ANNOUNCING COLDSTACKS $CLS BALANCER LIQUIDITY BOOTSTRAPPING POOL.
ColdStack has watched their community expand from their project’s inception, and have been pleased to see the increase in interest regarding ColdStack’s IDO. In order to provide greater opportunity for their treasured community to partake in this process, They have elected to offer a Balancer Liquidity Bootstrapping Pool.
ColdStack will auction up to 1.8% (900,000) of the total $CLS token supply and 1,250,000 USDC in a Liquidity Bootstrap Pool (LBP) by Balancer.
What is Balancer LBP?
For those unfamiliar with Balancer, we recommend reading into their documentation. The TL;DR is that Balancer is a self-balancing portfolio. Balancer is self-branded as a “protocol for programmable liquidity”
Balancer initially was used as a way to create automated portfolio strategies with automatic portfolio rebalancing. Unlike other AMMs, Balancer enables its users to have more than two assets and weights outside of 50/50 as it uses a different formula. It also enables pool managers to change the weights of each asset in the pool and change their transaction fees.
The LBP is a decentralized auction that is similar to a dutch auction, offering a fair opportunity for participation and orderly price discovery. The weighting of $CLS in the LBP decreases over the 48-hour auction. This deflationary pricing mechanism discourages front-running and sniping, lengthening the participation window and reducing price volatility during the auction.
The LBP enables participants to purchase tokens patiently without fear of missing out, as the deflationary mechanism will suppress the price over the entire LBP duration.
The result is that whales are disincentivized from buying all the tokens at once at launch, giving more buyers a chance to catch the token at a fair price. Another important result is that it is not as expensive for the founding team to provide the initial liquidity necessary to facilitate the pool.
Thus, LBP allows projects to create meaningful liquidity and distribution at launch in a capital-efficient way.
⬇️DETAILS:
