SUPERALGOS TOKEN

Bootstrapping the Market for the Superalgos (SA) Token

Let’s all support the community effort to bring the project’s native token to the PancakeSwap DEX!

Julian Molina
Superalgos | Algorithmic Trading
7 min readOct 26, 2021

--

The community’s choice for the first listing!

My latest marketing post discussed some strategic objectives for 2022 and bootstrapping the mechanisms to grow the collaboration was first in line. In this post, we will discuss the community’s latest great achievement: the listing of the Superalgos (SA) Token on PancakeSwap! Let’s talk about how we can help turn this effort into a great success for us all!

You may also want to check this other post where I explain How to Add Liquidity to Superalgos (SA) Pools in PancakeSwap.

A Community Effort

Listing the token, like everything else within Superalgos, is a community effort. Holders of the Superalgos (SA) Token are in a unique position to contribute to this line of project development, as listing the token requires providing liquidity — a task only available to token holders.

Superalgos doesn’t sell tokens. The project distributes tokens solely to reward contributions.

For that reason, the project does not provide liquidity to any listing or market. It is the community of holders that engages in listing the token and providing liquidity.

A few community members have taken the first steps and have created several Liquidity Pools for the Superalgos (SA) Token in PancakeSwap, the main DEX built on the Binance Smart Chain.

Why List the Token Now?

Like most open-source projects, Superalgos relies on people willing to contribute time and effort to develop further: the larger the collaboration, the better our products and services may get.

Most open-source projects rely on the goodness of the people using the software to contribute code and improvements. However, Superalgos introduced an incentive to make the project grow faster: the Superalgos (SA) Token.

Once the token has a tangible economic value, the project will acquire substantial incentivization power:

Superalgos distributes 10M SA tokens per month. Provided that we can sustain the initial listing price of 1M SA tokens per 1 BTC, the project has an incentivization power of 10 BTC per month.

If — as a community — we manage to bootstrap a market for the token at the listing price or higher, we will be able to attract a lot more developers and contributors in general, as we may offer a liquid incentive that contributors can use to pay their bills and support their families.

Loyalty and Common Sense

Setting up a liquidity pool requires providing liquidity for the token being listed and for the base asset in the pair. In our case, we have created a few pools with the following base assets:

  • BTCB — the BEP20 wrapped version of BTC in the Binance Smart Chain;
  • BUSD — Binance’s USD stable coin;
  • WBNB — the BEP20 wrapped version of the Binance token.

PancakeSwap is an Automated Market Maker (AMM) type of exchange. In AMM exchanges, trading is not based on an order book and a matching engine that matches buy orders with sell orders. Instead, all orders — buy and sell — are filled with the funds in a liquidity pool (LP).

The above means that the members of the community providing liquidity are risking their capital. The biggest risk is holders dumping their SA tokens before there is sufficient market demand.

At this point, there is little to no demand for the SA token! It will take a few weeks before the PR & Media campaigns we launched last week will start yielding results!

We expect the first few announcements and articles to hit the media by the end of November!

A dump would be very bad for everyone, as the project relies on the community to bootstrap the market. If some community members dump, they would be robbing other community members of the BTCB, BUSD, and WBNB they are risking to bootstrap the market.

The bootstrapping phase requires loyalty and a bit of common sense from token holders!

It requires a commitment to not sell tokens until the bootstrapping phase is over.

I say that bootstrapping the market requires “common sense” from token holders because it would be plain stupid to dump tokens right before we start marketing! No rational actor would do that! We’ve been bootstrapping the project for four years and we’re currently in the final stretch!

Providing Liquidity is the Best Way to Sell SA Tokens!

Let’s say you are invested in Superalgos, you are a rational actor, you wish to cash out a few tokens and stack the rest for the future. What’s the best approach to do that?

The best way to sell some SA tokens is by providing liquidity.

Liquidity providers in PancakeSwap earn 0.17% on every transaction. On top of that, the incentives set up through the Governance Liquidity Programs will earn you more SA tokens—you will find the details further down in this post.

That’s a good start, right?

Now, let’s say you provide liquidity to the SA/BTCB pool. To do that, you will provide both SA tokens and BTCB to the pool and get Cake-LP tokens in proportion to your ownership of the pool.

Let’s say you keep the liquidity in the pools for six months. During that time, the project will have reached new milestones and the PR & Marketing campaigns will have put Superalgos on the map. Crypto users will be buying SA tokens from the pool, paying in BTCB.

By the time you withdraw your liquidity, there should be more BTCB and fewer SA tokens in the pool than when you put the liquidity in.

This means that you will get back a greater proportion of BTCB than SA tokens.

So, you will have effectively sold some SA tokens for BTCB, at a better average price than the initial listing price. On top of that, you will have been earning fees on every transaction, and earning more SA tokens in reward for contributing liquidity.

The above is not financial advice. It’s just my attempt at a rational analysis of the opportunity.

Governance Liquidity Program

A liquid market is paramount for the success of the token and the project. For that reason, providing liquidity to any of the pools in PancakeSwap is incentivized.

When you add liquidity to a pool in PancakeSwap, you send the two assets (SA and the base asset) to the liquidity pool contract and receive Cake-LP tokens as proof of ownership of your part of the pool.

If you keep your Cake-LP tokens in your User Profile Address, you may participate in the new Liquidity Program!

All you need to do is:

  1. Start the Superalgos Platform and switch to the develop branch, as the latest governance setup hasn’t hit the master branch yet.
  2. Go to your User Profile in the Token Distribution Superalgos workspace;
  3. Deploy the Liquidity Programs node from the Token Power Switch menu;
  4. Spawn a new Liquidity Program. By default, the program is set up for the pool with BTCB as the base asset.
  5. If you added liquidity to a different pool, then open the configuration of the program and change the asset for the correct one.
  6. If you added liquidity to more than one pool, then spawn new Liquidity Program nodes and set up each of them with the correct asset.
  7. Name each Liquidity Program after the base asset of the pool so that you may identify programs easily.

That’s it!

The Superalgos Pools hierarchy features individual pools for each Liquidity Program.

The rewards in these pools are distributed among each User Profile participating in Liquidity Programs in direct proportion to the number of Cake-LP tokens (of SA pools) in their User Profile Address.

The following is not implemented yet, but in the short term, to participate in Liquidity Programs, your Cake-LP tokens will need to be in your User Profile Address for a minimum period of time before the date of each distribution event, to avoid evident attack vectors.

The Choice of PancakeSwap

There are several reasons why we chose PancakeSwap:

  • We believe decentralized exchanges are the future.
  • Although PancakeSwap is not fully decentralized, it is a step ahead of CEXs on several fronts including user experience, privacy, and other values close to our project’s heart.
  • PancakeSwap is the largest DEX by users and volume on the Binance Smart Chain.
  • PancakeSwap is a permissionless exchange. No one needs to approve the listing.
  • PancakeSwap does not charge listing fees.

If you don’t know how PancakeSwap works or what a Liquidity Pool is, you may educate yourself by reading the following pages:

[*] If you can’t figure out how to add liquidity in the specific case of our token and our pools, please check this other post where I explain How to Add Liquidity to Superalgos (SA) Pools in PancakeSwap.

You may also need a refresher on How to Configure the Superalgos Token in Trust Wallet! Swapping tokens and adding liquidity directly from the wallet is extremely easy!

Beware of Scams!

Like with everything else in crypto land, you must exercise caution when swapping tokens, trading, or adding liquidity to pools.

Always verify that you are dealing with the real Superalgos (SA) Token contract:

0xfb981ed9a92377ca4d75d924b9ca06df163924fd

The Superalgos (SA) Token in PancakeSwap

The Token Page

The “unknown” sign will be there until there are enough transactions to validate the LP.

Existing Liquidity Pools

These are the liquidity pools community members have created so far:

Feel free to add liquidity to these pools, or create a new LP with any other base asset! Your call!

Let’s Do This Together!

We are just a few steps away from Superalgos hitting the snowball effect! Let’s put in a little bit more effort to collectively push the snowball to the top of the mountain before we kick it downhill!

If you are a Superalgos token holder, the community needs you! Please join the effort and add liquidity to the pools of your preference!

And remember… we never sell tokens below the listing price!

--

--

Julian Molina
Superalgos | Algorithmic Trading

I’m a lifelong entrepreneur and co-founder of Superalgos.org, a Bitcoin-inspired open-source project crowdsourcing superpowers for retail traders.