MILK Liquidity Pool bootstrapping event
What exciting weeks! On September 23rd we launched our new and redesigned website and less than two weeks later on October 5th we performed our biggest upgrade of the year – the launch of the Plutus v2 smart contracts and liquidity pools.
But we don’t stop there! In anticipation of the third and final step of our MuesliSwap V2, Yield Farming, we decided to make one Liquidity Bootstrapping Event, LBE for short, for our native $MILK token.
Event overview: MuesliSwap liquidity bootstrapping event
– Start date: 12th of October
– Deadline: October 22nd
– Maximum available MILK for this campaign: 500,000 MILK
Inspired by MinSwap’s Collective Zap-In, this event will help significantly increase liquidity in the MILK/ADA liquidity pool.
We achieve this by conducting a collective zap-in where users deploy ADA while the corresponding MILK tokens are deployed by the MuesliSwap team. In fact, 50% of the total liquidity value is provided by the community while the other 50% is provided by the MuesliSwap team.
The idea works like this: you can add ADA to the collective zap-in pool you get for MILK LBE tokens The added ADA will be automatically paired with the MILK provided from the MuesliSwap treasury and added to the MILK/ADA liquidity pool throughout the event. The share of the liquidity pool is represented by liquidity pool tokens. These liquidity pool tokens are accumulated during the 10-day campaign and then linked to the MILK LB token.
After the bootstrapping event MILK LBE Tokens can be exchanged for Liquidity Pool Tokens (LP) – equivalent to 50% of the total Liquidity Value. The remaining 50% of LP tokens will become Project Owned Liquidity (POL).
The pairing occurs at the current MILK/ADA price in the MuesliSwap pool as liquidity tokens are accumulated. As liquidity tokens are accumulated throughout the event, the effective price for each user is averaged over the entire time span of the event.
During the event, users will not be able to withdraw their ADA as it will be immediately paired with MILK and added to the liquidity pool.
The Milk LBE tokens that you will receive at the end of this event can be used in a special farm and will generate higher yields for four weeks. Of course, all Milk LBE tokens can still be redeemed after these four weeks.
Not only do you receive higher return premiums, but you can increase your earnings even further by using one of our offers Hungry Cow NFTs!
Of course, you can still participate in yield farming without Hungry Cow or Milk LBE tokens, but you will not receive increased yield rewards for the MILK/ADA pool.
Let’s say Tim wants to take part in this LBE. This is what he must do and what to expect:
- Sometime between October 12th and 22nd, Tim goes to muesliswap.com, connects his wallet and goes to the launchpad
- Tim delivers 100 ADA and receives 100 Milk LBE
- In the following 4 weeks after the LBE, Tim can use his Milk LBE tokens to earn increased yield rewards in the MuesliSwap MILK/ADA pool.
- *IF* Tim has an additional Hungry Cown NFT with a 10% bonus and uses the NFT, his earnings will be increased by 10%.
- At any time after the 22nd, Tim can exchange his MILK LBE tokens for regular MILK/ADA pool LP tokens and use them freely to wager or withdraw his liquidity.
This is a new idea to further promote the MILK token and create POL that will benefit the whole MuesliSwap community.
Please note that the 500,000 MILK provided is a maximum amount and we will only provide as much MILK as ADA has committed to the campaign. In addition, approximately 50% of the MILK provided as part of the campaign will become part of the Project Owned Liquidity (POL).
You can read more about liquidity pools here.
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Update: Rephrased example showing Hungry Cow staking. Added paragraph about pricing of MILK on delivery of ADA.
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