Anyone who has spent a little time in DeFi has experience with an unfair or arbitrary token distribution of a popular new project. Everyone on the team at Lixir certainly does. With that in mind, we want to have the fairest possible launch. Soon, we will be launching a Balancer Liquidity Bootstrapping Pool (LBP) to initiate the fairest possible distribution of $LIX. We looked at many token generation mechanics, and feel strongly that a LBPs yields the most equitable outcome.
Why do you need $LIX?
$LIX, the native token for the Lixir platform, is used for two purposes. First, staking $LIX enables you to farm more $LIX. Simply by staking your liquidity with us or providing liquidity for the $LIX token itself.
Second, $LIX functions as the governance token. Chiefly, $LIX holders can vote for which new pairs are added to the Lixir platform. They can also vote to change the staked amount thresholds for classes, or even introduce new risk classes. In this way, we expect the Lixir platform to be community lead.
How to get $LIX
Private Sale
To seed the LBP pool and to kickoff Lixir we are selling roughly 15%* in a private sell. The tokens are subject to a linear 6 months vesting period and require a certain minimum allocation. Please feel free to contact us in order to get more details and to be potentially allocated. To guarantee a fair allocation everyone is eligible to get an allocation as we serve on first come and first serve basis. It is important to mention, that we will not be selling the majority of tokens to a few participants to create an unfavorable token distribution.
Balancer Liquidity Bootstrapping Pool (LBP)
The other way to acquire $LIX is through the LBP. The event will start somewhere in the next 2 weeks from the publishing date, lasting a total of 3 days . It is very important you understand the basics of how the LBP works before you purchase any $LIX tokens. We will be publishing a detailed tutorial in advance to get you covered.
Balancer LBPs allow projects to create substantial liquidity and distribution at launch.Projects can generate liquidity from smaller amounts of seed capital, which helps keep potentially unfair pre-sales or OTC deals to a minimum. LBPs foster a wide distribution of tokens by balancing price discovery on one side and opportunity on the other. How does this work?
In the vast majority of pools, such as Uniswap’s, the assets in a pool are equally weighted, 50–50. If we had a Uniswap equally weighted pool of $LIX-$USDC, swapping $USDC for $LIX would increase the quantity of $USDC and reduce the number of $LIX, which would increase the price of $LIX.
LBPs are different. During the course of the LPB , the weights assigned to the two assets continually change. In our event the $LIX-$USDC weighting changes from example : 90:10* to 30:70*. These changes reduce the price of $LIX if no purchases are made, creating a constant downward pressure on the price of $LIX. However, every purchase of $LIX pushes the price up. The strong downward pressure allows everyone to purchase $LIX at a reasonable price, while also allowing price discovery.
Important factors to remember:
- It’s not a race. LBPs are designed such that the price starts high and falls quickly in the absence of trades. We strongly encourage you to not FOMO at the beginning of the LBP.
- 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).
Tokenomics and Allocation
10.000.000 ,- (10 million) $LIX tokens will ever exist.
- Ecosystem: Tokens, which will benefit liquidity providers on Lixir, LP for $LIX itself and potential partnerships.
- Team: Is pro rata vested for the current team, future team, and other long-term team members.
- Treasury: Tokens used to grant community projects and other proposals.
- Balancer Pool *: Is our only public sale and will go roughly live 2 weeks from the publishing date of this article.
- Sale*: Tokens sold to private investors who are locked-up for 6 months.
*Depending on circumstances percentages can change
