Thales DAO token public liquidity offering
Thales 🤝 DODO: A quest for a fair distribution
After having done lots of research on how to best conduct a public token offering, evaluating all the options presented to Thales core contributors, and looking for an optimal implementation where most people would feel included, we decided to go with DODO and their crowdpool solution.
DODO variable-price crowdpool is a public liquidity offering mechanism that is inspired by the call auction method. It allows for natural price discovery and, at the same time, a fair distribution to all participants for the same final price.
Sounds cool, right?
We’ve prepared a step-by-step guide on how to participate at the end of this article, so you can feel comfortable when interacting with DODO for the event. If you are eager to read it just scroll down and you’ll find it ✌️, but if you feel like you want to know some more beforehand keep reading.
DODO’s crowdpool mechanism
Once the liquidity event starts, as the number of funds deposited by participants increase, the price will move up following a bonding curve. This bonding curve’s shape will be defined by the initial parameters set up from the crowdpool creation.
You can check this cheat sheet with said parameters for the THALES token crowdpool:
Amount of tokens for distribution: 2,000,000 THALES (2% of total supply)
Participation requirements: Ethereum wallet with USDC and ETH for gas fees
Starting price: 0.5 USDC
Token price hard cap: 2.5 USDC
Total commitments soft cap: 5,000,000 USDC
Crowdpool duration: 48h
Cooling off period duration: 12h
Crowdpool Start: Monday, September 13th, 2021, 14:00 UTC
Crowdpool End and Cooling off period start: Wednesday, September 15th, 2021, 14:00 UTC
Cooling off period end: Thursday, September 16th, 2021, 02:00 UTC
What’s the difference with other public token offerings?
During the crowdpool, participants have no limits on the size of commitment and can deposit and withdraw as many times as they want.
With an increase in deposits, the effective price moves up until deposits reach 5,000,000 USDC.
After the deposits reach 5,000,000, the price stays fixed at 2.5 USDC and all the excess funds above 5,000,000 USDC get refunded to all participants proportionate to their allocation.
For example, let’s say the crowdpool ends with 7,500,000 USDC total deposited. This means that each participant will get refunded 33.3% of their committed USDC, and the rest (66.6%) will be converted to THALES.
With this mechanism, the potential risk of front running is removed and there is no rush to deposit for participants. Each participant gets the same proportional allocation regardless of the timing of commitment.
When the crowdpool duration of 48 hours ends, the 12 hours cooling off period begins. The cooling off period can be seen as a final check phase for all participants during which they have one last chance to reconsider their commitment.
During this period, participants can only choose to withdraw USDC, they cannot deposit more. Withdrawing during the cooling-off period has the same final price impact as withdrawing during the crowdpool.
After the cooling-off period finishes and the crowdpool is settled, participants are able to claim their THALES tokens and, in case of crowdpool oversubscribing, their share of refunded USDC.
Now, let’s get to the guide!
Guide to Thales crowdpool participation
Navigate to THALES token crowdpool event using this link:
There are three phases of THALES token crowdpool event on DODO:
- Bidding phase
- Cooling off period
- Claiming phase
Let’s look at those step-by-step, shall we?
- First, you need to connect your Ethereum wallet by clicking a button on the top right corner that says “Connect to a wallet”.
- Make sure you are connected to Ethereum Mainnet.
- Check the Terms of Service and click the checkbox once you’ve understood those, select Ethereum network and a wallet to connect to (like Metamask, Coinbase wallet, etc).
- When arriving at the main Thales crowdpool page you’ll see lots of information. We created the next image to highlight the position of key elements related to the current state of the crowdpool.
- After connecting your wallet, the next step is to allow DODO to spend your USDC. This is done by inputting the amount of USDC you are willing to commit to the crowdpool, clicking on the Approve button and confirming the transaction. See images below.
- Submit the transaction and wait for confirmation.
- Once the approval transaction is confirmed, it is time to commit your USDC to the crowdpool.
- After writing down the amount of USDC you wish to commit on the USDC field, you’ll be shown how many tokens you are expected to receive for your deposited amount at the current token price.
- Click on the Add button and confirm the transaction.
- If you want to commit more USDC to your allocation, after inputting additional USDC to the input field, Total Expected To Receive will be showing a sum of tokens expected to receive from past commitments and new inputted commitment.
- Optional step: If you‘d want to remove your USDC, navigate to the Remove tab, and write the amount of USDC you wish to remove on the input field. The Total Expected to Receive will adjust, and show the reduced amount of THALES tokens you are expected to receive after the removal. After inputting the USDC amount, just click on the Remove button and confirm the transaction on your wallet.
Cooling off period
- Once the crowdpool bidding phase is over and the End countdown expires, the 12-hour Cooling-off period begins and the crowdpool will no longer accept deposits.
- During this stage, only the Remove tab is available for participants to review the crowdpool results and reconsider if they are comfortable with their position. If a participant wishes to remove USDC, the process is the same as in the previous phase of the crowdpool.
- After the Cooling-off period is finished and the market is settled, participants can claim their THALES tokens and a portion of their USDC as a refund in case of crowdpool oversubscription.
- Click on the Claim button and confirm the transaction. See image below.
- After the transaction goes through, THALES tokens (or THALES tokens and refunded USDC) will be deposited into your wallet.
- That’s it! 🙌
If you still have questions regarding this liquidity offering event we invite you to join our Discord and solve all your doubts!
And if you’ve read until here, you surely deserve this next piece of alpha: Not long after the crowdpool event ends, incentivised THALES/ETH liquidity pool will be launched on DODO exchange with dual LP rewards of THALES and DODO tokens.
Stay tuned for more!