TGE Information & Strategy
Last updated
Last updated
We'll be utilising a new form of TGE mechanism called Intuitive Launchpool Model (ILM) from our friends at Meteora and Jupiter.
Below we've outlined some key information about the mechanism and how it works.
Single-Sided Liquidity Provision: Unlike traditional liquidity pools that require liquidity providers (LPs) to supply two assets (e.g., the project token and a stablecoin), the DLMM pools in the ILM process allow for single-sided liquidity. This means project teams or initial investors can provide liquidity using just the project token, simplifying the process and reducing barriers to liquidity provision.
Early Backstop Liquidity Creation: By allowing single-sided liquidity, the ILM process facilitates the creation of early backstop liquidity. This is a foundational layer of liquidity that supports the token's value and provides a measure of stability and trust during the initial launch phase.
Bootstrap Organic Liquidity: The process aims to transition from initial, artificially created liquidity pools to organic liquidity spread across various trading venues. This transition is crucial for the long-term viability of the token, moving from a controlled launch environment to natural market dynamics. Once the max price has been reached or at the discretion of the company we will transition a portion of the LP raised to be used for company operations, with the remainder being moved to traditional LP venues for liquidity.
DLMM Pool Utilisation: Meteora's DLMM pools are central to this process. By concentrating liquidity within specific price ranges (bins), the DLMM pools can provide efficient trading with reduced slippage, benefiting early participants. The dynamic fee mechanism within these pools also incentives liquidity provision, especially in volatile markets.
Price Curve
When you participate in our TGE, you'll encounter what we call a "price curve." This is a model that determines how the price of our token increases as more and more tokens are purchased from the pool. Think of it as a sliding scale: the more people buy, the higher the price goes.
We've carefully chosen a curvature setting of 0.8 for our price curve, and here's why it's important:
Quick Price Increase for Early Action:
Our price curve starts steep, meaning the price rises quickly with initial purchases. This rewards quick decisions and early participation, making our token an attractive opportunity for those who get in early.
Fair and Wide Distribution:
With a 0.8 curvature, we strike a balance. It's not so steep that it deters genuine interest, but it's sharp enough to prevent any one person from buying up large quantities of tokens at the lowest price. This helps ensure that our tokens are distributed fairly across a broad base of supporters.
A Preventative Measure Against Bots:
Bots can often swoop in and buy large amounts of tokens quickly, leaving less for genuine investors. Our chosen price curve helps prevent this by making it less profitable for bots to operate. As the price increases rapidly right from the start, bots can't buy up large amounts without incurring higher costs.
You can check out the full model here
