TopBidder Liquidity Bootstrapping (LBP) Tutorial
What is BID?
$BID is the governance token of the TopBidder protocol, which is used for protocol revenue’s Yield Farming and subsequent project governance. In order to improve the efficiency of decision-making in the early stage of the project, the dev team will have the right to make decisions. With the gradual mature of the ecology, the decision-making power will gradually be transferred to the community.
- In the early stage of the project, after the artists certified on the platform, part of their rNFT issued has the function of minting $BID in the bidding process. The release speed of $BID is related to the number of artworks submitted by artists, about 12 million $BID expected to be issued every year
- The Top Bidder DAO will be opened after the $BID is distributed to a certain stage, say 30M has been circulated in the market. The DAO will vote to determine the setting of each parameter of the auction system, and the governance adopts a quadratic voting mechanism.
- The governance token $BID has the function of yield farming the weekly revenue generated by the protocol
What are the rules of $BID issuance?
Token Name: BID
Total circulation: 100 Million
Attributes: ERC20
Function: protocol governance
Token Generate Method:
- Auction Farming (5 years distribution, 60M)
- Team (since the protocol official launch for 6 months, linear release within 33 months, 20M)
- Community Reservation (volunteer grants, 50,000 caps per month, 3M)
- Artists Certification Subsidies (after the artists passing the certification and mint an artwork, subsidy 1000 $BID, 1M)
- CryptoArt community Airdrop (will be unlocked on May 20th 0:00 UTC, 1M)
- Early volunteer Grants (core community and early contributors rewards, will be unlocked on May 20th 0:00 UTC, 1M)
- Community Fundraising (released after the protocol is officially launched, linear release within 6 months, 6M)
- Marketing and Strategic Partners (will be released 6 months after the protocol is officially launched, 3M)
- LBP and DEX liquidity providing (liquidity bootstrapping completed before the protocol official launched, 5M)
BID TOKEN DISTRIBUTION SCHEDULE
What are the rules for BID airdrop?
$BID performs airdrop to CryptoArt community, as long as you hold any NFTs of the following products below between the block height of 11,000,000 (October 6, 2020) and the block height of 12,128,000 (March 28, 2021), meanwhile your total spend in Opensea/Rarible/Foundation/SuperRare is more than 100 USD (0.05ETH), you are qualified for this airdrop.
The weight of each product is different. For example, if you own any parcels in CryptoVoxels and any Hashmasks, then you’ll get 200+50 $BID. The airdrop can be claimed on May 20th 0:00 UTC, and you can check it out on this page at any time
What is LBP?
Liquidity Bootstrapping Pools, which is a smart trading pool launched by Balancer. The Tokens in the pool will gradually change the weight over time, and the price will also change accordingly.
In the most extreme case, if BID has not been purchased during the entire LBP period, then the price will gradually fall, as shown in the figure below
However, in practice, the price will fluctuate around the above curve: when someone buys, the price will rise immediately, otherwise the price will continue to fall. Like the game Flappy Bird
The LBP Simulator of BID Token
How is the LBP parameter setting?
The LBP of TopBidder Protocol lasts for 3 Days, starting at block height 12243100 (approximately 6:00 UTC on April 15th) and ending at block height 12262900 (approximately 6:00 UTC on April 18th).
The trading pair is BID/USDC, the initial weight is set to BID 90% + USDC 10%, and the ending weight is set to BID 50% + USDC 50%. During the LBP process, only USDC can be used for trading. The initial price is 1.8 USDC, and the $BID weight will gradually decrease within 72 hours.
When the LBP is completed, the transaction will be suspended and the team will withdraw all the liquidity in the Balancer pool. At the same time, based on the closing price, a BID/ETH trading pair with a liquidity of US$2 million will be established in Uniswap.
In the Balancer LBP stage, the transaction fee rate is 0.15%, and traders other than the team cannot add liquidity. After the LBP ends and the Uniswap trading pair is established, traders can freely add BID/ETH liquidity.
How to trade BID during the LBP?
There is no difference between LBP transaction and ordinary Balancer transaction. Enter Balancer Exchange, select USDC and BID (contract address: 0x00000000000045166C45aF0FC6E4Cf31D9E14B9A) to start trading.
or you can Click on the link to enter directly
What is Poke Weight and what is the benefit?
Anyone can call Poke Weight before large purchases. This function is used to update the $BID weight to the current block height and obtain the latest price of the $BID, which helps to reduce transaction slippage.
After the LBP starts, the team will adjust the weight every 30 minutes (The first 6 hours) / 1 hour (6–18 hours) / 2 hours (18–36 hours) / 3 hours (36–72) Hours) if no one calls the poke weight function
How to get the latest LBP transactions’ status notification?
Join the official Discord https://discord.gg/5g5G6bDF and enter the #lbp-monitor channel to receive the latest poke weight events. You can also join the #trading-monitor channel to monitor the latest transactions in LBP.
What is the best strategy for LBP?
- First of all, do not trade in the first time after LBP starts. Unlike usual projects, the first time the transaction price will be at the highest position, and also there will be a high slippage. Wait for the price to gradually drop to a reasonable price before trading
- Call PokeWeight to update the weight before large transactions, you can get lower prices and smaller transaction slippage
- Under the premise of reasonable transaction fees, split the funds into multiple small transactions to reduce the uncertainty caused by price fluctuations and reduce the possibility of arbitrage by trading bots
What is the essential of LBP?
LBP is not a crowdfunding of $BID, but a liquidity bootstrapping led by the team. Anyone can buy or sell $BID during LBP, just like ordinary DEX transactions.
Other informations:
Product website (not yet launched until Apr.20th)
Airdrop query and LBP countdown
BID TOKEN contract address: 0x00000000000045166C45aF0FC6E4Cf31D9E14B9A
Balancer BPT contract address: 0x126E65CE5d55c5b91891176fa27A6DDDF2EB9755
BID/USDC LBP trading pair link (open after 6:00 UTC on April 15)
Contact us:
WeChat: Add TopBidder and reply 1
