Impossible x Humanode Buy-back Protection Program

Published in

Impossible Finance

6 min readMar 27, 2023

Hi Penguins,

The purchase period for Impossible IDO #18 Humanode is currently underway! If you have participated in the token sale by staking IDIA or vIDIA, or if you are a whitelist allocation winner in one of our marketing campaigns, now is the time to purchase your HMND allocations!

The purchase period will end on 28/03/2023 2:00 PM (UTC), so remember to purchase your HMND tokens before then.

As part of Impossible’s continued efforts to ensure the protection of our community, we are thrilled to announce Impossible has secured a token buy-back protection program (“Program”) for Humanode participants. Only users who participated in Impossible’s Humanode token sale (“Token Sale”) can access the downside protection. Kindly refer to section “2. Who is eligible to participate in the Program?” for more information on eligibility.

Through our close partnership with the Humanode team, we are confident they will deliver on their protocol, roadmap and vision of becoming the first-ever human-based verification layer in this space. This token buy-back protection conveys the same confidence to all those who have participated in the Token Sale.

The Impossible Buy-back Protection Program Details

1. How do we protect users?

Simple Explanation

Humanode has pledged, on-chain, to buy-back your HMND tokens at a price of US$0.1125 / valuation of US$45,000,000 or approximately 25% from the Token Sale price, subject to the conditions below.
This means that if you are eligible (meeting the conditions under Q2), you can sell back the amount of HMND tokens purchased during the Impossible Launchpad sale, thus protecting you from potential downside price risk of HMND, 6 months after full token unlock (i.e. 8 months after TGE).

Technical Explanation

Under the Program, eligible users may sell back the HMND token, subject to the conditions set out below:

Impossible Finance reserves the right to not activate the Program or run it on OpenSwap, if the market price of the token is expected to be above the buy-back price during the buy-back valid time period.

2. Who is eligible to participate in the Program?

Users who are eligible for the buy-back program consist of “eligible users” who are users whose wallet addresses participated in the Token Sale. Under the Program, eligible users can only sell back the tokens, which were bought during the Token Sale and held at the same wallet address used in the Token Sale (“Sale Wallet”) until the Buy-Back Valid Time.

To clarify, users who are NOT eligible for the buy-back program consist of:

Users who transferred their tokens to any Centralized Exchange (“CEX”)
IDO participants who staked under the Coin98 Unlimited Sale (as the Program only covers participants who have staked using IDIA or vIDIA)

Unless otherwise provided by the scenarios above, the tokens that have been sold or transferred out of the Sale Wallet are not eligible for buy-back under the Program. For example, if $100 of tokens were bought in the Token Sale and only $40 were held until the Program starts, only $40 can be sold back in the Program. However, eligible users are not disqualified if they transferred out tokens for the purpose of participating in a Humanode liquidity pool on Decentralized Exchanges (“DEXs”) to be announced. This is to ensure fairness among the strong stakers, LPers, and HODLers of the community.

Impossible Finance and the project team reserve the right to modify the eligibility conditions before the buy-back valid time period, and will notify the community if so modified. Eligible users may contact the Impossible Finance team if they believe there is any error in the number of tokens they could sell back under the Program.

Note that OpenSwap may charge users a small fee to complete the buy-back process.

3. When can I use this?

Subject to the above conditions under Q2

Example 1 — Forgo the buy-back because HMND price goes up

Mar 2023 — Token Public Sale Price = US$0.15

User Wallet 1 — Buys 100 HMND tokens = net worth US$15
User Wallet 2 — Buys 1000 HMND tokens = net worth US$150

Nov 2023 — Token Market Price = US$0.21 (price increased 40% from IDO)

User Wallet 1 — Eligible to sell 100 HMND at US$0.1125 but will forgo the buy-back as the price is US$0.21 = net worth US$21
User Wallet 2 — Eligible to sell 1000 HMND at 0.1125 but will forgo the buy-back as the price is US$0.21 = net worth US$210

Example 2 — Participate in the buy-back because HMND price goes down

Mar 2023 — Token Public Sale Price = US$0.15

User Wallet 1 — Buys 100 HMND tokens = net worth US$15
User Wallet 2 — Buys 1000 HMND tokens = net worth US$150

Nov 2023 — Token Market Price = US$0.09 (price fell 40% from IDO)

User Wallet 1 — Eligible to sell 100 HMND at US$0.1125 = US$11.25
User Wallet 2 — Eligible to sell 1000 HMND at US$0.1125 = US$112.50

Users above lose 25% — avoid losing an additional 15% because they are protected.

4. Mechanism: How can you access the program?

We will be implementing the buy-back mechanism on OpenSwap’s whitelisting limit order feature. OpenSwap was Impossible’s second IDO project, and we are firm believers to continue helping our past and present projects to integrate together to build a stronger Impossible ecosystem.

The OpenSwap feature that allows us to make this program a reality is called “Buyback Queue”. The feature is audited by CerTik, and transparent on-chain for users to see the buy-back protection. You can read more about the mechanism here.

5. Fundraise Custody

For transparency, 75% of the proceeds of the Token Sale (“Proceeds”) will be held in a multisig wallet protected by both Humanode and Impossible Finance council members to fund the Program. Address may be publicly shared later.
The remaining 25% of the Proceeds will be returned to Humanode after the sale completion so they can use it to build out their ecosystem.

6. Why are we doing this?

At Impossible Finance, we want to set the tone for what Launchpads should be. We treasure our community, first and foremost. We aim to find the best crypto opportunities for you and at the same time try to protect you against risks.

By reserving part of the Proceeds to fund the Program, we are actually taking the first step in creating something mentioned in our original whitepaper, the SSIDO — a self-sustaining IDO.

While the funds are held in escrow and the team works to deliver on its milestones, they can also be used to earn yield in safe DeFi protocols, allowing for projects to build with confidence and garner support from the community. The community then has peace of mind in knowing that their hard-earned dollars are being put to good work and not just distributed to project teams that could run away with funds. We now have run a few Programs and we believe it’s a good way to make sure all users have less risk when backing those who are BUIDLers.

About Humanode

Humanode is the first crypto-biometric blockchain where one human = one node. Instead of PoW or PoS Humanode is built on Proof-Of-Uniqueness and Proof-of-Existence of human beings. To deploy a node a validator must go through private biometric authentication (Facial recognition and Liveness Detection AI) that verifies his uniqueness and existence through computer vision. A public permissionless financial network based on consensus between human nodes who share the fees and ownership of the network in an equal manner. Joined by 10k+ unique validators.

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About Impossible Finance

Impossible Finance is the go-to crypto investment platform that empowers you with high-quality, fair and accessible crypto opportunities. We simplify DeFi so you can enjoy fairer investing, cheaper trading and better yields through our accelerator, launchpad, and swap platform.