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Bootstrapping Pendle Liquidity

On 28 April 2021, we will be conducting an event to bootstrap liquidity for the Pendle token, PENDLE. The event will run for 6 hours, from 12:00 UTC to 18:00 UTC at Pendle’s LDB webpage.

To help prevent enthusiastic community members from getting punished for early participation, we’ve opted to forgo a traditional LBP. Instead, we’ve designed a hybrid approach, drawing inspiration from Sushi/Uni pools, and the traditional Balancer LBP. An approach we’re calling Liquidity Drop Bootstrapping (LDB).

More details below — please note that until the event, there will be no PENDLE tokens in circulation. No one from the Pendle team will contact you privately about PENDLE.

Event Overview

  1. A 50:50 balancer pool will be launched, seeded with a combined $1,800,000 ETH and PENDLE.

2. Only the Pendle team will be whitelisted to add liquidity to the pool.

3. PENDLE liquidity will be continually added during the first 10 minutes of the event to allow everyone a decent opportunity to swap.

The total PENDLE liquidity added over the first 10 minutes will equate to 1.5x the private round price if no swaps are made.

4. Random single-sided PENDLE liquidity drops will be added to the pool over the course of the next 6 hours.

5. Price discovery will be left to the market, with the liquidity drops acting as discount opportunities throughout the course of the bootstrapping event.

Our sole objective here is to distribute and bootstrap liquidity for PENDLE. As such, we will be putting in place trading fees and other measures to disincentivize bots from buying and selling opportunistically.

After the event ends, the Pendle team will pause the Balancer pool and seed a Sushi pool with liquidity based on the ending price. Pool 2 incentives will be announced at a date closer to main-net launch.

Token Distribution

Our goal with our token distribution is to provide everyone with a reasonable chance of participating in and owning a percentage of the PENDLE ecosystem. This goal was also reflected in our private sale, which was distributed in a way that the majority of investors each hold under 0.4% of the token supply.

This liquidity event will result in a float of 16% of the year 2 total supply when combined with the Ecosystem Fund. This ensures that price discovery will be meaningful and that the community will not bear crushing inflation after launch. Team and investor tokens will remain locked, meaning only tokens released during the LDB will trade.

Moving Forward

We will provide more details on the liquidity drops closer to the event to reduce the likelihood of bots exploiting the system.

While we’re striving to provide an open playing environment, volatility is to be expected so we encourage all participants to DYOR, have a game plan, and ape responsibly.

For those interested in the upcoming Liquidity Event, it is highly recommended to be in the Telegram Announcements Channel and/or our Discord channel.



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