- The White Whale team combines LBP and POL to start their protocol-owned liquidity group.
- Instead of using the LBP release mechanism, they modify the contract.
- The success of the experiment led the team to call the event “THE BOOTSWAP.”
The DeFi world has proven to be the revolution that the crypto space has been looking for for a while now. In a short period, DeFi brought with it more innovations, such as Liquidity Bootstrapping Pools (LBP), which has to be one of the fairest token distribution models, and Liquidity Property Protocol (POL) which is arguably the tag line of DeFi of the year.
This week, DeFi has taken another step towards creating crypto not just for whales but for everyone as well. For the first time, LBP and POL were tested together on a larger scale, to the extent that respectively, both have been widely adopted this year.
In particular, the White Whale team merged these two concepts and leveraged an LBP to start their liquidity pool owned by the protocol. But instead of using the LBP launch mechanism, which Balancer initially used as a fundraising mechanism, they opted to make some adjustments to it.
At this point, they modified the contract to withdraw all equity at the end of the event directly from the LBP contract to the White Whale Treasury. Thus, ensuring that none of the money was claimed by the team or the developer entities. Instead, it instantly became what is known as POL, or Liquidity Property of Protocol.
Also, after seeing the result, the experiment was an unprecedented success, the team called the event “THE BOOTSWAP”. Without false price manipulation and bot interference, all retail investors who wanted to participate were able to buy WHALES at fair IDO price levels in the first few days of trading.
Additionally, the protocol was able to launch with a liquidity pool worth more than $ 20 million and an additional UST of more than $ 6 million, all owned by the BOOTSWAP Protocol Treasury. Furthermore, White Whale will not have to rely on token issues from mercenary LP farmers as a means of renting out its cash pool, as it owns its entire cash pool from the start.
Since the event, the White Whale team has already announced that since they were able to build up a deep enough protocol-owned liquidity pool from BOOTSWAP, they now have no immediate plans to incentivize LP farming, meaning that White’s protocol Whale will be zero. broadcast protocol from the beginning.
Above all, the team has also noted that because the Treasury owns virtually its entire pool of liquidity, not only will they not need to rely on issues for liquidity, but they can and are currently designing a model that will maximize capital. efficiency of the POL that will exert a constant passive purchasing pressure on the group.
In addition, because White Whale will own its liquidity from its inception, they are methods that we are currently devising to maximize the capital efficiency of Treasury LP tokens and apply constant passive expansion pressure on the group, more details on this below .
– White Whale (@WhiteWhaleTerra) December 15, 2021
As all the details will be announced soon, the team says they will put their LP capital to work and get a return on it. Since the project has its own liquidity, they can do anything with it to make it more efficient, in the same way that users would with whatever DeFi assets they have.
This means that instead of constant selling pressure on the token due to issues, you will now have constant buying pressure, due to owning your pool of liquidity. Clearly, BOOTSWAP has set a new standard not only for fair token launches, but also for Protocol Property Liquidity best practices.