prePO launch — $ARB market is live! 🚀

prePO
prePO
Published in
6 min readMar 20, 2023

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Update: the $ARB market has now ended. You can redeem your positions from the ‘Close’ tab on app.prepo.io.

We’re excited to announce the launch of both our long-awaited platform, and of our first-ever pre-token market, which lets anyone trade the upcoming $ARB token before it goes public! 🔥

This is an accelerated launch specifically for the $ARB pre-token market — in the background, we’ll continue shipping improvements, new features, and conducting ongoing comprehensive testing.

How to Participate 👇

  1. Get ETH on Arbitrum
  2. Deposit ETH
  3. Trade $ARB

Important Details 👀

  • What: Arbitrum ($ARB) pre-token market
  • When: Now!
  • Where: app.prepo.io
  • Network/Chain: Arbitrum (of course!)
  • Deposit Currency: ETH (automatically converted into wstETH)
  • Minimum Deposit: None
  • Deposit Cap Per User: ~2 ETH (1.795 wstETH)
  • Global Deposit Cap: ~100 ETH (89.75 wstETH)
  • Net Deposit Rebate: +2% (200 basis points fee, rebated 200% in PPO)
  • Global Withdrawal Limit: 5 wstETH per 3 days (as a short-term security measure)
  • Net Withdrawal Rebate: +1.5% (300 bp fee, rebated 150% in PPO)
  • Portfolio Yield: ~5.2% APR (see Lido’s site for up-to-date estimate)
  • Eligibility: Everyone (after agreeing to the terms shown in the app)

Market Parameters 💸

Below are the parameters for the $ARB pre-token market:

  • Valuation range: $5B — $25B (Fully-Diluted Valuation)
    (corresponds to $0.50 to $2.50 price range)
  • Payout range: ~16.67% to ~83.33%
  • Settlement date: After end of March 30th 2023 UTC
    (1 week after the $ARB token is claimable; allow a small buffer for calculating & submitting the settlement valuation)
    Update: market is now settled.
  • Settlement valuation: Average of daily Open & Close price on the top 2 exchanges by ‘Liquidity Score’ for $ARB on CoinMarketCap, for the 7 days after $ARB is claimable, converted into FDV. If CoinMarketCap is not usable as described, the top 2 markets as default ranked by CoinGecko on the $ARB token page will be used instead.
    Update: market is now settled, at a final price of $12.492B FDV ($1.2492). You can redeem your positions from the ‘Close’ tab on app.prepo.io.

To understand what this means for your potential PnL,
try the Profit Simulator on the trade page.

To learn more about market mechanisms, check out our documentation.

Features Coming Soon ⏭

Some of the upcoming features to look forward to over the coming weeks:

  • Deposit & trade in one step
  • Trade history
  • Trading fee rebates
  • Custom simulator page
  • Position profit/loss tracking
  • Various UX enhancements

FAQ❓

[NEW] How do I redeem my position?
Since the market is now settled, you can redeem your positions from the ‘Close’ tab on app.prepo.io.

What is prePO?
A decentralized trading platform allowing anyone to go long or short on pre-public assets, such as pre-IPO stocks and pre-IDO tokens.

What is a pre-token market?
A prePO market for speculating on a pre-public token. Pre-token markets could include crypto projects speculated to launch a token in future via an airdrop or IDO, or tokens that already exist but aren’t yet tradable.

How can I trade the $ARB pre-token market?
Follow the steps outlined above in the section “How To Participate”.

Can I close my position at any time?
Yes! You can close your position at any time before settlement. At settlement time, you’ll be able to redeem your position directly according to that final settlement valuation.

Will the $ARB market still be tradeable after $ARB becomes tradeable?
Yes, because the settlement valuation is determined based on the 7-day average FDV after $ARB launches. After the settlement valuation is provided, you’ll be able to redeem your position directly according to that final settlement valuation.

What is the $ARB token airdrop?
$ARB is an upcoming token set to launch on March 23rd. According to the Arbitrum Foundation, $ARB will mark Arbitrum’s official transition into a decentralized autonomous organization (DAO), meaning ARB holders will be able to vote on key decisions governing Arbitrum One and Arbitrum Nova.

Are there any limits on how much I can trade?
There are no limits on trading amounts, only on deposits via deposit caps.

Can I be liquidated?
No. prePO positions are fully-collateralized by wstETH, so liquidation is impossible on our platform.

Why are there deposit caps?
Deposit caps primarily exist as a safety mechanism to limit the amount of funds at risk in case of a security incident. Deposit caps also reduce volatility in prePO markets. As confidence grows in the protocol, and as protocol-owned liquidity increases, we expect that both the Deposit Cap Per User and Total Deposit Cap will be increased over time.

Why is there a Global Withdrawal Limit?
The Global Withdrawal Limit restricts the amount of funds that can quickly leave the system, which provides protection of your deposited funds in the case of a security incident. As confidence grows in the protocol, we expect that the Global Withdrawal Limit will be made less restrictive over time.

Can I withdraw at any time?
Yes, subject to the Global Withdrawal Limit and any other safety mechanisms that may be introduced.

Are my funds safe?
Although we have been audited, and have security mechanisms in place to mitigate potential risks, no project or protocol is completely safe, and security incidents are always possible. As such, please do not risk more than you can afford to lose.

What happens if there is a security incident resulting in the loss of funds?
If this scenario ever occurs, we will do our best to recover any lost funds. However please note that the prePO treasury will not act as a backstop for any lost funds, and you are participating at your own risk.

What are PPO Rebates?
PPO Rebates are platform rewards in the form of PPO tokens, designed to cover partial, full, or even exceed any fees associated with using our platform.

What is the purpose of PPO Rebates?
By offering PPO Rebates, we aim to boost key metrics, such as user count, TVL, volume, and revenue, all while ensuring that our valued and active users receive a meaningful share of PPO tokens.

Can I check what amounts and rewards I will receive in advance?
Yes! You can input different amounts on the Deposit or Withdraw pages (even before deposits open) to see the estimated ETH value and PPO rewards that you will receive.

Will fees and rebates ever change?
Yes, fees and rebates are subject to change in future. These parameter values will be driven by feedback, experiments, and other data. Automated crowdsourcing of parameter values based on PPO token holder votes is also on the roadmap.

What is wstETH? Why are deposit caps and withdrawal limits denominated in wstETH?
wstETH, short for Lido Wrapped Staked ETH, is a token that represents ETH that has been staked in order to earn yield. Learn more here.

Your ETH is automatically swapped for wstETH before being deposited, because prePO’s collateral and markets are all denominated in wstETH.

Will my deposit show in my wallet (e.g. MetaMask)?
Yes (if you manually add it), however we recommend just viewing your balances more conveniently on app.prepo.io.

Will I need ETH to pay for gas (transaction costs)?
Yes, you will need to keep a small amount of ETH to pay for the gas (i.e. transaction costs) associated with your deposit and future actions on the platform.

Transactions on Arbitrum are relatively cheap, and 0.005–0.01 ETH should be more than enough to cover future gas costs for most users (check here for up-to-date transaction cost estimates).

Which pre-public market is coming next?
To be announced! 👀

About prePO 🔮

prePO is a decentralized trading platform allowing anyone to go long or short on any pre-IPO stock or pre-IDO token.

prePO’s mission is to democratize pre-public investing — transforming a world of financial exclusion into a world of permissionless access.

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