The Teams Behind Tinkernet & Basilisk Join Forces To Host The First LBP Event In the Dotsama Ecosystem!
The Dotsama Ecosystem, Web3 (September 15th, 2022) —With all eyes on the team behind the Tinkernet Parachain & the steady flow of alpha day after day that has been alluding to its revolutionary potential, many people have been wondering, “Wen DEX?”
First, the team needed to decide the best approach to price discovery & distribution that would ensure an ideal playing field for all & fair price discovery. Price discovery is how buyers and sellers jointly set an asset’s price according to a price that both sides find acceptable. While there are many amazing DEX’s in the ecosystem, the team behind Tinkernet came to the solid conclusion that there is one approach to price discovery that stands above all others.
It is with this conclusion that the team is absolutely thrilled to announce that the Tinkernet Parachain is partnering up with Basilisk Finance to host the very first liquidity bootstrapping pool (LBP) event in the Dotsama ecosystem!
What is liquidity bootstrapping pool (LBP)?
Before diving into what a liquidity bootstrapping pool, otherwise known as an LBP, it is important to understand the underlying fundamentals of what a liquidity pool is. For this, we recommend readers check out the video below by Finematics on liquidity pools:
In a normal liquidity pool, the two asset types are set at an even 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 20/80 split until eventually reaching a more normal 50/50 split by the end of the LBP event.
The main inspiration behind an LBP is the ability to launch tokens with low capital requirements that also provide a strong degree of protection against the whales and bots in the crypto space.
This is done by disincentivizing frontrunners and whales from getting a better deal than those with less to spend. To achieve this, a two-token pool is set up with a project and a collateral token. The weights are then set in favor of the project token (at first).
Over time, a gradual flip occurs where the collateral coin is favored by the end of the token sale. Controllers can calibrate the sale to keep the price relatively stable to maximize revenue or decline the price to the desired minimum.
LBP events are the ideal solution for projects (like the InvArch Tinkernet) that want to get tokens into the hands of their broad user base & community without the limitations of a rapidly increasing price curve that works against them.
TNKR: The First LBP In Dotsama
In the Polkadot and Kusama ecosystems, the HydraDX team has made LBP one of the core functions of their Basilisk parachain. Thanks to their tech, any project that wants to determine the value of its token can go through this process to establish a fair and reasonable price.
We are very excited to announce that the very first project to hold a liquidity bootstrapping pool (LBP) in the Dotsama ecosystem will be the Tinkernet parachain, and Basilisk will be the very first project to provide the infrastructure & host an LBP campaign!
After the smashing success of the Tinkernet crowdloan, the growing excitement around YoudleDAO, the DAOist CDK, & the GitArch dApp, and the imminent utility of the Tinkernet, it is clear that the time to make the $TNKR token a freely available asset is now!
Token Pair: $TNKR / $KSM
LBP Launch Date: TBD (Est. End of September)
Both teams are ready to launch this historic event & are looking forward to a wide and fair token distribution that ensures the availability of TNKR for all Web3 pioneers!
HydraDX & Basilisk
HydraDX is a cross-chain liquidity protocol built on Substrate. Its mission is to enable frictionless liquidity for all crypto assets by building the first-of-its-kind multi-asset liquidity pool — the HydraDX Omnipool. With the Omnipool, HydraDX breaks with the traditional conception according to which assets are traded in pairs using isolated pools.
Basilisk is not a mere canary network of HydraDX — it is an independent chain that has the mission to enable frictionless liquidity bootstrapping for new crypto assets.
Basilisk is a natural stepping stone on the journey towards building the liquidity infrastructure of the future. Together, Basilisk and HydraDX create a synergy that caters to the varying needs of crypto assets throughout their entire life cycle.
Together, Basilisk and HydraDX create a synergy that caters to the varying needs of crypto assets throughout their entire life cycle. Bootstrap liquidity in the early stages using Basilisk, then move over to the HydraDX Omnipool to unlock unprecedented liquidity in an ocean of assets.
InvArch & Tinkernet
InvArch is a leading-edge layer-1 blockchain built to support and empower the future creator economy by providing a new foundation through its powerful NFT primitives & DAO solutions.
The InvArch Network features the most advanced NFT primitives & DAO solutions produced in the Polkadot ecosystem and is a major project pushing the limits of Web3 further than they’ve ever been possible in other ecosystems.
InvArch is designed not just to allow new products of development to take flight but also to change how individuals and teams can develop together. InvArch is built on the Substrate blockchain framework and designed to launch on the Polkadot ecosystem as a Parachain.
The Tinkernet Parachain is the canary network of the InvArch Network, designed as the IP Asset & accelerated development staging grounds for the Kusama ecosystem. The Tinkernet serves a trio of testing purposes, one for the developers who maintain the network, one for the developers who build on top of the network, and one for the end-users of dApps & applications in the ecosystem.
Both teams will hold a joint Twitter space in the coming weeks. Details will be released in the coming days via the teams’ Twitter accounts. Stay up-to-date with the teams by following HydraDX: @Hydra_DX, Basilisk Finance: @bsx_finance, InvArch Network: @InvArchNetwork, InvArch Tinkernet: @TinkerParachain.