Pioneers,

On 15th May 2022, 1.1 million KSM will get unlocked and search for a new home. To commemorate the event, Mangata X will be holding the MGX-KSM Liquidity Bootstrapping Event shortly after the Unlock and offer KSM holders the opportunity to join one of the most important liquidity pools of this new ecosystem.

We currently are validating our features on the testnet. If all goes well, we can begin the bootstrap in the week of 16th May. Follow our socials at the end of the article to get updated as we release new information.

This post will explain the goals, mechanics and process of the event. It will contain links to all resources that we have created. If you want to help a friend understand the bootstrap, kindly send them a link to this blogpost.

If you want to be part of the bootstrap, unstake your KSM now!

A video presentation of this article can be found here:

What are the goals of the MGX-KSM Liquidity Bootstrapping Event?

A bootstrap has two primary goals:

  1. Ensure deep liquidity on our first MGX-KSM liquidity pool.
  2. Discover the MGX price

Since this is the first ever MGX liquidity pool, by definition it will also serve price discovery. Additionally, there is a third goal that we have designed for this bootstrap:

  1. Give a chance to initial supporters to get a minimum allocation

How does the MGX-KSM Liquidity Bootstrapping Event work?

The process is as follows:

  • The whole bootstrap will last one week
  • No trading is possible until the bootstrap is complete
  • MGX and KSM holders can single-sidedly provision liquidity into the pool. That means they can contribute tokens from each side and don’t need to hold both tokens.
  • Ratio Cap: The amount of KSM is limited by the amount of MGX provisioned. This ensures that KSM contributions are limited and offer a ratio that allocates a minimum amount of MGX
  • 2 Phases:
    • Whitelist period (3 days): In the whitelist period, only whitelisted KSM holders can contribute to the pool. All MGX holders can participate
    • Public period (4 days): In the public period, everyone can participate

What is the timeline for the MGX-KSM Liquidity Bootstrapping Event?

The bootstrapping pallet is currently being deployed on the testnet. If all tests pass validation, the following procedure will be set in motion:

  • Onboard more collators - This ensures technical decentralization
  • Token Generation Event: The TGE will distribute all tokens as defined in the Mangata X Tokenomics. Crowdloan rewards will also be distributed during this phase.
  • KSM transfers enabled: The frontend will enable users to transfer KSM to and from Mangata X
  • MGX-KSM Liquidity Bootstrapping Event: 7 days, as outlined above
  • Trading begins

After trading begins, our focus will shift to opening channels to other parachains and listing more tokens on Mangata X. Check the Mangata X Roadmap for more details.

Resources

Make sure to stay in the loop!

  1. Join the Mangata X Newsletter at x.mangata.finance
  2. Join the Discord
  3. Follow us on Twitter: @MangataFinance