Degis & Avalaunch IDO Price Protection
Degis & Avalaunch IDO Price Protection designed to protect newly IDO tokens launched by Avalaunch from the high volatility of the crypto market.
Even if the token price falls below the IDO price, you will be compensated for buying IDO Price Protection, so no more worries about losing your assets in the IDO process!
The mechanism of IDO Price Protection
Degis & Avalaunch IDO Price Protection is developing on the model of Degis Price Protection, check here for the detailed mechanism and time arrangements for Price Protection >> https://degis.medium.com/all-about-naughty-price-protection-9959d3a95189
Initial Matching:
There are 24 hours of Initial Matching to match the initial price for the protected IDO token. Initial Matching takes place at the same time as the IDO registration.
During this period, liquidity providers can freely deposit or withdraw stable coins into the pool by setting the price for the IDO protection token. By adopting this mechanism, the initial price of the AMM trading pool is 100% determining by liquidity providers. The final ratio will be set according to the deposit proportion on both sides of the pool when the deposit period ends.
Check here for the detailed intro for Initial Matching: https://degis.medium.com/initial-matching-and-public-testnet-announcement-3cdf3b77ed3c
Trading Period:
The default duration of the trading period is 14 days and may be adjusting to different cases. IDO protection tokens can be freely trading during this period. Mining function is also available during this period.
Settlement:
The trigger price will be setting equal to the IDO price, which means that the protection token holders will be compensating if the final token price is lower than the IDO price on the expiry date.
A frequent sampling method determines the final price on the expiry date. Starting from two days before the expiry date, The sampling process conducts every four hours to collect the token price, the final price determines according to 12 sampling times in total.
About Degis
Degis offer crypto asset protection products for users. To hedge their risk and protect their vulnerability against token price volatility and smart contract hacks.
About Avalaunch
Avalaunch is the first protocol, exclusively for the Avalanche ecosystem. To offer promising and innovative projects a fast, secure, and efficient platform for decentralized fundraising.
SOURCE:
https://degis.medium.com/introducing-the-ido-price-protection-60befa1acc8
