Exciting times fellow Klimates — we’re now days away from Part 2 of our Fair Launch: our Liquidity Bootstrapping Pool (LBP)
We’re excited to be launching in partnership with the amazing Alchemist community on copperlaunch.com. The exact timeframe is as follows:
Start: 14th September 2021 (3PM UTC)
End: 17th September 2021 (3PM UTC)
During this 3-day event, you will be able to get your hands on freshly forged aKLIMA tokens.
While aKLIMA is an Ethereum-native token, KLIMA on the other hand has its home on Polygon. A bridge will be available after the launch which will allow you to bring your aKLIMA over to Polygon. This will allow you to redeem them for the equivalent amount of KLIMA at protocol launch in October.
The contract address of the liquidity pool will be announced on Twitter from the Klima DAO account: https://twitter.com/KlimaDAO. Any other pools or announcements should be considered as a scam. Please only use the address and links that are officially tweeted from the KlimaDAO Twitter. The Copper team assures us that copperlaunch.com will be hooked up to the correct pool, but we recommend you always verify and cross-reference such things as best practice.
State of fair play
Fair Launches are seen as a holy grail for cryptocurrency. A successful Fair Launch means that the token will ultimately be owned and governed by its community. The challenge is that even if a fair launch is the objective, distribution can still be fraught with difficulties around fair price valuations, front-running from bots, whales buying up supply or other nefarious activity.
KlimaDAO has laid out its Fair Launch Strategy. The strategy limits technical exploitation, disincentives pump and dumps, and maintains control over token distribution until the protocol is fully launched.
Review our previous blogs to get up to speed on our strategy and the current state of play:
In this entry, we outline what our LBP will look like to give those interested in participating oversight of where we will start, and key parameters that may influence the outcome.
As a quick reminder, a Liquidity Bootstrapping Pool is an adjustable balancer smart contract designed to distribute tokens fairly across market participants. They start at high prices to disincentivize exploitation from bots and whales, and use constant downward pressure over a limited duration to allow the market to converge on a fair price.
The graph below displays the aKLIMA token price over the 72 hour period if no swaps are executed.
The weights, or the ratio of the two assets within the Balancer Pool shift from more aKLIMA at the beginning, to more USDC at the end of the LBP. This creates a downward pressure on price over the duration of the event.
Our LBP parameters:
The KlimaDAO Fair Launch will have the following key parameters:
- Start Date: 14th September, 3PM UTC
- Sale Duration: 3 days (72 hours)
- Platform: copperlaunch.com
- Start price: approx $116
- Initial aKLIMA: 120,000
- Initial USDC: 575,000
- Start Weights: aKLIMA 96%: USDC, 4%
- End Weights: aKLIMA, 10%: USDC, 90%
For context: 57,000 KLIMA will be distributed to NFT holders who took part in the Initial Discord Offering.
Although we can control these parameters, we are unable to moderate or predict demand, and it is therefore impossible to predict what will happen during the event. However after many hours of consideration, cross referencing previous LBP data, consulting with the teams behind them, as well as close consultation with the Alchemist Copper team, and countless simulation models — we believe these settings will have the best outcome for our community, and give KlimaDAO the best possible chance of success.
Given the above parameters, and assuming a constant swap rate of 1,104 aKLIMA per hour, we outline what the LBP might look like, below. The moderate, on-going demand would theoretically counteract the natural price decay, leading to a gentle decline in price throughout the event.
That said, this is purely hypothetical, and there are too many demand variables to discuss in any meaningful depth here. Events in the opening minutes of the LBP (or at any moment throughout) could disrupt the entire price discovery trajectory.
Hence, KlimaDAO encourages those who wish to receive a distribution of aKLIMA to read up on the underlying mechanics at play here, and decide on individual strategies that are appropriate for your objectives.
Please Note: this is not investment advice, nor even our expected outcome, this is simply one potential outcome that could happen based on the described parameters.
KlimaDAO will utilize Copper Launch for our LBP. Copper is described as the “most open, transparent, and user-friendly way to participate in a Fair Launch Auction (FLA).” Fair Launch Auctions are simple crowdfunding mechanisms that enable projects, such as KlimaDAO, to provide token swap opportunities with minimal barriers to entry for participants.
To participate in the LBP, you must connect a Web3 enabled cryptocurrency wallet to copperlaunch.com. Copper currently supports MetaMask, WalletConnect and Ledger. When you reach that platform, you will be required to connect your wallet (as pictured below) and then click through ‘View Auction’ to see KLIMA. Double check the contract address before participating. We will tweet official contract addresses and links from our Klima DAO Twitter account on the day of the auction.
The KlimaDAO LBP will be comprised of two assets: aKLIMA and USDC. While other tokens will be accepted for the swap, we recommend preparing USDC to exchange for aKLIMA. If you swap using other tokens, you may face a higher price as you may incur transaction costs while converting your token to USDC.
Quick fire Q&A:
Is registration required for LBP?
- No. There is no registration to take part in the LBP. This is an open and permissionless process.
Will the LBP be on Polygon (Matic Network) or Ethereum?
- KlimaDAO will utilize Copper Launch for the LBP. It will be on Ethereum (L1).
Can I pay in ETH, DAI, USDC? (i.e. will Copper UI switch it for me automatically?)
- You may use whatever token you want that Copper allows (likely WETH, ETH, USDC, DAI). However, ETH will be required to pay for gas fees. USDC will be used in the Balancer Pool; if you choose to pay with another token you may incur additional fees.
What is the forecasted end price?
- We have no idea.
What happens after the LBP concludes (when do I get my KLIMA? When will the project fully launch?)
- aKLIMA is a coupon for KLIMA which can be swapped at full launch at a 1:1 ratio. We will release a blog with further details after the LBP. We will also continue to keep the community updated in our twice-weekly community calls on the Discord.
What happens if you don’t sell enough?
- We’ve been conservative in our estimates and don’t see not selling the full 120,000 KLIMA as a detriment to our development.
Where do BCTs come into all of this?
- Funds from our Bootstrapping event will be utilized to develop the initial supply of BCTs for seeding liquidity in both the BCT-DAI and BCT-KLIMA Sushiswap pools.
Want to participate but don’t know where to start? Check out our step by step guide in our article Klima For Dummies: How to take part in the Fair Launch Auction to learn exactly what you need to do.
The information provided in this Medium Post pertaining to Klima DAO (“Klima DAO”), its crypto-assets, business assets, strategy, and operations, is for general informational purposes only and is not a formal offer to sell or a solicitation of an offer to buy any securities, options, futures, or other derivatives related to securities in any jurisdiction and its content is not prescribed by securities laws. Information contained in this Medium Post should not be relied upon as advice to buy or sell or hold such securities or as an offer to sell such securities. This Medium Post does not take into account nor does it provide any tax, legal or investment advice or opinion regarding the specific investment objectives or financial situation of any person. Klima DAO and its agents, advisors, directors, officers, employees and shareholders make no representation or warranties, expressed or implied, as to the accuracy of such information and Klima DAO expressly disclaims any and all liability that may be based on such information or errors or omissions thereof. Klima DAO reserves the right to amend or replace the information contained herein, in part or entirely, at any time, and undertakes no obligation to provide the recipient with access to the amended information or to notify the recipient thereof. The information contained in this Medium Post supersedes any prior Medium Post or conversation concerning the same, similar or related information. Any information, representations or statements not contained herein shall not be relied upon for any purpose. Neither Klima DAO nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this Medium Post by you or any of your representatives or for omissions from the information in this Medium Post. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed in this Medium Post.