1./ @WhiteWhaleTerra is going to use a new way of launching their token; #BOOTSWAP.
Let me explain to you why they use it, how it works and how you can be prepared for their token launch. π§΅
Let me explain to you why they use it, how it works and how you can be prepared for their token launch. π§΅
2./ We have seen quite a few token launches on the Terra network now and unfortunately, many of them were not perfect. Two major problems have been noticed by @WhiteWhaleTerra:
3./ The first one is too low liquidity which causes a huge price pump at the launch. Nice for the insiders but if you want to have a satisfied community this is not the way to go. The second problem is bots sniping all the liquidity which causes the same issue.
4./ So therefore a new method had to be found: #BOOTSWAP! But what is it? Actually, it looks very much like a @BalancerLabs LBP. LBPs are basically liquidity pools that start with a high price of the token to be sold which slowly floats down over a pre-set period of time.
5./ In this way, bots are unable to snipe the first tokens at a cheap price. So thatβs one problem solved.
How can the retail buyers benefit?
This is also something @WhiteWhaleTerra thought about. As I just said, in a LBP the price starts high and slowly floats down.
How can the retail buyers benefit?
This is also something @WhiteWhaleTerra thought about. As I just said, in a LBP the price starts high and slowly floats down.
6./ To be sure there are enough tokens available, @WhiteWhaleTerra will deposit 100M tokens in the #BOOTSWAP. 100M?! Yes, thatβs right. By doing this, even if bots snipe the first tokens, there will be enough liquidity left for the price to go down for price discovery.
7./ In this way, @WhiteWhaleTerra ensures there are enough tokens left for retail buyers to buy.
So now we know how this method solves the problems mentioned in the beginning of this thread, letβs have a look at the difference with a regular LBP.
So now we know how this method solves the problems mentioned in the beginning of this thread, letβs have a look at the difference with a regular LBP.
8./ Usually, LBPs are being used as a fundraising method. This is not the intention of the #BOOTSWAP. As you may now, @whitewhale is going to work with protocol owned liquidity. And thatβs where the #BOOTSWAP revenue comes into play. How does this work?
9./ When the LBP reaches the predetermined ratio of 50/50 $UST / $WHALE, all the liquidity will be deposited into @terraswap and the LP tokens will be moved to the @Whitewhale #warchest and are owned by the protocol from that moment.
10./ Because itβs not a fundraising all deposited funds will go directly to the community owned #warchest. As we know, PoL is a getting more and more important since liquidity rewards canβt last forever. In my opinion, @whitewhale is making an excellent choice by doing this.
11./ And you know whatβs best? NO #KYC! So, everyone from The United States and all other regions that are usually restricted, you can participate!
12./ In my opinion this is an excellent method to have a fair launch and at the same time boost the protocol owned liquidity. Their combination of token value capture, protocol owned liquidity and decentralised arbitrage will be huge! π₯π₯π₯
β’ β’ β’
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