MILK Liquidity Pool Bootstrapping Event

3 min readOct 11, 2022


MILK Liquidity Pool Bootstrapping Event

What an exciting few weeks! On the 23rd of September we have launched our new and redesigned website and less than two weeks later, on the 5th of October, we went ahead and executed our biggest upgrade this year — launching the Plutus v2 smart contracts and liquidity pools.

But we are not stopping there! In anticipation of the 3rd and final step of our MuesliSwap V2, yield farming, we have decided to do a Liquidity Bootstrapping Event, or LBE for short, for our native $MILK token.

Event Overview: Liquidity Bootstrapping Event by MuesliSwap

- Start Date: 12th October
- End Date: 22nd October
- Maximum MILK available for this campaign: 500,000 MILK

The Basics of Liquidity Bootstrapping

This event is inspired by MinSwap’s Collective Zap-In and will help to significantly boost the liquidity in the MILK/ADA liquidity pool.

We achieve this by performing a Collective Zap-In in which users provide ADA while the corresponding MILK tokens will be provided by the MuesliSwap team. Effectively, 50% of the total liquidity value will be provided by the community, with the other 50% being provided by the MuesliSwap team.

The idea works as following: You can add ADA to the collective Zap-In pool for which you will receive MILK LBE tokens. The ADA added will automatically be paired with MILK provided from the MuesliSwap treasury and added to the MILK/ADA liquidity pool throughout the event. The share in the liquidity pool is represented by liquidity pool tokens. These liquidity pool tokens are collected throughout the 10 day campaign and then linked to the MILK LB tokens.

After the bootstrapping event, MILK LBE tokens can be redeemed back for liquidity pool (LP) tokens — this amounts to 50% of total liquidity value. The remaining 50% of LP tokens will become Project Owned Liquidity (POL).

The pairing is at the current MILK/ADA price in the MuesliSwap pool when liquidity tokens are collected. As liquidity tokens are collected throughout the event, the effective price for each user is averaged over the whole time span of the event.

During the event, users will not be able to withdraw their ADA since these will be immediately paired with MILK and added to the liquidity pool.

Benefits of Participation in this LBE

The Milk LBE tokens that will be received at the end of this event can be staked in a special farm and will receive higher yield returns for four weeks. Of course all Milk LBE tokens can still be redeemed after these four weeks.

Not only will you receive higher yield rewards, but you can also boost your earnings even further through the use of one of our Hungry Cow NFTs!

Of course, you can still participate in yield farming with neither Hungry Cow nor Milk LBE tokens, but you will not receive any boosted yield rewards for the MILK/ADA pool.

Example Participation in this LBE

Let’s say Tim wants to participate in this LBE, this is what he needs to do and what he can expect:

  1. Any time between the 12th and 22nd of October Tim goes to, connects his wallet and goes to Launchpad
  2. Tim provides 100 ADA and receives 100 Milk LBE
  3. In the following 4 weeks after the LBE, Tim can stake his Milk LBE tokens to earn boosted yield rewards on the MuesliSwap MILK/ADA pool.
  4. *IF* Tim has an additional Hungry Cown NFT with a 10% boost, and stakes the NFT, then his earnings are boosted by 10%.
  5. At any time after the 22nd, Tim can redeem his MILK-LBE tokens for normal MILK/ADA pool LP tokens and can freely use them to i.e. stake them or to withdraw his liquidity.

This is a new idea to further promote the MILK token and create POL that benefits the entire MuesliSwap community.

Note that the 500,000 MILK provided is a maximum amount and we will only provide as much MILK as ADA has been pledged to the campaign. Moreover, ~50% of the MILK provided in the campaign becomes part of the Project Owned Liquidity (POL).

You can read more about liquidity pools here.

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Update: Reworded example with Hungry Cow in Staking. Added paragraph about pricing of MILK when supplying ADA.




MuesliSwap is a decentralized exchange (DEX) for Cardano. On a mission towards a decentralized future.