Skyward auction of DEIP token begins tomorrow
The auction will take place from April 23 to April 30, 2022.
Below are some key points about the auction process:
- The tokens will be distributed right after the sale ends on May 1
- Listing on DEXs: Ref Finance / PancakeSwap will be created on May 1
- DEIP will be listed on CEX: MEXC (top-20 exchange) on May 5
- All the Skyward auction participants will get a share of an OCT-token airdrop from the Octopus team — total amount 200,000 tokens (±430,000 USD at the time of writing)
- 10% of all funds raised will be donated as humanitarian aid for Ukrainian refugees
Read instructions on how to take part in the sale on Skyward
The IDO on Skyward Finance is different from most IDOs as it’s an auction.
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. Тo 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.
Token distribution on Skyward Finance 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
- Skyward does not allow you to immediately resell the token in the same pool
- Because 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.
