Current model of DLMM starts the pool at a min-price and uses a FCFS method to distribute the tokens. This asymmetrically benefits those with most technical capabilities and setup.
Suggestion is to introduce a lottery model to distribute the initial portion of the pool to JUP stakers/voters instead.
Using Zeus launch as example, the token supply from $0.3 to $0.4 could be set aside for a lottery among JUP stakers or voters. There could be a limit proportional to the amount of voting power that each person can put up in terms of USDC. A lottery then takes place and those who wins will have their USDC taken and they will receive $ZEUS token from the launchpad. Those who did not win will get USDC returned.
The USDC collected will then populate the launchpool and form the initial DLMM from 0.30 - 0.4. This will then start the bidding at 0.40 instead.
If there are not enough subscribers to the lottery, then price can start and settle between 0.3 or 0.4
The benefit of this is that it benefits stakers and voters instead of botters in a way that can still be construed as fair.
15 Likes
I really like this idea. Or at least exploring something along this topic.
To some extent, LFG faces a similar issue to the CM issues of the hot NFT mints. At the very least we know some kind of whitelisting mechanic works better than an open season for bots to fight over pinging the candy machine.
There also could be a better solution that we haven’t discovered yet, but I definitely think we should explore ways to make the opening of the launch less bot heavy, and the easiest way to do that right now is some kind of whitelisting option.
4 Likes
Interesting approach that might effectively “ban” botters in the initial range.
However, it would still lead to botters at every price above the initial range.
The same could be achieved more easily by simply giving stakers / voters access to a certain portion of the tokens before the official launch, no?
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What you’re saying here seems to be what I’ve suggested. I am not sure where it differs haha. By having the lottery mechanism you are essentially distributing a portion to stakers/voters before the official launch, certainly they still need to pay for it because otherwise how will the price discovery or DLMM function.
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Haha, you’re totally right, sorry for that.
But the point with the “bot-shift-issue” would still remain, no? Or are bots only considered a problem if they are to get in at the absolute lowest prices?
Cause as far as I understood, they would still be first (referencing First Come First Serve) whenever the “public bidding” starts.
What I’m trying to say is that I’d like to get in earlier than the bots too, but this approach basically just shifts the problem and still punishes the “outside retail investor”.
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Hmm my sense is that bots are not “evil”… they also take on risks for providing liquidity early. If we make it too disadvantageous for them, it can also hamper the launchpool mechanics for everyone involved.
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