquidity?**

> There are two ways to do so:
>
> * Adding an equivalent amount of Meme-vETH LP through Uniswap V2;
> * Taking a vETH loan through the Virtual Liquidity Function to add liquidity;

**What is the difference between these two methods** of adding **virtual liquidity?**

> * The first method is a standard liquidity addition on Uniswap V2. Its advantages and disadvantages will not be analyzed here.
> * The second method only requires adding single-side memes to make the liquidity pool which saves 50% LP costs. The advantage of this mechanism is trivial since it is a 2x LP leverage. But if the memecoin's price goes down, the LP will be locked. In this case, users will incur losses.

**How to withdraw virtual liquidity LP?**

> * The first method entails withdrawing LP through Uniswap V2;
> * The second method currently does not support withdrawal. The LP will be burned. Future versions, however, will have a withdrawal option.

**Is it possible to use vETH or Meme to add one-sided virtual liquidity?**

> No, currently Lambo only supports Uniswap V2.

**Might a large number of users borrowing vETH to add virtual liquidity cause any issues?**

> No, users need to purchase an equivalent amount of meme assets to form virtual liquidity LP. A detailed mathematical explanation of this mechanism can be found in the whitepaper.

**How can users earn profits through vETH?**

> By providing ETH-vETH trading pairs on Curve, users can earn:
>
> * Swap fees;
> * Get $CRV emissions;


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