OPTIM Token Launches on Cardano
10/31/2023
October 29th marked the start of the Optim Finance Initial Liquidity Event (ILE). The ILE was met with high demand by the Cardano Community, which led to a pro-rata token allocation to ensure a fair token launch. This event marks the final stages of Optim Finance’s transition to a fully decentralized protocol that will be governed by the Optim Token. This article delves into Optim Finance’s ILE, token launch, and the subsequent deployment of liquidity on the DEX.
ILE: Initial Liquidity Event
Following a successful Genesis ODAO vote this month, OPTIM and OPTIMiz tokens were sent to the ODAO Treasury on October 27th, 2023. These tokens were used to facilitate the Initial Liquidity Event for the protocol’s utility and governance token.
Token Allocation
This Initial Liquidity event saw 11,000,000 tokens, equivalent to 8% of the total supply, go into circulation, along with 4,000,000 OPTIMiz tokens. OPTIM serves as the utility and governance token of the Optim DAO (ODAO), which governs the Optim Finance Protocol. OPTIMiz tokens act as yield boosters and can be converted to OPTIM when paired with OPTIM/ADA LP tokens. OPTIMiz tokens are a bonus automatically received with each OPTIM.
First Swap Phase
The first stage of Optim Finance’s Initial Liquidity Event allowed ecosystem participants to provide ADA in exchange for OPTIM tokens and OPTIMiz. In this phase, 5 million OPTIM were made available in exchange for 2.5 million ADA at an exchange rate of 1 ADA = 2 OPTIM + 1 OPTIMiz as a bonus. Due to overwhelming support from the Cardano community, the first swap stage of the ILE raised a remarkable 11.36 million ADA, exceeding the round’s goal by 454%. The round was oversubscribed by 354%. In the event of oversubscription, a pro-rata format will be applied, meaning that for every 1 ADA contributed, 0.78 ADA will be sent back to ILE participants.
Second Swap Phase
In the second phase of the OPTIM ILE, users had the ability to swap their Optim Bond Tokens for OPTIM tokens. Three million OPTIM were made available in exchange for 15,000 Optim Bond Tokens, equivalent to 1.5 million ADA face value. This round also witnessed substantial community support, with participants purchasing bonds on Danogo to partake in the second swap phase of the ILE. When phase 2 ended, 3,839,087 ADA worth of bonds were deposited. The ILE phase 2 was overfunded, meeting its funding goal by 255%, resulting in an oversubscription of 155%. In line with the oversubscription, participants will be refunded all excess Bond Tokens beyond their pro-rata allotment, along with their OPTIM tokens and OPTIMiz.
Settlement Phase
After the ILE, a settlement phase ensured that users received their tokens shortly after DEX liquidity was launched. Participants received approximately 79% of their deposit back in ADA and 21% back in OPTIM tokens, along with their OPTIMiz bonuses. This settlement phase aimed to provide ILE participants with a smooth transition and fair allocation of tokens as they prepared to participate in the broader ecosystem.
DEX Liquidity
The initial liquidity provided by the ODAO was launched on the Spectrum Finance DEX. To address concerns about sniper bots on token launches, the Optim Finance team implemented an LP tax to discourage such behavior and ensure a smoother token launch.
LP Tax Structure
- First Two Hours: A 20% swap fee will be applied.
- Next 24 Hours: The swap fee will be reduced to 10%.
- Subsequent Periods: A 5% swap fee will apply until amended by the ODAO.
This LP tax structure is designed to create a more equitable and secure trading environment while supporting the growth of the Optim Finance ecosystem.
OPTIM Token Performance
At the time of writing OPTIM is up over 6% in the last 24 hours. The token has a market cap of $2,056,494 and a fully diluted market cap of
$18,695,397, placing it at #37 in the top 50 on TapTools.
About Optim Finance
Optim Finance is a Decentralized Yield Generation protocol on the Cardano blockchain. Leveraging the composability of DeFi protocols as well as the unique architecture of the Cardano blockchain, Optim Finance creates and enables broad access to yield-generating products such as Liquidity Bonds and Strategy Vaults. You can find out more about Optim Finance at the following link: https://www.optim.finance/
Conclusion
Optim Finance’s Initial Liquidity Event (ILE) and subsequent deployment of liquidity on the DEX mark significant milestones in the project’s journey toward full decentralization and governance by the Optim Token. With a strong community backing and innovative mechanisms in place, the Optim Finance protocol is poised for a promising future on the Cardano blockchain.
This article is strictly for informational purposes and does not constitute a promotion or financial advice. Our aim is solely to provide users with the latest news and updates within the Cardano ecosystem.
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