XY Finance’s BLBP on Copper Launch — How to Participate
Before the big day, we want to remind you on how to participate in our Balancer Liquidity Bootstrapping Pool (BLBP) to get your hands on $XY Token. In this article, we’re going to share all the information you need to know to participate in the BLBP and acquire your own portion of $XY Tokens. We’ll guide you through the required steps and parameters to navigate our IDO with ease.
Please note: the contract address will be shared through our official channels only; nobody will DM you nor can you purchase $XY Tokens prior to the BLBP.
How does the Balancer Liquidity Bootstrapping Pool (BLBP) Work?
In our initial announcement, we introduced the concept of the BLBP as an innovative mechanism that allows projects like XY Finance to raise funds fairly. Reducing participation risk for our community members and removing flaws as well as hassles of individual caps, whitelisting, and bots.
To ensure all XYers can participate in the BLBP, we want to provide a clear, concise understanding of the process so you can make an informed decision about when, how and what to invest.
Why did we choose a BLBP?
From day one, our community has been vital to XY Finance’s success. We have an incredible army of supporters, which is why when it came to deciding on how to bring $XY Token to life, we felt that there was only one fair way: the Balancer Liquidity Bootstrapping Pool (BLBP).
XY Finance is committed to being a decentralized, community-first project, and this can only be achieved through the widespread distribution of our native tokens. After putting much thought into our initial launch, we hope to prevent volatile price fluctuations if only a small number of participants are in the market. There are dozens of options available in terms of launchpads, staking pools, and more, however, there isn’t a more community-focused way of making it work for everyone. Alternative IDO methods may result in fighting for a tiny allocation, competing with each other, spending thousands of dollars in gas fees, or risking high volatility due to holding IDO/Launchpad tokens. What’s worse, you may have to meet the whitelisting criteria just to receive a tiny allocation while bots and gas wars ruin the fun for everyone.
With the help of BLBP, all XYers can participate in our IDO and choose to invest in big or small amount! Without bots and scripts, the price of $XY Tokens will reflect genuinely across the 72-hour period after the pool’s opened.
What are the possible outcomes?
To be honest, we can’t predict the exact outcome of the BLBP. By raising funds via BLBP, we let the market and our supporters decide what the eventual token price will be and how much we will raise; eliminating any manipulation and ensuring transparency throughout the launch.
To understand a BLBP, it’s important to know what would happen to the token price if no one performed a swap to buy $XY 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 $XY Tokens would slowly decrease to the final possible value.
Based on the response we have received so far, the above scenario is unrealistic as our solid roster of sponsors has faith that there will be strong demand for our native $XY Tokens. There have been many BLBPs hosted over the past year with tokens finding a fair value as a result.
We found the pricing mechanism of BLBP the best as it can better determine a fair token price after analyzing two recent successful launches that happened on Copper Launch: AlphaKlima and Merit Circle.
AlphaKlima — $aKLIMA
Merit Circle — $MC
In the images above, you can see even though there was a price-dropping period, the two projects both achieved price increase successfully and fairly on Copper Launch.
Post-IDO, based on the data from Dextools, the values of $aKLIMA and $MC hit $8,015.60 and $10.59 on November 30th at 15:30 UTC, skyrocketing by 23.78 times and 2.31 times from their closing prices on Copper Launch, respectively.
Based on previous Copper Launch IDOs and community feedback, we think the market can efficiently determine a fair token price via BLBP on Copper Launch. When considering the two IDO’s mentioned above, it’s very likely that $XY Tokens will still be undervalued post-IDO as it’s possible not all investors will participate in Copper Launch and may choose to purchase $XY Tokens once the token becomes available on exchanges.
For those who plan to participate in the IDO, please don’t feel pressured to purchase at the very beginning because users have 72 hours to join in the BLBP. After BLBP is set up, the price will gradually drop or rise based on order flow and it might be better to purchase after a couple of hours once the initial excitement is over.
This is to say, users can choose the best price to purchase $XY Token, and don’t have to pay a high gas fee to fight for the token allocation at the beginning of the IDO.
BLBP Parameters
The XY Finance BLBP will have the following key parameters:
- Start Date: December 9th, 14:00 UTC
- End Date: December 12th, 14:00 UTC
- Sale Duration: 3 days (72 hours)
- Platform: Copperlaunch.com
- Starting price: $5.00
- Initial XY pooled: 8,000,000 $XY Tokens
- Initial USDC pooled: 1,666,667 USDC
- Starting weights: XY 96%: USDC 4%
- Ending weights: XY 50%: USDC 50%
Follow these steps to participate
1.First, head over to the official Copper Launch page created for the XY Finance BLBP, you can also click the following link: $XY Token Launch Auction
2.On the official page, you will have to connect to a compatible wallet. This could be MetaMask, WalletConnect, Gnosis Safe or directly with your Ledger device.
3.After you’re connected, input the amount of $XY Tokens that you wish to purchase and the preferred ERC-20 token you wished to purchase with and select “Approve”.
4.Once you have approved your ERC-20 token, select “Swap.” When swapping, you will have the ability to adjust your slippage tolerance by pressing the “Settings” button underneath the “Swap” button.
5.Your transaction will now start processing. After the transaction is confirmed on the Ethereum blockchain, you will receive your $XY Tokens in your declared wallet. You will see the pop-up button to confirm the transaction details.
When participating in the Copper Launch BLBP, please note the following:
- Always make sure that you have sufficient ETH for gas fees in your wallet
- We have paired $XY Tokens with USDC. You can swap against any supported token you like, but swapping with other assets could result in slippage depending on the routing of your order.
Exclusive 200,000 XY Tokens & 20 GalaXY Kats NFTs Airdrop to Our XYers!
In order to qualify you will need to fulfill the aforesaid two requirements by the snapshot end time and rank among the top 50% of the overall contributors.
XY Finance aims to incentivize and give users more benefits for conducting cross-chain swaps and participating in our IDO. To qualify, you will need to conduct at least one cross-chain swap on the protocol and acquire $XY Tokens on Copper Launch (without selling $XY Tokens) by the end of the snapshot time. See below for the timeline to qualify for the airdrop.
1) Conducting a cross-chain swap on XY Finance, weighted by the volume traded during the snapshot period
- Snapshot starts: 07:30 UTC on December 2nd, after the public launch of Y Pool
- Snapshot ends: Some day after the closing of BLBP
- The score is measured by your total cross-chain transaction volume in USD during the snapshot period (e.g. higher cross-chain swap value increases your score).
2) Acquiring and holding $XY from the BLBP
- Snapshot starts: BLBP on Copper Launch goes live
- Snapshot ends: Some day after the closing of BLBP
- The score is measured by the total amount of $XY Tokens acquired in the BLBP and held until the snapshot ends
- If you sell or transfer $XY Tokens during the snapshot period, you will be disqualified from the airdrop regardless of your ranking among all BLBP participants
Your total score in the airdrop can be calculated below:
After the snapshot, we will calculate the weight of each qualified XYer. The top 50% of the overall contributors, which are calculated based on the score you achieved, will be eligible for the airdrop assuming you didn’t sell and transfer any of your tokens.
We have also decided to airdrop 20 GalaXY Kats NFTs to the top 20 contributors calculated based on the aforementioned formula. Selling $XY Tokens before the snapshot is taken will result in being disqualified for the NFT airdrop as well.
Important Disclaimers
Any foul play will not be accepted, terms are subject to change.
This post is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction, and its content is not prescribed by securities laws.
Due to government regulations, some users are prohibited from participating in the Liquidity Bootstrapping pool Any citizen of or a person domiciled in the United States, Mainland China, Hong Kong, Macau, Taiwan, or a sanctioned country as provided by OFAC.
XY Finance reserves the right to change these terms and conditions at any time without prior notice. In the event that any changes are made, the revised terms and conditions shall be posted on our official social media immediately. Please check the latest information posted on our platforms to inform yourself of any changes.
FAQ
We understand you may have 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.
Q: How many $XY Tokens will XY Finance put into the BLBP?
We have proposed putting 8% of all $XY Tokens into the BLBP. This translates into 8 million $XY Tokens since the total supply is 100 million tokens. As for the unsold $XY Tokens, we will allocate them to liquidity funds. You can find more details about our tokenomics in this article.
Q: Where can I participate in the BLBP?
You can participate by accessing our BLBP page directly on the page set by Copper Launch or directly on Balancer. We will provide the links on our official Twitter & Discord when we launch the pool.
Q: Which wallets are eligible for the BLBP?
To participate in the BLBP, you must connect a Web3-enabled cryptocurrency wallet to Balancer. Balancer currently supports MetaMask, WalletConnect, Portis, Coinbase Wallet, and Fortmatic.
Q: Which cryptocurrencies do I need for the BLBP?
Once you have set up your wallet, you will need to prepare (1) ETH for gas costs and (2) USDC/ETH/DAI to exchange for $XY Tokens.
While tokens other than USDC will be accepted for the swap to $XY Tokens, we recommend using USDC directly. If you swap using other tokens, you are likely to face a higher price as Balancer’s “multihop” across pools will incur transaction costs while converting your tokens to USDC.
Q: At what price level should I start buying?
This is completely up to you. We can’t advise on 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 buy orders causes the price to quickly increase.
Q: What is the minimum amount I can buy?
There is no minimum — you choose how much you want to buy at the prevailing price. However, 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.
The fee is the same regardless of how much you want to buy. This fee does not go to XY Finance or Copper; it is used to pay the Ethereum network validators who verify all transactions and make the Ethereum network run smoothly.
Q: Will there be a lockup period for $XY Tokens purchased in the BLBP?
No, there will be no lockup for XY bought in the BLBP and they will be freely tradable immediately.
Q: Are there any unlocked $XY Tokens that can dump on me?
Only tokens purchased in the BLBP will be in circulation initially. Specifically, the team and private fundraising tokens have a 2 to 3-year vesting schedule with a 4 to 10-month cliff period. The team is building this protocol and community for the long term.
Q: I have more questions — where can I ask them?
If you have more questions about participating in the XY Finance BLBP, reach out on Twitter, Telegram, or Discord and we will get back to you as soon as we can.
