[WIP] PERP Token Distribution on Balancer LBP

[Updated on 8/23/2020]

Hi all,

We’re having a public PERP Token Distribution Event (TDE) soon, and we want to detail our plan here.

TDE Goals:

  1. Reward community members who will likely be participating in future governance and using Perpetual Protocol.
  2. Have a better price discovery mechanism during the TDE.
  3. The TDE has to be permissionless and scalable.
  4. The proceeds from the TDE will be stored in a vault for future DAO and providing liquidity to PERP.

The Balancer LBP

Because of the concern from the community about Mesa, we want to replace Mesa with Balancer Liquidity Bootstrapping Pools (LBPs), you can read more here: https://medium.com/balancer-protocol/building-liquidity-into-token-distribution-a49d4286e0d4.

We’re very closed to the Balancer team and their product is battle-tested and well-regarded in the community.
The sale will be 3 days long and be designed to prevent front-running. It will start at a high price then go down quickly as the weights of the pool change. This prevents people from front-running other participants.

We detail the weight changes and related parameters in a gsheet. Please take a look if interested.

Spot price without any buy_sell orders

New TDE plan:

  • Phase 1:
    • Create a PERP/USDC Balancer LBP(smart pool) (or TDE Pool) with 7,500,000 PERP tokens and 1,333,333 USDC.
    • The TDE starts from the block: [xxx] and ends with block: [xxx] (around 3 days).
    • The weights will change gradually from the start (PERP:USDC = 90:10) to the end (PERP:USDC = 30:70) during the TDE.
    • At the end of the TGE, we will stop the TDE Pool and begin Phase 2.
  • Phase 2:
    • Using the last price and part of the proceeds from TDE Pool to seed a new Balancer PERP/cUSDT Shared Pool.
    • Incentivizing LPs to provide liquidity to the Balancer Shared Pool using part of our inflation rewards in the beginning.

Updated token distribution

Please see: [WIP] Updated PERP token release schedule


Please comment below if you have any suggestions.
Would love to hear more from the community. :pray::pray::pray:

5 Likes

No Mesa pls, most inconvenient instrument as of now for TGE, so suggest you to check other ways,

1 Like

Thanks for the feedback. We got a lot of bad feedback on Mesa so we will try other alternatives.

Hi there! May be you can consider to use trustswap, because of the very good and hyped platform. Be one of the first using the platform will engage many new investors to the project.

I’d like to point out multiple issues with various exchanges I’ve seen so that you might ultimately settle on some platform or just a cocktail of different platforms.

1). Selling by directly sending eth to the contract, I’ve been through multiple pre-sales like this, and I’ve seen that when the time hits many more people than expected just blindly end up sending money, and this just created a lot of noise in the process.
2). Today, I had an experience of trying to do a mesa auction, for a coin called $credit and it says to just offers bids which will be filled, someone put in a bid for 200eth per credit, and although it mightve been a prank someone lost money. The mesa platform doesn’t handle the auction very well.
3). Directly listing on some exchange, the lottery process on exchanges makes it biased towards favouring whales instead of common investors.

I don’t have a clear answer/solution towards this. But to make it fair, I think everyone should have an opportunity to buy this coin. You could either opt for a transparent lottery process, or you could keep a minimum and maximum commitment for a wide variety of investors, for example 0.1-5eth and a maximum of let’s say 1000eth which allows accommodating from 2000 to 10k people. You could sell this in blocks so that more people get in.

The thing is sales are important because that’s your first impression on the public market and when they go bad even for a small amount of investors, it just brings unnecessary bad faith which can be avoided easily.

Thank you for asking for the community feedback.

2 Likes

Hi, I found my way just recently to your project. Not sure I fully understand everything yet.
But this discussion about how to distribute tokens got me thinking.

Maybe there is something to learn from how xio.network has done their distribution last year. The really interesting thing is that they gave away all their tokens for free. Today the project has a marketcap of over 11 MM and has reached 2.8 MM in liquidity on uniswap. That’s quite impressive. The main point is having the community set up the liquidity by incentivising long term holding even against impermanent loss.

For anyone interested here’s an in depth article on how it was done. It’s from May 2020. Things are moving quickly with XIO these days but since it’s on its history, that hasn’t changed. :wink:

2 Likes

Hello, I came here linked for tweets into the comments:

So, my experience on XIO is amazing, I am one of the many early holder of XIO and its models for getting commitments from the community is great.

I don’t know how your token could be distributed, however XIO’s models is fantastic.

Best regards.

P.D. My apologizes if I made a mistake writing this

1 Like

I recommend a lower percentage should be allocated to strategic investors. As we can see with YFI distribution event, the fairer distribution the better for the protocol. You want the public to hold as much tokens as possible, especially if you are allowing strategic investors to take advantage of the inflationary rewards - that would skew the rewards heavily in favor of the strategic investors.

I would recommend 6-8% for strategic investors and an option to buy any of the unsold token at a 30% discount from the auction. This will ensure the team to have the capital to run the project. The discount would be a nice bonus for strategic investors.

Are there any lockups on the strategic investor? They should be locked up given that they have a lot of the supply and lower price (presumably) than public sale.

Seed investor has been around for 2 years. No lock up on them would be ok.

1 Like

Do you know if there is any token sale on TrustSwap?

Thanks for the feedback. Yeah there is still no perfect solutions to this problem. Give us more time to evaluate all the options we have. Thank you.

This is a really cool story. I’m afraid we already past that giving out everything free stage but it’s very inspiring.

Thanks for the feedback. We have liquidity mining rewards. If the strategic investors want to bring in liquidity, they can look at our program here: Liquidity mining rewards

They are doing a first one with ChainGames just now.

Good idea to increase initial supply for best price discovery.
But you should try old fashioned sale types like smart contract Dutch auction (Raiden, Fusion) or auction like Metronome which is like Mesa but more transparent and cost efficiency for buyers.

There are some already. Today is slink.finance

Here’s an article outlining the benefits of doing an IDO on Mesa. DeFi Money Market and mStable had very successful auctions. Let me know if you have questions.

Thank you for providing this. This answers some of my questions.

1 Like

After gathering feedback from the community, we want to make some updates to the proposal. Before going into the details, let me start with our goal of this Token Distribution Event(TDE):

  1. Reward community members who will likely be participating in future governance and using our platform.
  2. Have a better price discovery mechanism during the TDE.
  3. The TDE has to be permissionless and scalable.
  4. The proceeds from the TDE will be stored in a vault for future DAO and providing liquidity to PERP.

By considering the above criteria, we want to replace Mesa with Balancer Liquidity Bootstrapping Pools (LBPs), you can read more here: https://medium.com/balancer-protocol/building-liquidity-into-token-distribution-a49d4286e0d4

We’re very closed to the Balancer team and their product is battle-tested and well-regarded in the community.

The sale will be 3 days long and be designed to prevent front-running. It will start at a high price then go down quickly as the weights of the pool change. The initial high price prevents people from front-running other participants.

We also want to revert the previous proposal and reset the public sale % back to 5% of the initial supply. We got concerns from the community that the initial float is too large for a project. This could risk PERP’s chances of getting listed on CEXs. We want to keep this flexible.

Thanks for the feedback from all of you. Please let us know if you have any feedback about this.

3 Likes

The only thing I’m afraid of given this is that, your pools will dry up quickly. In a project as good as this and the investor attention you’ll get, 5 million PERPs will quickly get sold (and I’m afraid and also sort of sure that larger investors don’t care about minute price differences) and will just buy bulks at large, I’d suggest having a cap on what each wallet can buy but again in the decentralised space that just amounts to buying from multiple wallets.

This is probably why IEOs, whitelists and centralized sales involving kyc are more successful because you can actually cap the number of tokens sold per investor and kyc also shows a certain amount of commitment even though frowned upon.

Thanks for your feedback. This has been brought up several time by the community and we will think more about this. The only possible easy solution is whitelisting, but how to price that round always makes me confused.