The Spool ‘How To’ LBP Guide
The LBP Fair Launch marks the first milestone in the step-by-step protocol launch over the next couple of months, accompanied by multiple running audits as well as an extensive bug bounty planned.
The LBP will be holistic. 100% of the proceeds will be transferred to the Spool DAO Treasury which will be governed by the Spool DAO token (SPOOL).
This article provides the details of the LBP, and serves as a guide on how to participate in the fair launch event.
· The SPOOL Fair Launch Event
∘ The Spool Fair Launch Event Details
· If This is Your First Time on Ethereum…
∘ 1) Set up a Wallet
∘ 2) Get DAI Ready on Ethereum*
∘ 2b) Get ETH Ready
∘ 3) Participate in the Token Launch Auction
· Buying SPOOL on Copper Launch
∘ 1. Go to LBP.Spool.Fi to verify the Copper URL and information
∘ 2. Click on the ‘BUY SPOOL on Balancer via Copper’ Button
∘ 3. Check the Current Price of SPOOL
∘ 4. Connect your web3 wallet to the Balancer page
∘ 5. Enter the amount of DAI you would like to swap for SPOOL
∘ 6. Approve Your Tokens for Swap
∘ 7. Click the “Buy SPOOL” Button to Swap for SPOOL Tokens
∘ 8. Wait for your transaction to confirm on the blockchain
∘ 9. Congratulations! You are now a Spool DAO member. Welcome to the community!
· So, What’s The Best LBP Strategy?
· About Spool
The SPOOL Fair Launch Event
The SPOOL LBP is the first public offering of SPOOL tokens and the only opportunity for the community to purchase tokens prior to product launch.
The Spool Fair Launch will run for 3 days:
Beginning at Dec 13, 2021 at 17:00 UTC
Ending on Dec 16, 2021 at 17:00 UTC
For more information on the reason for the LBP, please revisit our LBP announcement.
For more information on the function of Balancer LBPs, please visit this blog.
The Spool Fair Launch Event Details
Where — Copperlaunch
Start — Dec 13, 2021 at 17:00 UTC
End — Dec 16, 2021 at 17:00 UTC
Duration — 72h
Token Ticker — $SPOOL
Official SPOOL token contract address 0x40803cEA2b2A32BdA1bE61d3604af6a814E70976
LBP Base Pair — SPOOL/DAI
SPOOL Max Supply — 210,000,000 SPOOL
Initial SPOOL liquidity provided — 10,500,000 SPOOL
Initial DAI liquidity provided — 1,050,000 DAI
LBP Weights — Starting at 96:4 and will gradually adjust to 50:50
SPOOL LBP Starting price — 2.4 DAI
Balancer Swap Fee — 2%
If This is Your First Time on Ethereum…
1) Set up a Wallet
Crypto natives can skip this step, but if this is your first endeavour in the blockchain space (welcome!), you will need to install and set up your ETH wallet.
There are many wallet solutions and advanced users can use any wallet supported by the Ethereum network. In this how-to we will be using the popular MetaMask solution.
Note that, although this piece of software is called a ‘wallet’ it doesn’t actually hold your funds. Your funds are stored on the blockchain, your wallet holds the keys to this storage. Losing the ‘private key’ or the seed phrase used to generate it, may lead to loss of your funds. We strongly recommend reading MetaMask’s FAQ, especially the section on security, as well as MetaMask’s privacy and security support documentation.
Never, under any circumstances, give your private key or your seed phrase to anyone, including the Spool community or DAO members. Be careful of scams. Spool will never ask for your private key or seed phrase.
2) Get DAI Ready on Ethereum*
To participate in the launch you will need ERC20 DAI tokens to exchange for SPOOL and ETH to fund the gas for the transaction. Please use your preferred CEX or DEX to acquire $DAI. You are able to acquire DAI on most major exchanges, such as Binance, Coinbase, FTX, Kucoin, etc…
*Please note that you may also purchase SPOOL with assets other than DAI if they are sufficiently liquid on Balancer. In theory, all major assets such as other stablecoins, ETH, and wBTC will work, but will likely consume more gas and transaction fees than using DAI directly.
2b) Get ETH Ready
Once you have acquired ERC20 DAI you will need some ETH for transaction fees on Mainnet.
3) Participate in the Token Launch Auction
Buying SPOOL on Copper Launch
1. Go to LBP.Spool.Fi to verify the Copper URL and information
Read over the “FAQ” and “How To” for more details.
2. Click on the ‘BUY SPOOL on Balancer via Copper’ Button
Keep in mind that the LBP finds a fair market value by starting at a relatively higher price and lowering the price over time by adjusting the weight ratios if there are no purchases.
3. Check the Current Price of SPOOL
You can check the current price of the SPOOL token on the Copper Launch site as well as the Spool Fair Launch page.
If the price isn’t agreeable to you, you can wait to see if others feel the same way. If no purchases are made, the price will decrease overtime.
4. Connect your web3 wallet to the Balancer page
E.g. Metamask, Math wallet, Hyperledger etc.
5. Enter the amount of DAI you would like to swap for SPOOL
Input the amount of DAI you would like to swap into the field and Copper will estimate the amount of SPOOL tokens you should receive.
You can use other currencies that are supported by Copper/Balancer, but you may want to use DAI to minimize your potential slippage. Any other token will be routed through Balancer to be converted to DAI first before swapping to SPOOL tokens on the LBP. Ensure that you have enough gas to complete the transaction and ensure you account for increases in gas fees due to potential network congestion.
6. Approve Your Tokens for Swap
Before you can swap your ERC20 tokens for SPOOL, you must approve the smart contract to interact with the tokens in your wallet. This will cost gas.
7. Click the “Buy SPOOL” Button to Swap for SPOOL Tokens
If you are satisfied with the estimated number of SPOOL tokens you will receive for the swap, click the “Buy SPOOL” button to submit a transaction.
8. Wait for your transaction to confirm on the blockchain
Once the transaction is confirmed, the SPOOL tokens will enter your wallet.
Please keep in mind that trading ERC20 tokens (such as DAI or SPOOL) on Copper requires two transactions: in the first transaction you give Copper approval to withdraw DAI from your wallet and in the second transaction is the actual swap.
If your transaction fails because the price moved outside of your slippage tolerance, you can increase your slippage limit by clicking the Cog icon to the top right of the trade window and adjust the slippage to a number that you would be comfortable with.
9. Congratulations! You are now a Spool DAO member. Welcome to the community!
When the Spool protocol launches, you can use this token to vote on the governance of Spool and get access to other benefits when they are available. Be sure to add SPOOL as a custom token on your web3 wallet.
So, What’s The Best LBP Strategy?
The strategy you adopt will depend on your own requirements, however there are some basic rules to follow.
Bear in mind that LBPs are a price-finding mechanism, so the price is relatively higher initially but may fall quickly if no trades are being made. You may want to consider factors such as the Fully Diluted Value (FDV) of all tokens and compare to some other projects that you feel have a similar value proposition. It pays to be cautious and not let emotions get the better of you. Participation in a LBP requires a degree of patience.
The Balancer LBP is an Ethereum smart contract, so it will cost gas fees. While you can make as many transactions as you like, it will cost gas every time. Making many trades will likely increase your expenses and thereby overall cost of tokens, but Dollar Cost Averaging (DCA) may be a viable solution if you plan on contributing a significant amount to the LBP.
Remember to adjust your gas settings to ensure that the transaction completes in your required timeframe. If you set the gwei too low another transaction could take place ahead of yours, and the price could be significantly different from the one you saw when you initially executed the transaction.
That’s it! If you have any further questions feel free to reach out to us in the community channel here.
Spool is a permissionless DeFi middleware ‘toolkit’ that allows users to create fully customised, automated, and diversified yield farming portfolios with a single deposit.
Select your favourite yield generators from a list of supported protocols and create a diversified portfolio based on your individual risk appetite… All accessible through a single deposit address.
After depositing, Spool automatically manages deposits to optimize risk/reward for individual users within the given terms under which their capital was deposited — Spool regularly rebalances liquidity between yield generating DeFi protocols, while taking individual user’s risk tolerance and array of selected strategies into account.
Spool represents the next evolutionary step for DeFi on Ethereum by allowing for diversification, compounding, and rebalancing at affordable gas prices via a buffer system and transaction batching.