The Balancer Liquidity Bootstrapping Pool (BLBP) is quickly arriving, and the Illuvinati Council has approved IIP – 002 which sets the parameters for the pool. You will see a total of one million tokens inside the (BLBP). This is the public’s first chance to acquire ILV outside of the two Discord Airdrops. Balancer was chosen since it is the fairest way to distribute the tokens, which has shown with many projects. But there are some important details you must know, so please read watchfully.
What is a Balancer Liquidity Bootstrapping Pool?
A Balancer Liquidity Bootstrapping Pool is designed to allow DeFi protocols to acquire capital from a smaller amount of liquidity than would usually be needed when seeding a pool such as Uniswap or Sushiswap.
Balancer has been able to solve this through variable weightings of assets. In a regular pool, two assets are matched in value 50: 50. In a BLBP, this is different, and the weights change over time to create downward pressure.
When the pool goes live, the price will start to decline, which is why the initial price of the token is placed to a high value.
There are two competing forces for the price of the token in a BLBP. The changing of the weights of the tokens will naturally push the price tag on the token down, because the weights start out with the token being worth most of the pool’s value, and wind up at a much lower level. The other force is trading of the token. As people purchase the token, how many tokens in the pool decreases, but the value of the tokens must still match the weights, so the price of the token increases to compensate.
What you should see is a gradual drop in token price, matched by periodic ‘bumps’ where in actuality the token goes back up. The theory is that, the price should eventually find some value that the entire market finds to be an accurate value for the token.
Steps to participate
- Go to swap. illuvium. io
- Connect a compatible wallet — MetaMask, WalletConnect, Coinbase Wallet, Trezor/Ledger (through Metamask)
- $ILV is paired with ETH. Swapping with other assets can lead to greater transaction costs.
- Ensure your wallet has sufficient ETH for gas charges.
- Insert the total amount of $ILV that you wish to purchase and select “SWAP”
- $ILV will be in your wallet when the transaction is complete.
For more information visit Balancer LBP FAQ .
An IIP was created and submitted to the Illuvinati Council Tuesday, and then approved by the Council on Wednesday. As a result the parameters for the sale are as follows:
Start Price: $50 USD
Starting weights: 96: 4
End weights: 50: 50
Duration: 72 hours
Token Supply: 1 million.
Token Contract Address: 0x767fe9edc9e0df98e07454847909b5e959d7ca0e
Token Symbol: ILV
Decimals of Precision: 18
Key Takeaways For The Sale
- Do Your Own Research: Nothing in this document should be taken as financial advice. It only describes the mechanisms and parameters of the BLBP.
- No FOMO: The declining price mechanism of the BLBP allows interested users to wait until they truly are comfortable with the price before acquiring tokens. No need to rush.
- Bots aren’t incentivized: Front-running or sniping transactions doesn’t work due to the nature of the pool.
- Price discovery: Similar to a Dutch auction, users will have quite a long time window to acquire tokens at a cost they find attractive. Market forces will determine what the last valuation will be.
- Use GAS wisely: As Balancer is on the Ethereum network, transactions are at the mercy of GAS fees. To minimize potential GAS costs, reduce the quantity of transactions, as each one attracts a fee.
- Slippage and failed transactions: There is a limit for the slippage of any transaction. Slower transactions (by selecting lower GAS) risk the price moving too much and failing to process, which wastes GAS.
The graph above shows the price of a token compared to the starting price (as a percentage) in times where no purchases are created. This is to illustrate the downwards pressure on the spot price.
The graph above shows the price tag on a token compared to the starting price (as a percentage) in a situation where random purchases are made throughout the sale. That is to illustrate how purchases bump the price.
NOTE: This does not represent the actual price or direction of the token through the sale and is used for illustrative purposes only.
Exclusive Illuvium BLBP NFTs
At the end of the bootstrap, the amount of ETH employed for all purchases converts to points at a rate of one point per ETH. These points can be used to redeem promo NFTs that will only be available for a short period of time following a sale. This applies and then those who hold all of their ILV purchases after the sale concludes until the NFTs redeem window is closed.
The total list of NFT’s redeemable in the BLP sale will soon be viewable in a followup medium post prior to the BLP opening.
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Join us: discord. gg/illuvium
Disclaimer: Illuvium may be the first community governed AAA blockchain-based video game. $ILV is a digital asset without associated rights at this time apart from governance rights. Under Illuvium’s decentralized governance structure, members of the Illuvinati Council are elected by $ILV holders and will determine configuration and features that may bring about holders of $ILV receiving NFTs, a portion of revenue generated in the game or other benefits. The type of any such benefit just isn’t yet determined and will be set by the Council every once in awhile. Any prior statements of potential benefits of holding $ILV are suggestive only but to be determined by the Illuminati Council. A person acquiring $ILV has no actual, contingent or prospective rights to any such benefits and appropriately should have no hope or expectation of any benefits being provided to them. If any benefits are provided later, they are subject to change by the Council. Any person considering acquiring $ILV should consider seeking independent advice.
18. Illuvium Balancer Liquidity Bootstrap Pool Starts Tuesday March 30th, 15: 00 UTC was originally published in Illuvium Hub on Medium, where people are continuing the conversation by highlighting and responding to this story.
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