A Complete Tinkernet LBP Participation Guide for Normies!

Hello, and welcome to the Complete Tinkernet LBP Participation Guide for Normies!

This guide will cover all the steps you need to participate in the upcoming TNKR Liquidity Bootstrap Pool! From setting up a wallet and buying KSM tokens to the actual participation in the LBP!

First things first, let us understand what an LBP is!

Liquidity Bootstrapping Pools are used for token price discovery! Price discovery is how buyers and sellers jointly set an asset’s price according to a price that both sides find acceptable.

In a normal liquidity pool, the two asset types are set at an even 50/50 ratio. However, with a liquidity bootstrap pool, the liquidity pool could start with a 10/90 split between two token pairs. Over time, the price will regulate itself as an effect of trading volume & drive the liquidity pool to a more even split until eventually reaching a 50/50 split by the end of the LBP event.

Simply put, in the beginning, the price will start high and reduce closer to the end of the LBP event. However, each token sale during the event will affect the split and increase the price. So, in the end, the price could be even higher than it was at the beginning! It all depends on general interest in the token and the project valuation!

As we can see from the example above:

1. Start of the LBP — the price drops until the first significant trade is made
2. Sale affected the price, and it flips up
3. If no sales happen, the price starts to drop again
4. More sales pump the price up
5. The closer to the end of the event, the biggest the trading volume and the more price volatile.

To fully understand the mechanics, we recommend readers check out the video below by Finematics on liquidity pools:

When and where?

The Tinkernet LBP event will be hosted on the Basilisk platform.

  • LBP launch date: Oct. 12, 2022, at 4:00 pm UTC.
  • LBP ending date: Oct. 15, 2022, at 4:00 pm UTC.
  • LBP token pair: KSM/TNKR

We suggest you prepare everything before the start of the event so that you will be ready when the show begins and can act quickly!

So let us dive into the preparations 👀

Step 1. Set up your Talisman wallet and purchase KSM

To participate in the LBP, you will need a token that you will trade for TNKR in exchange, so the first step will be setting up the wallet and buying some KSM.

In this guide, we use Talisman wallet as an example because we believe it has a very friendly and understandable interface. However, you can use other alternatives, such as polkadot.js.

  1. Download and install Talisman wallet in your browser

2. After installing, click to create a New wallet or Import an existing one if you have it.

3. Set up a password.

4. After creating a wallet, please back up your seed phrase in a safe place!

5. After installing the Talisman browser extension, you need to ensure that it has been updated with the latest chain metadata. For this purpose, we need to visit the following link, and connect your wallet:

  1. Click on Settings
  2. Click on the Metadata tab
  3. If an update is needed, you will see the button Update metadata. Click on it and follow the instructions.

6. Now that the wallet is set, it is time to buy some KSM! You can buy it through the Talisman wallet using your credit card or buy it on a central exchange and transfer it to your wallet!

7. If you decide to buy KSM from a central exchange, you need to create an account on one of the exchanges, for example, Kraken. Here is a video guide on how to do it if you are new to CEXs.

After you buy some KSM on CEX, you will need to transfer it to your KSM wallet from the exchange. You can find your Talisman wallet address here:

  1. Click on the icon so the app will open
  2. Click on your Polkadot account
  3. Click on copy singChoose Kusama address and copy it to the clipboard

Step 2. After you have KSM in your Talisman wallet, you need to bridge them to Basilisk using the Karura bridge.

  1. Connect your wallet to Karura
  2. Choose Kusama in the Original Chain window
  3. Choose Basilisk in the Destination Chain Window
  4. Enter the amount of KSM you want to transfer
  5. Hit the Transfer button and Confirm the transaction in your wallet

Step 3. That’s it! Now everything is ready, and you can participate in the Tinkernet LBP!

Please go to the Basilisk app and connect your wallet to get started.
Let’s talk about the interface and what you can find here.

  1. LBP Pair: TNKR/KSM
  2. Time remaining until the LBP ends
  3. Current TNKR price in KSM
  4. Price curve
  5. Your KSM balance
  6. Current KSM to TNKR ratio

The screenshot provided is only an example, and during the LBP event, all ratios/prices and curves will be different.

So all that is left is to enter the amount of TNKR you want to buy or KSM you want to spend, hit the SWAP button, and you will have your TNKR tokens! 🥳

Thank you so much for reading this guide! The InvArch Tinkernet and Basilisk Finance Teams are excited to see and hear all of you truly enjoy the TNKR Liquidity Bootstrapping Pool–the first to ever happen in the Dotsama ecosystem! 🚀

LBP Launch Date: Oct. 12, 2022, at 4:00 pm UTC
LBP Ending Date: Oct. 15, 2022, at 4:00 pm UTC
LBP Token Pair: KSM/TNKR

Link: https://app.basilisk.cloud/#/trade

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The cross-chain IP composability, funding, & authentication hub of Polkadot