DEIP IDO guide: How to take part in the sale on Skyward
The first IDO round on Boca Chica sold out in a few seconds flat. And we are glad to release the guide on how to participate in the round 2 of DEIP IDO on Skyward Finance.
The IDO on Skyward Finance is different from most IDOs as it’s an auction.
First we’ll explain how to buy DEIP on Skyward.
Below you’ll be able to find the details on how the auction works.
First of all, you need to create a NEAR wallet, as DEIP IDO will be held on NEAR blockchain.
Create a wallet on NEAR (https://wallet.near.org/)
Get NEAR coins:
- You can buy them with fiat currencies via MoonPay
- Alternatively, you can buy NEAR on major crypto exchanges, including Binance, Bybit, Kucoin, Gate.io, Huobi and transfer your NEAR to the NEAR wallet you’ve created
Congratulations! Now you have NEAR to participate in DEIP’s IDO on Skyward Finance!
To buy DEIP with your NEAR on Skyward Finance you’ll need to:
- Go to https://app.skyward.finance/sale/94
- Connect your NEAR wallet
- Scroll down and click on Deposit NEAR
- Enter the amount of just click MAX to buy on maximal amount and click on Depost NEAR to exchange to DEIP
- After the sale start on Apr 23, click on Claim DEIP to receive your DEIP tokens
Here’re you’ll see the price of DEIP based on demand as of now:
Note: the price will be changing based on demand with price discovery happening every second.
You can claim DEIP anytime during the Sale period
Here’re the details on how the Auction functions:
The price discovery mechanism of Skyward Finance
As an auction mechanism, token prices on Skyward are determined by demand and are not fixed beforehand. This means that rates are dynamic and can even change during the sale.
From the buyer’s point of view, a sale will look like this:
1) To purchase $DEIP: you deposit, for instance, 100 $NEAR into the contract for the sale before it starts.
2) You will see that depending on the demand, the expected swap ratio for $NEAR : $DEIP will change.
For example:
On April 20, 118,197 $NEAR tokens were deposited for the sale on April 23. This made the expected rate 1 $DEIP = 0.472767 $NEAR. As of April 21, 256,205.7 $NEAR tokens have been deposited, making the expected rate 1 $DEIP = 1.024822 $NEAR.
3) Once the sale kicks off, your deposited $NEAR will automatically change into $DEIP. But instead of getting your total sum of $DEIP at once, you will accumulate $DEIP throughout the entire duration of the sale. This is because the auctions for $DEIP occur per block, which is about 1 second. On your screen, you will see the amount of $DEIP received continuously go up. You will have received the final amount corresponding to your total deposited $NEAR by the end of the sale.
4) As the sale goes on, new people can join, while existing participants can modify the amount of $NEAR they commit, or withdraw from the sale altogether. Hence, it is called a “streaming auction”.
5) Because the total demand for and remaining supply of $DEIP can change at any time, the price of $DEIP can also change throughout the course of the sale. As your $NEAR is gradually converted into $DEIP, the rate will be determined by the demand at the time of auction.
6) After 7 days, the sale ends.
We thus see that on Skyward Finance token distribution is split over time, and the auction itself is split over the duration of a single sale. Because the sales are not instant, bots simply do not have an advantage over human buyers in terms of reaction time. This is why Skyward claims that its price discovery mechanism is bot resistant.
Additionally, this mechanism prevents price manipulation schemes (“pump and dump”) because (1) Skyward does not allow you to immediately resell the token in the same pool, and (2) since prices are dynamically determined by demand, withdrawing your order to artificially pump a price will actually drop the price compared to what you initially paid. This is why Skyward claims that it allows for fair token launches and price discovery.
