DeGate Balancer LBP Participation Tutorial
Hello Everyone, we are about to launch the Liquidity Bootstrapping Pool (LBP) on Balancer to distribute DG tokens. The LBP will start at 14:00:00 UTC on April 10, 2021, and end at 14:00:00 UTC on April 11, 2021. Please note that it will last for 48 hours.
DeGate is a DAO-centric protocol; there are no private offerings in order to honor a fair launch process. Therefore, participating in the LBP token distribution round is an excellent opportunity to acquire DG tokens at the early stages.
Balancer’s LBP is a version of a dutch auction or reverse auction, in other words. The price of DG will drop from high to low if no one buys it as time progresses. Please study how the LBP works before participating and buy within reasonable price ranges.
The LBP allows participants interested in the DeGate project to obtain a large amount of DG tokens in the early stage of the project at a reasonable, fair price, which can significantly increase the liquidity of DG tokens.
This distribution of tokens in a permissionless manner will help DeGate- a DAO-centric protocol- to establish a more robust governance structure. All funds obtained from the LBP will not belong to any team or individual but will be owned by DeGate Home DAO and will be used for the long-term development of the DeGate project under a DAO-centric governance framework.
DG token LBP Parameters
At the beginning of the LBP, we will put in 100,000,000 DG tokens and $880,000 USDC. The initial weight of the DG/USDC trading pair will be 96:4, and the end weight will be 16:84. The auction will end after around 13,000 blocks, almost 48 hours. The start price of DG tokens will be $0.2112. This distribution will release no more than 8.4% of the total amount of tokens. The total circulation of DG token after the LBP round will be 9.4%, taking into account the previous token distribution on IUO (1%)
Meanwhile, we added a protection price on the basis of Balancer LBP. If DG price were to stay below the initial price of $0.2112 for an extended time period, an early termination of the LBP process will occur. In that case, any remaining DG tokens will go back to the DeGate Home DAO.
Please see the table below for details:
The contract address of DG token is: 0x53c8395465a84955c95159814461466053dedede
Steps to participate in the LBP
- Go to the DeGate LBP page（https://degate.com/lbp), and click “Get DG on Balancer” button. You will be directed to the Balancer page.
2. Click the “Connect Wallet” button on the page to log in with your wallet. All wallets in the list are supported.
3. Input the amount of USDC you want to trade. You can also use other tokens you hold, such as ETH or DAI, but may spend higher slippage and transaction fees.
Make sure that you have some ETH in your wallet account for gas fees.
4. Click the “Swap” button. Note that two on-chain transactions might be required, one to approve and another to swap. Thus your wallet might ask you for two confirmations.
5. Once the transaction is confirmed. DG will be immediately available in your wallet. If not listed on your wallet, you can manually add DG token using the token contract address (0x53c8395465a84955c95159814461466053dedede).
Other important matters
1. No front run. Due to the use of a reverse auction mechanism of the LBP, if there are no funds purchasing the token at any given price, the price will continually decrease; hence there is no need to front-run as the buyer will incur even higher costs. A reasonable purchasing strategy is to wait for the price to be in a range that you are comfortable with before the purchase.
2.Take note of gas fees. As Balancer is on the Ethereum network, and current gas fees for Ethereum are high, you should ensure you have sufficient ETH in your wallet account for the gas fees. During the purchase, please set a reasonable gas fee to avoid paying too much for your transaction.
3. Note the slippage settings. Balancer’s default slippage setting is at 0.5%. If your purchase amount is high, please adjust slippage settings accordingly to ensure a successful purchase.
DeGate is an Ethereum layer-2 (L2) native decentralized exchange (DEX) protocol that is formed, governed, and owned by the community as a Decentralized Autonomous Organization (DAO), whereby the token is distributed to the community via a fair-launch process. DeGate protocol will encompass a full-set of exchange-related modules including, but not limited to autonomous-market-making (AMM) functionalities, orderbooks, leverage-capabilities, L1-L2 bridge, fiat on/ off-ramps, and initial-offering capabilities. The governance of the protocol will be conducted via Home DAO and Council DAO.