Lixir Liquidity Bootstrapping Pool Details & Tutorial

Key facts about the LBP

  • End date: 4PM UTC 10th May, 2021
  • Initial $LIX balance: 1million (10% of total supply)
  • Possible additional $LIX injection : 1.5million (15% of total supply)
  • Initial $USDC balance: 1 million
  • Starting weight: 96% $LIX : 4% $USDC
  • Ending weight: 48 % $LIX : 52% $USDC
  • Starting price: $25

Important factors to remember:

  1. It costs gas. The Balancer LBP is an Ethereum smart contract and gas costs on Ethereum are non-trivial at the moment.

Slippage matters. If you are buying large amounts, you will probably have to increase your slippage above the default maximum of 0.5%, or you can break it up into smaller orders (higher total gas fees, though).

Balancer LBP full details

The event will start at 8th May, 2021 at 4PM UTC and end at 10th May, 2021 at 4PM UTC, lasting a total of 48 hours.

During the course of the LBP (48 hours), the $LIX-$USDC weighting will change from 96% $LIX : 4% $USDC to 48% $LIX : 52% $USDC. See the graph below to see how these weighting changes reduce the price of $LIX if no purchases are made, creating a constant downward pressure on the price of $LIX. Of course, every purchase of $LIX pushes the price up, but the strong downward pressure will allow everyone to purchase $LIX at a reasonable price, while also allowing (muted) price discovery.

Aside from spot price, we can look at what happens to the Fully Diluted Valuation (FDV) during the LBP. This is a useful metric to determine the future viability and health of a project. FDV is the market cap of a project once the maximum number of tokens have been issued. Often projects hold back a large portion of the tokens, making the circulating supply significantly smaller than the total possible supply. For such projects it seems unlikely that they would be able to maintain the current spot price per coin if the maximum supply was released. It can also reveal gratuitously large future marketcaps that are highly unlikely.

Lixir does not suffer from this problem. There are only 10 million LIX tokens, of which the team and advisors only hold 12.5%. Those tokens are locked up in a 2 year vesting contract. Even if all of the LIX tokens are purchased immediately, the total possible market cap is still a relatively sane FDV. Here is a graph of the FDV during the LBP.

How to participate in LBP

1.This tutorial uses MetaMask.

Users are required to use a Web3-enabled cryptocurrency wallet. We recommend MetaMask, but there are other Wallet applications that are supported by Balancer. If you don’t have MetaMask installed, check out this tutorial.

2. Make sure your wallet has sufficient USDC. While other tokens can be used, we recommend that you use USDC to purchase LIX. You will also need ETH in your wallet to pay for the gas.

3. Go to the Balancer LBP link that will be provide soon enough

4. Press the “Connect” button in the top right corner, then select “MetaMask”. This connects your MetaMask wallet to Balancer.

5. The Balancer Swap page will look like this:

6. When you put an amount of USDC for LIX, the “Enter amount” button will change to “Unlock”. Press the “Unlock” button and confirm the action through MetaMask. You will have to wait for the transaction to process.

7. Once the transaction has been successful, the button will now say “Swap”. Press it and confirm the transaction through MetaMask. This will also take some time to process. After a short time you will have LIX in your MetaMask wallet!

What to expect before our LBP

  1. Explanation video
  2. Small Airdrop challenge
  3. Whitepaper release
  4. Contract release
  5. App design update

Likely to happen before LBP but can’t 100% guarantee

  1. Working Lixir V1 application