How to: Bootstrapping Event
This is the first opportunity to mint LDN and to participate in the governance of the network. All proceeds will go to the Lydian Treasury, a smart contract entirely controlled by LDN token holders.
The LDN Treasury Bootstrapping Event (TBE) will commence on the Lydian dApp on March 15th 2022 (aiming for a block number around 15:00 CET (09:00 EST, 23:00 KST/JST)) and will come to a close either after a predetermined 4 days or when all tokens have been sold, whichever will happen first. Even if all tokens are sold, tokens will only be claimable after the 4th day.
1. Brief summary
The concept of the Treasury Bootstrapping Event is an adaptation of a dutch auction with a linearly dropping price point. During the event commitments to purchase tokens can made in USDA (Arkadiko stablecoin).
In this auction, the starting price is set at an elevated price per token to minimise the interest of bots and whales. The price then drops as time passes. The eventual, final price will be decided once all tokens have been committed to for purchase. Participants will individually choose when (and thus at which price) they are willing to buy tokens and commit their funds — yet the auction continues until all tokens have been reserved. The eventual, final price of LDN will be decided at the end of the auction, in part based on if and how fast the token was able to sell out (full supply committed).
This could potentially lead to a lower total amount raised for the treasury. However, all participants will get their tokens at an equal price, being the lowest price point the auction reached.
2. Engaging in the Token Bootstrapping Event
There will be no whitelist or privileged entries for the Bootstrapping Event. Anyone with USDA (Arkadiko stablecoin) can take part in the dutch auction and use it to mint LDN. Please make note that in order to mint, some STX will be needed to cover the transaction’s gas fees.
Below you will find a step by step guide on how to take part in the bootstrapping event:
Visit the Lydian website (lydian.xyz). Note: It’s important to always go directly to the site to avoid any phishing hyperlinks or use a validated browser bookmark.
Enter the dApp.
Click the “Connect Wallet” button in the top right corner.
Ensure that your wallet is connected to the Stacks Network by clicking in the top left corner of your wallet.
In the navigation bar, select “Auction”.
Here you will be presented with some more information on the current status of the event and information about the bonding commitment and a countdown timer will be displayed.
Go to the “Commit” tab
On the Commit page you can place your bid. You can use the input box to enter the amount of USDA you want to commit. The amount of LDN you would get for your USDA is then calculated based on the current auction LDN token price and subsequently recorded and reserved. Note: If there are less LDN tokens of the initially supply still available than the amount you want to reserve, your reservation will be capped to the amount that is still available.
During the auction, the price of the token will start at 400,00 USDA and will slowly drop to a reserve price of 40,00 USDA per LDN token. The eventual and final token price of the auction will be decided, based on when the auction ends. Each participant will be able to get their recorded LDN amount at the exact same price.
IMPORTANT: You need to approve the transaction in your wallet.
After approving your transaction, you should see a pop-up on the app saying your tokens have been sent with a link to Stacks Explorer.
Once your wallet confirms that the transaction has been completed, your tokens will be formally committed.
Note: Your tokens will be held securely by the auction contract until the auction ends. Please return when the event ends to claim your tokens.
3. Claiming your tokens after the event
When the maximum runtime of the event concludes on March 19 2022, you will be able to claim your tokens. Even if all tokens are sold causing an earlier end, tokens will only be claimable after the 4th day. This is how to do it:
Return to the Lydian website (lydian.xyz). Note: It’s important to always go directly to the site to avoid any phishing hyperlinks.
Enter the dApp.
Click the “Connect Wallet” button in the top right corner.
Ensure that your wallet is connected to the Stacks Network by clicking in the top left corner of your wallet.
In the navigation bar, select “Auction”.
Go to the “Claim” tab to claim your LDN
Your wallet will ask if you wish to allow Lydian to spend and withdraw your asset. Review the details carefully and confirm.
You should see a pop-up on the app saying your tokens have been sent with a link to Stacks Explorer.
After they arrive in your wallet, the you should see your LDN amount displayed in your wallet and in the token overview at the top of the dApp. (hard refresh the page with CTRL+F5 if it is not displaying correctly )
4. Conclusion
Lydian’s primary focus is to optimize Yield Farming for its guild members. Using the treasury we build during this kick-off event, Lydian will be able to procure the best yields on the market for its members.
We hope you are able to grab your LDN and claim your membership of the Farmers Guild.
If you want to know what’s next after this TBE, please refer to our previous article.
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