Using Balancer Liquidity Bootstrapping Pool
While InsurAce has successfully closed the strategic round fundraise and launched the product on Rinkeby Test-net, we’re planning to launch the initial token distribution event via the Liquidity Bootstrapping Pool (LBP) on Balancer. We believe that LBP will help create an equal and fair launch as well as achieve price discovery to the INSUR token. The event will run from UTC 14:00:00 March 15th, 2021 to UTC 13:59:59 March 17th, 2021, lasting for 48 hours.
About InsurAce Token (INSUR)
The InsurAce platform will issue a standard ERC20 token, INSUR, as the governance token to incentivize participants in the ecosystem.
The current use cases for INSUR token are as follows:
Representation of voting rights in community governance such claim assessment, proposal voting and strategic decisions, etc.;
Mining incentives for liquidity support to insurance risk underwriting, capital provisions to the insurance pool and investment products;
Eligible for taking a share of fees generated by InsurAce protocol through project involvement, community contribution and governance participation;
Community and ecosystem incentives.
With the continuous development of InsurAce Protocol, more values will be added to INSUR token via community governance.
Token Distribution Plan
The supply and allocation plan for INSUR is designed as such:
- Total supply: 100M INSUR
- The distribution plan for the tokens is as shown in the tables below.
The total amount of tokens vested will be 6,675,000 after LBP ends and initial listing on DEX.
The above token distribution plan may be subject to changes via community governance in the future.
INSUR Token Launch on Balancer LBP
About Balancer LBP
Balancer LBP has been recognized and adopted by many great projects as the preferred way of initial token launch. LBP is a tool designed for projects to launch their tokens with liquidity generation and price discovery. It also helps to prevent front-running and speculation of normal auctions.
Unlike normal liquidity pools on Uniswap and/or Sushiswap where the weightage of the token pairs is fixed (normally 50:50), the balancer LBP trading will start with an initial price of the token and a predefined weightage (e.g., 90:10) which will change over time. At the end of the program, the weight-age will reach the predefined levels (e.g., 50:50) whereas the price will reach an equilibrium.
To understand more about the LBP, please refer to this article from balancer.
$INSUR LBP Program
The InsurAce LBP program will start from UTC 14:00:00 March 15th, 2021 to UTC 13:59:59 March 17th, 2021, lasting for 48 hours. The starting price for $INSUR is set at USD $4.50, and the initial weightage of INSUR to USDC is set at 90:10 and the ending ratio will be at 50:50. The key parameters are shown in the table below.
INSUR LBP Key Parameters
If there is no buy and/or sell during the program, the price will eventually reach its low end at the end of the LBP program as illustrated in the below graph.
Meanwhile, the INSUR token’s fully diluted value (FDV) will change as below:
The complete simulation of the program can be viewed in this Excel.
After the LBP ends, the InsurAce team will launch liquidity pools on Uniswap, Balancer, and/or other DEXes. More information will be provided soon.
How to Participate
- To participate in the LBP Program, you need to have a crypto wallet that Balancer supports. Currently, Balancer supports the following wallets.
2. Navigate to InsurAce LBP page (lbp.insurace.io). You will be able to see the key information displayed for the LBP sale, including “LBP Time Remaining”, “Current Price”, “INSUR token Remaining”, “Fully Diluted Valuation”, as well as a real-time price chart in the middle.
3. Click the “Buy $INSUR on Balancer LBP” button in the middle, and you’ll be directed to the token swap page on balancer, where you can swap INSUR token with USDC or other tokens you have in your pocket. Note that for non-USDC tokens, balancer will do a smart routing to eventually swap with INSUR token.
4. After the swap transaction is confirmed, you should receive INSUR tokens in your wallet. If you’re unable to find the INSUR tokens, please add INSUR token symbol into your wallet.
The token address of INSUR is:
5. Meanwhile, all our community channels (Telegram, Discord, Twitter, WeChat, Forum) will be open to provide you with full support. Please don’t hesitate to contact the team via any of these channels.
Important Reminders ⚠️
One important reason for using a balancer LBP for token distribution is to effectively prevent front-running and speculation. The sale token normally starts at a high price and eventually converges to some lower price (could also be higher than the starting price) per the buy/sell transactions made during the process. There’re a few important reminders we would like to make for your kind attention.
Don’t race to buy
Balancer LBP is not Flash Sale! You don’t need to rush to buy INSUR tokens at the start of the sale unless you want to secure the tokens as early as possible. The starting price is normally set at a relatively higher level, but it will fall in the absence of buying demand. The better strategy would be to wait till the price falls to your desired valuation, and you can execute your orders.
Watch Your Gas and Slippage settings
The Balancer LBP is an Ethereum smart contract, so it costs gas to interact with it. While there’s no limit to the number of transactions you can make, remember that it will cost gas every time.
Also, make sure you adjust your gas settings to ensure that the transaction completes in a timeframe you’re happy with. All transactions sent to the pool with sufficient gas should complete, but if you set a low gas then it could take some time. In addition, please watch out for your slippage settings.
Don’t create INSUR liquidity pools on other DEXes
While the LBP is in progress, and you have acquired your INSUR tokens, please don’t create liquidity pools on other DEXes (Uniswap, Sushiswap, etc) on your own. InsurAce team will launch the liquidity pools on such DEXes after the LBP ends.
Acknowledgments
We would like to take this opportunity to thank Perpetual Protocol for sharing their valuable experience in using LBP and awesome simulation models.
Social Media Links
Telegram Community: https://t.me/insurace_protocol
Telegram Announcement: https://t.me/InsurAce_Channel
Twitter: https://twitter.com/insur_ace
Discord: https://discord.gg/vCZMjuH69F
Medium: https://medium.com/insurace
Forum: https://forum.insurace.io/
Website: https://www.insurace.io/
