An How-To Guide to the FLAKE Auction
The what, why, when and how the hottest auction on Avax will work.
At a glance
- Purchase Link: To be updated on Copper Launch on the Avalanche mainnet.
- Start Date: 09-MAY-2022, 15:00 UTC
- End Date: 12-MAY-2022, 15:00 UTC
- Duration: 3 days (72 hours)
- Starting Price: $0.8
- Ending price: $0.2
- Minimum purchase amount: None
- Blockchain: Avalanche
- Initial tokens pooled: 5,000,000 FLAKE : 1,000,000 USDC
- Starting weights: FLAKE 80%: USDC 20%
- Ending weights: FLAKE 50%: USDC 50%
- FLAKE Supply and Distribution
- FLAKE Emission Schedule
FLAKE LBP Details
5% of the total maximum supply of FLAKE (5,000,000 FLAKE) will be auctioned for USDC using our Liquidity Bootstrapping Pool. The auction will take place on Copper Launch, our partner platform and a veteran of LBPs on Ethereum. This will be their first auction on Avalanche and overall the first time the LBP protocol in deployed on the chain.
Hexagon Finance plans to raise initial liquidity to bootstrap its flake pool and provide users with the smoothest experience possible upon launch. The USDC accumulated will then be exchanged by the team for UST.
The auction will start on May 9 at 15:00 UTC and end on May 12 at the same time. All those interested are welcome to join.
Users are kindly invited to join the auction through Copper Launch’s user interface and use USDC to buy Flake. The FLAKE/USDC LBP weights will start at 80/20 and will automatically decline to 50/50 over 72 hours.
What to prepare in advance?
Wallet: Prepare a wallet compatible with the Avalanche C-chain,such as MetaMask, Gnosis Safe, or Ledger.
Accepted Cryptocurrencies: USDC (not USDC.e)
Gas fees: Make sure to prepare enough AVAX in your wallet as gas fees are additional to the amount of USDC required to swap for FLAKE tokens. Having insufficient AVAX in your wallet when carrying out a transaction will result in the transaction failing to complete.
Steps
1. To participate, navigate to Copper Launch on Avalanche and find the FLAKE LBP which will be created specifically for the FLAKE auction.
2. You need to connect a wallet that is compatible with the Copper Launch platform.
3. Once your wallet is connected, make sure you find the FLAKE LBP, select the amount of FLAKE tokens you would like to buy, and proceed as follows:
- Click the “Approve” button on your screen. You will also notice a prompt to allow the Copper Launch to spend your USDC.
- Once you have been approved, the swap button will be shown and you will be able to click “Get FLAKE”.
- You may click the “Settings” button to adjust your slippage tolerance if required.
Note: In the following picture, we are using ‘DARK’ as a testnet token on the Fuji Testnet, just as an example. In the real FLAKE LBP, you should select the FLAKE token.
4. After submitting, wait for the transaction confirmation on the Avalanche blockchain. Once this is completed, you will receive your FLAKE tokens in your wallet.
What to Expect During the LBP?
We would like to take this chance to remind investors that the LBP is not like a regular weighted pool. Users can trade FLAKE throughout the auction and thanks to the weights — see above — the price will start relatively high to disincentivize bots, front-running and speculation. It may then decline or further rise, depending on whether users buy or sell flake.
When an individual completes a trade, the demand will cause the FLAKE token’s price to increase. In contrast, when no one is trading, prices will gradually decrease as the weights change.
Starting at $0.8, the price of FLAKE tokens will gradually decrease if no one is buying. However, if investors jump in, the price of the FLAKE token will rise quickly.
In conclusion, an investor can freely purchase FLAKE tokens at any price they see fit. Eventually, the price will settle at a price the market as a whole finds most suitable.
For a breakdown of the advantages of using this model, we invite users to check our dedicated article.
What to expect after the LBP?
Upon launch, the remaining unsold FLAKE in the LBP paired with the equivalent amount of UST (converted from USDC collected from LBP) will be transferred into an 80/20 FLAKE/UST weighted pool.
Assuming you successfully get FLAKE tokens from LBP:
- First, you will have the choice to immediately trade as there is no lock-up period.
- Second, for holders and long-term believers in the Hexagon Finance platform, we will reward all FLAKE holders with a staking program, which will be launched together with the mainnet on May 16, 2022.
Staked FLAKE will be converted to veFLAKE, and investors will benefit from the distribution of protocol fees, governance rights and boosted rewards in the FLAKE mining pools.
You can check the benefits of staking FLAKE here.
Important links about Hexagon Finance and our LBP
- Introduction: Everything you ever wanted to know about Hexagon Finance
- Website: https://www.hexagonfinance.io
- Docs: https://docs.hexagonfinance.io/
- Medium: https://medium.com/@hexagon_finance
- Discord: https://discord.com/invite/2B9SQENKR7
- Telegram: https://t.me/hexagon_finance
- Twitter: https://twitter.com/FinanceHexagon
- Github: https://github.com/HexagonFinance
About the FLAKE Token
- Token Distribution: https://docs.hexagonfinance.io/the-platform-token/token-distribution
- Token Emissions: https://docs.hexagonfinance.io/the-platform-token/emission-schedule
- Tokenomics: https://docs.hexagonfinance.io/the-platform-token/veflake
About the LBP
What is a Liquidity Bootstrapping Pool (LBP)?
Building Liquidity into Token Distribution
For any further questions, we suggest the community to check our documents, our medium articles or to get in touch with our managers on Telegram and Discord directly.
What is Hexagon Finance?
Hexagon is the premier multi-functional platform on Avalanche, providing users with a unique decentralized exchange based on the Balancer model, a new lending platform and the most innovative way to raise liquidity in crypto — the Liquidity Bootstrapping Pool (LBP).
An official fork of Balancer, Hexagon is incubated by Terraform Labs and supported by both Defrost Finance and Wanchain. Our LBP is operated by Copper Launch.
