Instructions for participating in the Balancer Liquidity Bootstrapping Pool (BLBP) for PathDAO
Here, we’re sharing all the information you need to participate in the BLBP and acquire your own portion of $PATH tokens. We’ll guide you through the required steps and parameters.
Please note: the contract address will be shared through our official channels only; nobody will DM you nor can you purchase $PATH tokens prior to the BLBP.
How does the Balancer Liquidity Bootstrapping Pool (BLBP) work?
In a recent announcement, we introduced the concept of a Balancer Liquidity Bootstrapping Pool (BLBP) for PathDAO as this innovative mechanism allows projects like ours to raise funds in a fair way, removing the flaws of individual caps, whitelisting and bots.
To ensure everyone is able to participate in the BLBP, we want to provide a clear understanding of the process so you can make a considered decision about when, how and what to invest. Read on for answers to the most common and important questions regarding our BLBP.
Why did we choose a BLBP?
The three main building blocks of PathDAO are exciting Play-to-Earn games, NFTs and an incredible, vibrant community that continues to grow.
From day one, our community has been vital to PathDAO’s success. We have an incredible army of supporters, which is why, when it came to deciding how to bring the $PATH token to life, we felt that there was only one truly fair way: the BLBP.
With dozens of options available in terms of launchpads, staking pools etc, there’s no other way of making it work for everyone. You may have to purchase a large amount of tokens for the specific launchpool and meet the whitelisting criteria just to receive a tiny allocation, while bots and gas wars ruin the fun for everyone involved.
With a BLBP, however, anyone can invest, big or small. Without the ability to run bots and scripts, there will be genuine price discovery happening across the 72-hour period the pool will be open. Tokens will be immediately tradable making it impossible for a large party to dump on smaller ones.
So why choose a BLBP? To truly give everyone a chance to participate in the PathDAO.
What are the possible outcomes?
Naturally, we can’t predict the exact outcome of this BLBP. By fundraising this way, we let the market decide what the eventual token price will be and, therefore, how much we will raise for our DAO’s treasury.
To understand a BLBP, it’s important to know what would happen to the token price if no one performs a swap to buy $PATH tokens. In the image below, you can see what happens when there isn’t a single transaction over the 72-hour duration of the pool. In this case, the price of the $PATH token slowly decreases to the final end price.
Given the response we have received so far, the above scenario is very unlikely and therefore we think it’s best to compare our upcoming BLBP with two recent launches that happened on Copperlaunch: KlimaDAO and GRO.
KlimaDAO — $aKLIMA
KlimaDAO is a project that’s building an ambitious carbon-backed digital currency and ecosystem. A little over a month ago, it took to the Copperlaunch stage for its public round. Its BLBP had the following parameters:
Starting weight: 96:4
Ending weight: 10:90
Duration: 72 hours
Initial AKlima: 120000
Initial USDC: 579500
In the image above, you can see how, over the 72-hour period, the price gradually dropped to later increase to its final price of $323.4271. When analyzing the graph, we can see that 11 hours after the opening of the pool, the price bottomed out to only go up from there. In the end, 4,056 people contributed to the BLBP, raising over $17.47 million for KlimaDAO with a volume of $33.5 million.
GRO — $GRO
GRO is a new way to earn yield safely or with leverage on stablecoins. At the end of September, it took to the Copperlaunch stage for its public round. Its BLBP had the following parameters:
Starting weight: 95:5
Ending weight: 50:50
Duration: 72 hours
Initial GRO: 5000000
Initial USDC: 2650000
In the image above, you can see how, over the 72-hour period, the price gradually dropped to steadily increase close to the initial starting price with a final $9.2808. When analyzing the graph, we can see that eight hours after the opening of the pool, the price bottomed out to only go up from there. In the end, 3,266 people contributed to the BLBP, raising over $18.31 million for GRO with a volume of $37.7 million.
Important takeaways
As you can see with both KlimaDAO and GRO, there’s no need to purchase at the very beginning of the period. The way a BLBP is set up, the price gradually drops and, therefore, it might be better to purchase after a couple of hours. It took 11 hours for KlimaDAO and eight hours for GRO to find their bottom prices respectively. On that note, there’s no blueprint for BLBPs; every single one is unique and will attract a different kind of investor plotting their own chart.
PathDAO BLBP parameters
The PathDAO Balancer Liquidity Bootstrapping Pool will have the following key parameters:
- Start Date: 4 December, 10AM EST
- End Date: 7 December, 10AM EST
- Sale Duration: 3 days (72 hours)
- Platform: Copperlaunch.com
- Starting price: $0.3986
- Ending price: $0.03
- Initial PATH pooled: 50,000,000
- Initial USDC pooled: 1,500,000
- Starting weights: PATH 93%: USDC 7%
- Ending weights: PATH 50%: USDC 50%
Follow these steps to participate
- Firstly, head over to our Copperlaunch page created for the PathDAO BLBP -> https://copperlaunch.com/auctions/0xd153E1DE63b478213b7B62BF47dcc4099608B1AE
2. You will then have to connect a compatible wallet to this page. This could be MetaMask, WalletConnect, Gnosis Safe or directly with your Ledger.
3. After you’re connected, state the amount of $USDC tokens that you wish to purchase with for $PATH tokens and select “Approve for Trading”. After you have approved your ERC-20 token, select “Buy PATH”.
4. Your transaction will now start processing. After the transaction is confirmed on the Ethereum blockchain, you will receive your $PATH tokens in your wallet. You can refresh the Copperlaunch page to see your $PATH balance.
Important to know when swapping
- Copperlaunch is the main UI but only includes ETH, USDC, WETH AND DAI
- Always make sure that you have sufficient ETH for gas fees in your wallet
- We have paired $PATH with USDC. You can swap against any token you like but swapping with other assets could result in slippage depending on the routing of your order.
Frequently asked questions
We understand there must be tons of questions you want to ask. Here, we’ve tried to answer some of the questions that we have received while we’ve been setting up the BLBP.
Which wallets can I use to participate in the BLBP?
To participate in the BLBP, you must connect a web3 enabled cryptocurrency wallet to Copperlaunch. Currently, the available options are MetaMask, Gnosis Safe, WalletConnect and Ledger.
Which cryptocurrencies do I need for the BLBP?
In order to participate in the BLBP, you need two tokens: Ethereum (ETH) for gas costs and USDC, ETH, WETH or DAI to exchange for $PATH.
While tokens other than USDC will be accepted for the swap to $PATH, we recommend using USDC directly. The moment you swap using other tokens, you are likely to face a higher price due to slippage costs while converting your token to USDC.
At what price level should I start buying?
This is completely up to you. We can’t give advice as to how much, when or in what way you should be investing. Please note that the price will gradually decrease when no buys occur but it could also be the case that a large volume of buys causes the price to quickly increase.
That said, we recommend that you analyse what happened with previous BLBPs on Copperlaunch like KlimaDAO and GRO to see how their pools charted over time.
What is the minimum amount I can buy?
There is no minimum amount of $PATH tokens that you have to buy. It’s completely up to you to choose how much you want to buy at the price that’s available at that time. However, participating in the BLBP does require you to perform multiple transactions on the Ethereum blockchain, one for approving your tokens and the other for swapping.
Please note that Ethereum transaction fees are fairly high right now, so expect to spend anywhere between $25 and $200 per transaction. Fees depend on how congested the network is and varies hour-to-hour. You can track this via Eth Gas Station or Etherscan.
Will there be a lockup period for $PATH purchased in the BLBP?
$PATH tokens purchased in the BLBP will be freely tradable immediately after the sale as they arrive in your wallet straight after swapping.
What can I do with my $PATH tokens after the BLBP?
We will launch our staking module right after the commencement of BLBP; anyone who holds $PATH tokens will be able to stake their tokens for additional rewards.
$PATH tokens can be staked on https://pathdao.io/stake . On top of staking rewards, stakers who stake before the snapshot on 8th December 2021, 1 pm EST will be given 30% of their staked $PATH tokens from the community pool. (e.g., 10,000 $PATH staked, will receive an additional 3,000 $PATH from the community pool, on top of the typical staking rewards).
On top of that, the $PATH token holds your voting rights in PathDAO, which will come into play when the tokens are launched. Governance forum and voting will be launched in the near future, also.
I have more questions — who can I ask?
If you have more questions about participating in PathDAO BLBP, reach out on Discord or Twitter and we will get back to you as soon as we can.
