To discover the initial price of MGX and make sure there is a stable price and sufficient liquidity in the very first MGX-based liquidity pool, we are holding an MGX-KSM liquidity bootstrapping event. The event will offer an exclusive phase where whitelisted community members ONLY can contribute, followed by a public phase. This article explains the liquidity bootstrapping event and whitelisting process.

EVERYONE who wants to be whitelisted for the bootstrap needs to participate in the whitelisting process! The whitelisting ends on 19th April 6am UTC.

How does the Liquidity Bootstrapping Event work?

We have 3 Goals for the bootstrap:

  1. Bootstrap the very first MGX-based liquidity pool
  2. Give a chance to early supporters get an allocation with guaranteed valuation
  3. Ensure deep liquidity to increase price stability

The Mechanics will be as follows:

  • The MGX-KSM pool gets bootstrapped for 1 week
  • No trading is possible until the bootstrap phase is complete
  • Single-Sided and Double-Sided Provision is allowed
  • Deep Liquidity: Pool is locked until criteria is reached
    • e.g. a minimum of 100m MGX
    • the exact values are to be determined ahead of the bootstrap
  • Guaranteed valuation: amount of KSM is limited by the amount of MGX provisioned
  • LP share and ratio is determined at the end of the bootstrap when trading begins

This mechanism is akin to how Karura and Zenlink do their bootstraps, but with one main difference: There will be a guaranteed MGX valuation. KSM can only be contributed up to a defined MGX:KSM ratio. Only when more MGX is provisioned, more KSM can be provisioned. This serves to guarantee KSM holders do not accidentally provide above a defined limit.

MGX from the crowdloan will be allocated during TGE and will be available for the bootstrap.

We will be giving one weeks notice for KSM users to unstake their KSM.

How does the whitelisting work?

There will be 2 phases during the bootstrap:

  • The whitelist phase
  • The public phase

During the whitelist phase, only whitelisted users can participate in the bootstrap. This gives them the advantage to make use of the guaranteed valuation. If the limits are hit within the whitelist phase and no more MGX is added later, users from the public phase might not get the opportunity to use the guaranteed valuation.

To get whitelisted, follow these steps:

  1. Join the Mangata Discord
  2. Visit the #whitelist channel and follow the instructions
  3. You will be asked to send a direct message to our bot and communicate the KSM address for which you like to get whitelisted.

FAQ

You can always find the latest updates in the FAQ: Liquidity Bootstrapping article.

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