Who should join the Price Discovery mechanism ?
Price Discovery is designed to mitigate the volatility that is inherent to any new listings and to help align the interests of market participants without any incentives for speculators or bots. It offers advantages for buyers, sellers and long term supporters alike.
- Buyers who want to grab a share of the tokens as early as possible - there are a lot of great reasons one would want to join Itheum in their journey from the Maiar Launchpad towards the new Web3 data economy. Joining in the price discovery phase can be a great opportunity of securing ITHEUM tokens as early as possible, before even more people have a chance to understand its potential.
- Sellers who want to protect their contribution and make room for more participants to join - if you are lucky enough to already own ITHEUM tokens, you might want to recover some of your initial contribution, while at the same time giving the opportunity for more people to own a piece of the Itheum project and join you on your common mission of helping it become a success.
- Liquidity Providers can deposit Regular and/or Locked tokens and get up to 1000% APR by staking LP tokens - smart DeFi actors will want to benefit from the excitement around a new hot token getting listed on the Maiar DEX. The reduced volatility will keep Impermanent Loss to a minimum, while interest around the trading start will still generate significant volume that LPs will want to grab as many of the resulting fees as possible. Better yet, staking LPs in the farm will yield up to 1000% APR in the first 7 days.
Price discovery: April 25, 16 UTC - April 26, 16 UTC
- Phase 1: Deposit & Free Withdraw April 25, 16:00 UTC - April 26, 08:00 UTC
The initial phase will allow everyone to deposit ITHEUM and EGLD tokens. The price will reflect the deposited amounts. If participants decide to withdraw tokens, they can do so without any penalty.
At this stage the Itheum project will deposit 12,500,000 ITHEUM - 50% of the tokens allocated for "Liquidity" as per the projects' tokenomics.
The lockedEGLD that will result at the end of the Price Discovery process will be added as liquidity, together with the remaining 12,500,000 ITHEUM tokens allocated for liquidity. This will be done before Trading Start, to consolidate the price discovered by the market.
- Phase 2: Deposit & Up to 10% Penalty Withdraw April 26, 08:00 UTC - 12:00 UTC
In this phase deposits are still possible. As sufficient time will have passed for the participants to indicate their intentions, a range of the final price becomes apparent. Participants who think this range is outside of their interest area can still withdraw, but at a penalty that increases over time up to 10% at 13:00 UTC
- Phase 3: 10% Penalty Withdraw (No more deposits) April 26, 12:00 UTC - 16:00 UTC
As the participants in the previous phase could make their decisions at a lower penalty, the range of the final price becomes even more clear. Deposits are no longer possible here and participants who chose to withdraw will incur a hefty penalty of 10%.
Claim Tokens & Add Liquidity & LP Staking: April 26, 16 UTC
This is the time when the Price Discovery mechanism ends, and the new ITHEUM market price is known. The price will be calculated by the ratio of ITHEUM to EGLD resulting from the amounts of tokens deposited in the price discovery smart contract. The ITHEUM USD price will consider this ratio and the real time EGLD USD price.
Participants will now be able to Claim the tokens. Those who deposited EGLD will get locked ITHEUM tokens. Those who deposited ITHEUM will get locked EGLD tokens.
These locked tokens can be used to add liquidity, and then further to take the resulting LP tokens into the ITHEUM/EGLD farm, which will yield up to 1000% APR LKMEX rewards, or up to 100% APR MEX rewards, for a period of 7 days.
The second half of the Itheum liquidity provision - 12,500,000 ITHEUM tokens - and the locked EGLD resulted from the converting the first half in the Price Discovery process, will be deposited as initial liquidity, at the final ratio resulted from the price discovery process.
Swaps Enabled (Locked tokens) April 27, 16 UTC - May 1, 16 UTC
24 hours after the participants claim their tokens, deposit liquidity and stake their LPs, trading will begin. When swapping EGLD for ITHEUM, traders will receive locked ITHEUM, and vice versa.
Time locked tokens can’t be swapped (sold) but they can be used to add liquidity. They will unlock according to the following schedule:
- Price Discovery tokens unlock April 30, 16:00 UTC
- Swaps tokens unlock May 1, 16:00 UTC
- Swaps (unlocked tokens) May 1, 16 UTC & onwards
The ITHEUM listing process will be completed and tokens can be fully unlocked. By then the token price movement should no longer be influenced by the excitement or speculation intentions around the initial listing, thus bringing the ITHEUM token price at the value set by the market.
Why is there a time lock on the tokens resulting from Price Discovery and initial swaps ?
Timelocking the tokens protects early market participants against speculators and bot operators who look to “buy low, sell high” in a short period of time.
What kind of tokens do I get during the Price Discovery phase ?
Depositing EGLD and/or ITHEUM in the Price Discovery phase returns a special metaESDT token, which has meta-data attached to it that indicates the amount of EGLD and ITHEUM deposited. This is then burnt during the claim process, when the metadata amounts are used to compute the amount of tokens that can be claimed, factoring in the final price.
Can I trade the locked tokens from Price Discovery and Initial Swapping ?
No, these tokens are not tradeable.
What happens to the penalties incurred to those who withdraw ?
The penalties collected from those who withdraw early are distributed pro-rata towards the participants who remain in the price discovery until the end. These amounts do not influence the price, but are rather distributed as a bonus to participants.
Example: Assuming that 10,000 ITHEUM are collected from all penalties, and that you deposited 1% of all the total EGLD from the price discovery, you will receive 100 ITHEUM tokens as a bonus, on top of the ITHEUM tokens you will get from depositing the EGLD. The same is valid for the EGLD collected from the penalties, which is distributed towards those who deposited ITHEUM in the price discovery process.
What is the value of lockedEGLD and lockedITHEUM ?
The locked version of the tokens retain a 1:1 value ratio to their unlocked pairs.
- 1 lockedEGLD = 1 EGLD. Unlocking 1 lockedEGLD will result in 1 EGLD
- 1 lockedITHEUM = 1 ITHEUM. Unlocking 1 lockedITHEUM will result in 1 ITHEUM
Can I add liquidity with lockedITHEUM and lockedEGLD ?
Yes. “locked” means the tokens can’t be traded, but they can be used for adding liquidity at a 1:1 value ratio to the unlocked tokens.
What kind of rewards will I get for adding EGLD/ITHEUM liquidity ?
When adding liquidity you will start earning liquidity provider fees. These are equivalent to 0.25% of every trade, proportional to your participation in the liquidity pool.
If for example the 24h volume is 10,000 EGLD, 25 EGLD will be earned by liquidity providers. If you contributed 1% of the liquidity, 0.25 EGLD will be yours. This is just an example to illustrate the concept, the actual figures will vary.
In addition, if you stake your LP tokens in the EGLD/ITHEUM farm, you can earn additional rewards. You can earn up to 1000% APR in LKMEX (locked MEX) and up to 100% APR in MEX (unlocked). You can choose the type of reward when staking the LP tokens into the farm.
What are the starting parameters for the initial EGLD/ITHEUM liquidity ?
The ITHEUM tokenomics include provisions for liquidity, released on Day 1 as part of the Community tokens. Itheum will use 25,000,000 ITHEUM - 2.5% of the total supply - to provide liquidity on the Maiar DEX.
12,500,000 ITHEUM - half of the amount - will be deposited in the Price Discovery phase. After this phase is over, the ITHEUM deposit will be converted into lockedEGLD at the price discovered by the market.
This resulting lockedEGLD, together with 12,500,000 ITHEUM tokens - the other half of the amount dedicated for providing liquidity on the Maiar DEX - will be deposited in the EGLD/ITHEUM liquidity pool, thus consolidating the price discovered by the market and offering traders with a sufficient liquidity pool right from the start.Tweet Share