APY.Finance TGE on Balancer’s LBP (Liquidity Bootstrapping Pool)

Will Shahda
Oct 29, 2020 · 6 min read
APY.Finance Liquidity Bootstrapping Pool (LBP)

Summary

  • ~2.6M APY tokens will be available on Balancer’s Liquidity Bootstrapping Pool (LBP) on November 5, 2020 at 9:00 EST or 14:00 UTC.
  • The LBP will run for 48 hours, ending on an exact block number to be announced.
  • 🚨 The Balancer LBP is not like a regular Balancer pool. The price will start very high to disincentivize bots, front-running and speculation. Over time, the price will automatically decrease by design. IMPT: DO NOT PURCHASE APY TOKENS TOO EARLY OR YOU WILL GET REKT.🚨
  • Questions? Please jump on our Telegram or Discord.

After careful consideration of various IDO (Initial DEX Offering) options, APY.Finance is excited to launch the APY token via the Balancer’s Liquidity Bootstrapping Pool.

In this post, we outline what the Balancer LBP platform and how to participate in the APY.Finance IDO.

APY.Finance Quick Recap

What is APY.Finance?

  • APY.Finance automates yield farming to get users the best, risk-adjusted returns in DeFi. APY.Finance smart contracts continuously route your funds to the latest-and-greatest yield farming strategies.
  • We began distributing tokens to our community via the liquidity mining rewards program. In the first hour, the community deposited $67M.
  • Read the litepaper and token functions.

What is a Balancer LBP (Liquidity Bootstrapping Pool)?

A standard Balancer pool is a customizable Uniswap-like protocol that supports up to 8 assets in the pool with preset weights.

Balancer’s Liquidity Bootstrapping Pool (LBP) is a special kind of Balancer pool that automatically adjusts its pool weights over time. This applies downward price pressure on the token and disincentivizes bot front-running, speculation and whale buying.

Ultimately, we believe this approach lives up to the DeFi ethos and results in a fair distribution for the following reasons:

  • No fomo: the declining price mechanism of the LBP allows interested users to wait until they are comfortable with the price before acquiring tokens. No need to rush or fomo in.
  • No bots front-running: Because the price declines over time by design, bots are also disincentivized to front-run or snipe transactions. If a bot purchases APY tokens immediately at the start of the LBP, the changing pool weights will cause the APY token price to drop below initial acquisition price.
  • Price discovery: similar to a Dutch auction, users have a long time window to acquire tokens at a price they find attractive. The community then collectively decides over the 48 hours what the final valuation will be.

Below is a graph that shows the APY:USDC pool weight starting at 90:10 (with a high APY price) and declining to 30:70 (lower APY price) over ~48 hours.

LBP Pool Weights over Time

Below is a graph of the APY token price over the 48 hours of LBP if no buy orders are executed.

The price will automatically adjust downwards but users can also poke the contract manually if they wish.

To read more about the Balancer LBP basics and structure, feel free to check out the original Balancer article and Balancer LBP FAQ.

Click here to see LBP price simulations.

IDO Details

  • ~2.6M APY tokens
  • Balancer LBP opens on November 5, 2020 at 10:00 EST or 14:00 UTC.
  • Balancer LBP will run for 48 hours, ending on an exact block number to be announced.
  • 🚨IMPT: DO NOT PURCHASE APY TOKENS TOO EARLY OR YOU WILL GET REKT.🚨
  • Stay tuned for a detailed user guide on how to acquire tokens with the LBP.

Post-IDO

  • After the LBP IDO, a new pool will be seeded with the latest price. Stay tuned for links to the official pool.
  • APY.Finance will incentivize liquidity to the pool via APY rewards. Details to be announced.

How do I participate?

Check out our step-by-step guide on how to participate.

FAQ

  • When should I buy APY tokens?

Do not buy APY tokens immediately or you will get rekt as the LBP price starts high and declines over time. We recommend participants to divide their budget into smaller chunks and dollar-cost average at valuations comfortable to them. We also recommend users to only acquire tokens for governance.

  • Is it easy to buy APY tokens through the Balancer LBP?

Yes, you can transact using the same UI on https://balancer.exchange as you would purchase any ERC-20 token. Stay tuned for a step-by-step guide with screenshots.

  • What is the team vesting?

The team is committed for the long-term success of the project. As such, the team has adopted a 4-year vest with a 1-year cliff on all tokens.

  • Who are the early investors in APY.Finance?

Early investors include Arrington XRP Capital, Cluster Capital, Coingecko, the LAO, Genblock Capital and Alameda Research who is strategically partnered with FTX. Strategic angels include Santiago Roel-Santos, Andrew Kang, George Lambeth and Mick Hagen.

  • Will early investors be able to sell into the LBP?

No, early investors will not receive their Month 1 tokens until after the conclusion of the LBP. Furthermore, a majority of our seed investors have pledged to lock up their initial distribution for 1 year as a sign of confidence in the long-term goals of APY.Finance.

  • Does the high start price mean that early investors lock in big multiples on their investment?

No, the initial LBP price is purposefully set high to discourage fomo buying, bots and to enable better price discovery. The starting price does not indicate any realized multiple for early investors.

Furthermore, early investors will not receive their tokens until after the conclusion of LBP.

  • When do early investor allocations unlock?

Early investor allocations are vested for 1 year (17.5% on Month 1, 7.5% each month thereafter). The majority of seed investors have pledged to lock their Month 1 tokens for 1 year. Non-pledged Month 1 tokens are unlocked shortly after the end of the LBP IDO.

  • When are liquidity mining rewards unlocked?

Liquidity mining rewards are unlocked shortly after the end of the LBP IDO.

  • When will the alpha launch be released?

The alpha launch will be released in the next couple months. It is currently undergoing development and testing.

Acknowledgments

We would also like to thank Perpetual Protocol for being pioneers of the first successful LBP and graciously sharing their various LBP simulation models.

Disclaimer

The information provided in this Medium Post pertaining to the DeFi Labs, Inc. (“APY.Finance” or the “Company”), its business assets, strategy, and operations, 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. Information contained in this Medium Post should not be relied upon as advice to buy or sell or hold such securities or as an offer to sell such securities. This Medium Post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. APY.Finance and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and APY.Finance expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. APY.Finance reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this Medium Post supersedes any prior Medium Post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither APY.Finance nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this Medium Post by you or any of your representatives or for omissions from the information in this Medium Post. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this Medium Post.

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Will Shahda

Written by

Solidity Engineer and Founder of APY.Finance.

APY.Finance

APY.Finance finds the best, risk-adjusted yield for traders by fully automating crypto yield strategies. Traders can easily access the latest, most innovative crypto markets with just a few clicks.