Liquidity Raising

Introduction

Discover the internal workings of the 0Fx Protocol Liquidity Raising, a groundbreaking initiative on the DODO platform on the Optimism blockchain. This guide outlines the step-by-step process to ensure a thorough understanding.

DODO Platform: A Trusted Solution

The 0Fx Protocol Liquidity Raising relies on the DODO platform, renowned for its security and transparency. Audited by major companies like Certik, this choice allows 0Fx Protocol to dedicate its budget to actual development rather than unnecessary expenditures.

Token Distribution

  • 25% Direct Sale to the Community:

    • A quarter of the max number of 0Fx tokens is sold directly to the community in direct sale.

  • 25% for Liquidity:

    • Another quarter is used as liquidity, locked for one month with the raised amount in USDT to ensure stability and liquidity for investors.

DODO Crowdpooling Campaign

  • Transparency and Security:

    • The DODO platform offers a crowdpooling campaign, ensuring transparency and security.

  • Flexible Investment:

    • Participants can deposit any amount of USDT during the three days of the campaign, with the option to add funds even if the total is reached.

  • Optimized Distribution:

    • Token distribution is based on the total number of participants and their proportion of the total investment, optimizing distribution.

    • When the campaign comes to her end only $125,000 is taken in proportion to the contributions made by the participants and any excess unused USDT is automatically returned to its owner.

What happens if we don't reach the $125,000 hard cap?

If the hard cap of $125,000 is not reached, the unsold tokens will automatically be added to the liquidity pool. The USDT raised will cover only a portion of the slope proportionally based on the contributed amount in relation of the total, rather than covering the entire slope as it would have if the hard cap had been reached at 100%.

Smart Contract Mechanics

  • Creation of the Liquidity Pool:

    • 100% of the collected USDTs, along with undistributed 0Fx tokens, creates a liquidity pool.

  • LP Token Lockup:

    • LP tokens are automatically locked for one month, using the entire liquidity raised amount as liquidity for the 0Fx token market.

Post-ICO Phase

  • Smart Contract Fees:

    • DODO charges 0.10% per transaction in the liquidity pool. The 0Fx Protocol team intentionally adds 0.50% in fees, redistributed to the community.

Liquidity Migration to Uniswap

  • Standardization Option:

    • After the lockup period, the team plans to transfer liquidity from DODO to Uniswap, encouraging the migration of liquidity providers by redistributing all the fees taken on DODO in a liquidity mining campagn with Uniswap liquidity offering a more standardized solution to the user.

Sustainability and Future Developments

  • Liquidity Mining Campaigns:

    • Throughout the development of the minimum viable ecosystem, fees collected on the liquidity held by the team will be redistributed through liquidity mining campaigns creating an interesting ROI encouraging liquidity providing on the 0Fx/USDT pair.

This comprehensive ICO structure ensures not only a safe and transparent fundraising process for investors but also establishes a foundation for the long-term sustainability of the 0Fx Protocol. Stay tuned for the ICO launch and join us in this exciting journey towards the future of decentralized finance!

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