Terra has seen several token launches in the past few months. It has been observed that two main challenges continue to exist. The first is that the initial liquidity pools do not have enough depth. The result is an absurdly manufactured initial price pump that makes all insiders really happy. However, this can be very detrimental for retail buyers who aren’t part of the initial purchase. A second problem is that once the token is live, the entire liquidity of the initial list price gets snatched by bots within seconds. Again, this forces the retail buyer into buying in at higher levels.
White Whale has designed an initial token launch model that addresses both of these issues while at the same time bootstrapping our own protocol owned liquidity efforts… it is called “THE BOOTSWAP”
What is a BOOTSWAP, you ask?
Here’s how it works, White Whale is utilizing the latest, freshly audited, open-sourced LBP code graciously provided to the community by the Astroport team. LBP is the Liquidity Bootstrapping Pool. This is used to launch tokens initially created by Balancer. The token price is set high so that it can float to discovery within a specified time. LBP’s are also utilized as fundraising tools as the team provides the initial liquidity at a disproportionate ratio, say (98/2 token/stablecoin) and as the tokens are sold the ratio eventually balances out to whatever target ratio is set by the team in the parameters (i.e. They can claim stablecoins by selling tokens at 20/80 token/stablecoin.
While this is the way it usually works, White Whale has a unique approach. The team from White Whale has been signaling their intention to pursue Protocol Owned Liquidity for some time now, with that said, unlike most other LBP events, White Whale’s BOOTSWAP event will not be a token sale or fundraiser in any way. The White Whale team and incubating entities will receive absolutely no profits. The team funds will be deposited into the LBP pool (along with WHALE tokens) initially, and at the end of the LBP event, when the liquidity pool balances at our predetermined ratio of 50/50 UST/WHALE, same as your standard LP token… all of that liquidity will migrate straight to TerraSwap and will serve as the perpetual trading liquidity for the UST/WHALE pair. The protocol will own all of the corresponding LP tokens. They will also be deposited in the White Whale War Chest.
This is what it means.
- From its inception, White Whale should own the lion’s share of its own liquidity. That’s right… POL right from the start, and
- Because this is a non-sale or raise, and all funds go directly into the community-owned treasurey, KYC will not be required or traded restrictions.
Answers to common questions include: How does the retail buyer benefit if it starts too high? But what if the price is constant and doesn’t go down? White Whale has come up with a solution to this problem. The goal of WHALE token distribution is fair and transparent to all retail buyers. To do this, they plan to exceed demand by increasing the pool size to meet the pump manufacturing needs. The 100 million tokens will be deposited into the LBP. Their reason for this is arguably refreshing – “Because F#&% The Bots, that’s why. This will allow anyone who wishes to purchase liquid WHALE tokens in the initial days of trading to do so at good prices without the risk of all that juicy liquidity being taken by bots. The starting price will be $1.00, so if bots want to snipe, that’s the price they will be sniping at. The price will drop to discovery in 72 hours or until it reaches the target ratio.