Liquidity Bootstrapping Event (LBE)
Last updated
Last updated
IMPORTANT: We would like to inform you that the exclusive LP pool has now been merged with the normal pool since the reward for both pools were identical. If you intend to stake your LP tokens, please ensure that you place them in the normal pool. The exclusive pool is no longer active for staking. Furthermore, we want to clarify that the functional NFTs from LBE will NO LONGER be required to stake your LP tokens These NFTs were specifically associated with the exclusive pool, which has now been merged with the normal pool.
We launch our $MCOS token through a Liquidity Bootstrapping Event (LBE) on Minswap, through which 2% of the total supply will be distributed. A majority of revenue from LBE will be retained on this DEX while a small amount will be reserved for project development and risk management. A further 2% of the supply is reserved as rewards for LP farming to ensure high liquidity for the project (see Liquidity Pool).
The goal of an LBE is to make the token launch process fair for everyone regardless of the size of their portfolio. This standard facilitates fair price discovery, protects the reputation of new projects, eliminates bot manipulation, prevents whales from price manipulation, and offers a wide distribution of tokens.
Bots and whale manipulation are two of the most serious concerns about launching a token. We all know that bots can operate much faster than actual investors. Their ability to make purchases at the lowest price and dump them on supporters is impressive. Constant monitoring allows them to gain massive profits at the expense of our community. It is not uncommon for bots to snipe the initial list price of a token within seconds of it going live, screwing retail buyers and forcing them to pay more. Additionally, whales may decide to withdraw large positions at the very end of an LBE, causing the price to dump. This kind of manipulation, however, is virtually impossible under LBE restrictions, including, but are not limited to:
The price will only be determined at the end of the Discovery Phase and will remain the same for everyone.
A 25% withdrawal fee will be applied during the last two days of the event.
Fair Price Discovery: MCOS/ADA will not have a set price upfront, rather the community will determine a fair price based on how much ADA is provided to the Liquidity Bootstrapping Pool during the LBE. To be specific, Mocossi Labs will supply 2% of the total token supply to the LBE, and users deposit ADA to this pool. Then a fair price is discovered based on the ratio between MCOS and ADA at the end of the event.
During the LBE, Minswap's UI will display the MCOS/ADA pair's price.
Broad Distribution: The LBE provides permissionless participation and low entry barriers, allowing users to participate with only ADA in their wallets. Everyone, regardless of his or her capital size, will be able to participate in the event equally, resulting in broader MCOS distribution.
Even with the above benefits, users should take note of the potential price volatility as there is likely to be significant fluctuation during, before, and after the LBE. It is expected that the starting price will be very low compared to the current price and will adjust as the event progresses. Moreover, the price may also change significantly at the last minute.
Mocossi’s LBE consists of 2 main phases: Discovery and Encounter.
The discovery phase will last for 10 days, during which users can participate by providing ADA. Users who deposit ADA will receive 'mcosADA' to represent their contribution to the Liquidity Bootstrapping Pool (1 mcosADA = 1 ADA). In addition, as the event progresses, participants can claim back their ADA by returning the 'mcosADA' whenever they want. However, note that to prevent price manipulation, any 'mcosADA' redemption during the last two days of the event will be subject to a 25% fee. Consequently, if you deposit 100 ADA and redeem the 100 'mcosADA' within these last two days, you can only claim back 75 ADA.
The fair price ratio will be determined/discovered based on the ADA amount users deposit at the end of the Discovery Phase.
Participants can redeem their 'mcosADA' obtained during the Discovery Phase for MCOS/ADA LP tokens equal to their share of mcosADA in the entire pool. A fixed conversion rate will be used at the end of the event to convert 'mcosADA' into MCOS/ADA LP tokens based on the MCOS/ADA ratio. Note that there is no time limit for redeeming LP (the Minswap's LBE limited redemption to 14 days).
To incentivize LBE participation, LBE participants will receive a functional NFT and a PvP NFT.
The functional NFT will act as a 'ticket' to participate in the exclusive farm pool with higher APR and triple farm tokens that Minswap operates (meaning participants will receive MCOS, ADA and MIN as rewards for staking). The exclusive farm pool is available only to LBE participants and later liquidity providers can not stake in it. Note that users can stake LP tokens to the exclusive farm pool only up to the amount they contributed to LBE. Additionally, the LP token amount will be encoded into the NFT's name. This means a wallet can only stake as many LP tokens into the exclusive farm pool as the amount encoded in the NFT's token name. However, the NFT will also be tradeable. In case a wallet contains two or more functional NFTs, the system will select the one with the highest value.
To illustrate the whole process, consider this example: a user participating in the LBE with 1,000 ADA will receive 1,000,000 LP tokens at the end of the event, along with an NFT with the token name 1,000,000. The user can then stake 1M LP tokens into the exclusive farm pool.
The PvP NFT is mainly reserved for PvP gameplay. Conceptually, with this NFT users can exchange for game assets in the PvP phase. There are 5 different types of PvP NFTs and 500 ADA is the minimum amount. Depending on the amount of ADA you deposit in the LBE, you can receive different types of PVP NFT that can be exchanged for game assets. In particular:
500 ADA: Wooden chest
2,000 ADA: Copper chest
5,000 ADA: Silver chest
10,000 ADA: Golden chest
20,000 ADA: Diamond chest
Note that the value of an NFT is determined by its ranking, such that: Diamond > Gold > Silver > Copper > Wood. We do not limit the maximum amount of ADA users are allowed to deposit, nor do we limit the number of PvP NFTs available on the market (as long as you qualify, you'll receive your respective PvP NFT).
