Guide to KINE’s Initial DEX Offering
Kine Protocol will be distributing 5,000,000 (5 million) KINE via a Balancer Liquidity Bootstrapping Pool at about 2021–03–11 14:00 UTC and ending at about 2021–03–13 02:00 UTC. The LBP will last approximately 36 hours.
$KINE LBP Key Parameters
Balancer LBP swap page: Link
Balancer Pool Info: Link
KINE Token contract: Link
LBP (Liquidity Bootstrapping Pool) is a variant of dutch auction or reverse auction. The exchange rate will drop if no one buys as time progresses. Please learn how it works before participating in LBP and only swap within your reasonable price range. Don’t FOMO.
You can find out details about KINE’s token model at https://docs.kine.io/whitepaper/kine-token-model. For detailed calculations on how the LBP should progress, please checkout this spreadsheet on price simulation.
⚠️ IMPORTANT: You shall prepare enough ETH in your wallet to pay gas fees for LBP token swaps.
⚠️ IMPORTANT: Due to the reverse auction mechanism, the exchange rate will trend down if no one buys. The declining slope is steepest at the very beginning. Please trade with caution!
💡 REMINDER: The default max slippage is 0.5%, you may set it higher before trading a large amount to avoid reverted transactions.
How to Participate in Kine Protocol’s LBP
If you are not familiar with Kine Protocol, we suggest you take a look at the documents about Kine Protocol before participating:
You can also learn about Balancer’s Liquidity Bootstrapping Pools here. They are a special type of weight-shifting pool designed for token distributions.
In order to swap $KINE tokens on Balancer LBP, users will have to go through three steps:
- Install and set up MetaMask
- Navigate to Balancer LBP swap page
- Swap $KINE
We detail these steps below:
1. Install and Setup MetaMask
We recommend using MetaMask, which is a Web3 enabled cryptocurrency wallet, to swap tokens on Balancer LBP. You can download the MetaMask extension directly in browsers such as Google Chrome, Firefox. In addition to Metamask, Balancer also supports WalletConnect, Coinbase, Portis, etc. This guide will focus on the use of Metamask, which is similar to other wallets.
After preparing Metamask, you need to prepare two cryptocurrencies:
- $ETH to pay for Ethereum gas fees.
- $USDC to exchange for $KINE tokens.
While other tokens can also be used, we recommend preparing $USDC. Balancer’s multi-pool routing means other tokens besides $USDC can be used, but may result in a higher price as extra hops will be required.
2. Navigate to Balancer Exchange via this link
Balancer is an n-dimensional automated market-maker built on Ethereum. Once you arrive at Balancer, you should see a page similar to the one below.
Here are the contract address of $KINE token and the $KINE/$USDC pool contract address for your reference
- The $KINE token address: 0xcbfef8fdd706cde6f208460f2bf39aa9c785f05d
- Balancer LBP address: 0x21C4509100443f756B6fFF33382Bc5e42849D49b
⚠️ Please double-check the right token address. Kine Protocol will not compensate any loss on swapping the wrong tokens.
Unlock your wallet
Next, you need to allow Balancer to spend your $USDC, so that you can interact with Balancer smart contracts continually. Submit the transaction and wait for it to confirm.
3. Swap KINE
Once you have submitted your bids, all you have to do is to wait until MetaMask updates the transaction status from PENDING to SUCCESS in a few minutes.
If you can’t see $KINE token in your wallet, you can add custom token manually to your wallet with below info.
Token Address: 0xcbfef8fdd706cde6f208460f2bf39aa9c785f05d
Token Symbol: KINE
Decimals of Precision: 18
REMINDERS
- When to buy
The Balancer LBP is designed to prevent front-running. It will start at a high price then go down quickly as the weights of the pool change. This prevents people from front-running other people.
It is important to stay rational. If you feel the price is going up too quickly, be patient because the price will go down as the weight changes, and wait until the price hits the value you think is right.
- Price changes
The Starting Price might NOT be the fair price of $KINE! Due to the LBP mechanism, the price is naturally pushed down by the gradual weight change. And the downward force is the strongest at the very beginning. That is why we don’t recommend that everyone storms in when the swap begins. We hope that everyone gets in with a reasonable price and have fun with it!
- Secondary liquidity
After the 36-hour period, the remainly liquidity of the LBP will be removed. Part of the proceeds will be used to support Uniswap liquidity pairs of $KINE
KINE holders can also add liquidity to the Uniswap pairs to receive liquidity mining rewards. We will release details about LP incentives later.
