Introducing White Whale’s IDO: THE BOOTSWAP. Because F#&% The Bots!
As we have watched several token launches on Terra in the last few months, we have noticed 2 major problems that continue to occur time after time… First, the initial liquidity pools are just not deep enough. This causes an outrageous manufactured initial price pump, making all the insiders feel really good, but is quite unfortunate for the retail buyer. The second issue is that as soon as the token goes live, all the liquidity at the initial list price is sniped by bots in the first seconds, again screwing the retail buyer and forcing them to buy in at higher levels. At White Whale, we have tried to design an initial token launch model that addresses both of these issues while at the same time bootstrapping our own protocol owned liquidity efforts… we’re calling it “THE BOOTSWAP”
Wtf is a BOOTSWAP? Great Question. Sounds like a Country music line dance… perhaps we can come up with a better name some day, but right now we are too busy building cool sh#$! Here’s how it works, first we will be utilizing the brand new, freshly audited, open sourced LBP code graciously provided to the community by the Astroport team. If you are not familiar with an LBP, or Liquidity Bootstrapping Pool, it is a mechanism for launching tokens originally utilized by Balancer that is designed to defer bot activity by starting the token price high and allowing it to float down to price discovery over a pre-set period of time, say 72 hours. LBP’s are also utilized as fund raising tools as the team provides the initial liquidity at a disproportionate ratio, say (98/2 token/stablecoin) and as the tokens are sold the ratio eventually balances out to whatever target ratio is set by the team in the parameters (i.e. 20/80 token/stablecoin), allowing them to claim the stablecoins and so raise capital from the difference.
This is how it typically works, however at White Whale we are taking a slightly different approach. As you know, we have been signaling our intention to pursue Protocol Owned Liquidity for some time now. That being said, unlike most other LBP events, our BOOTSWAP event will not be a token sale or fundraiser in any way. Absolutely none of the profits from the event will go to the White Whale team or incubating entities. On the contrary, team funds will be deposited into the LBP pool (along with WHALE tokens) initially, and at the end of the LBP event, when the liquidity pool balances at our predetermined ratio of 50/50 UST/WHALE, same as your standard LP token… all of that liquidity will migrate straight to TerraSwap and will serve as the perpetual trading liquidity for the UST/WHALE pair. All of the corresponding LP tokens will be deposited into the White Whale War Chest and be owned by the protocol.
What does that mean effectively? Well, it means a couple things: 1. From its inception, White Whale should own the lion’s share of its own liquidity. That’s right… POL right from the start, and 2. It means that because this is not a sale or raise and all of the funds are going straight into the community owned treasury, there will be no KYC requirements or trading restrictions for this event!
But wait, there’s more… how does this benefit the regular retail buyer if the price already starts high? What if it stays high and never comes down? We’ve thought of that as well. Our goal is to distribute WHALE tokens at fair and honest levels to retail buyers. In order to do so, rather than being another project who under fills our initial pools to manufacture a pump, our plan is to overshoot demand with our initial pool size. That being said, we will be depositing 100 million WHALE tokens into the LBP to start. That’s right, 100 million! Why so many? Because F#&% The Bots. That’s why. We believe this will give everyone who wants to buy liquid WHALE tokens on the first days of trading an opportunity to do so at good levels without all the juicy initial liquidity being stolen by the bots. The starting price will be $1.00, so if bots wanna come snipe, that’s the price they will be sniping at. It will then float down to price discovery over a period of 72 hours, or until the target ratio is met.
So wen launch? We are currently running tests on testnet with our version of the LBP and we plan on launching as soon as possible, like in the coming days. More details to come soon, be sure to follow our twitter for updates…
