Bootstrap is designed to help bootstrap liquidity of a token pair, enabling liquidity pools to be created with greater capital efficiency during initial allocation and price discovery. It will separate the process of price changes, pair allocation, and liquidity construction, thus creating more reasonable exchange rates before trading, and effectively avoiding pre-emptive trading, etc.
Bootstrap a liquidity pool generally contains the following parameters:
- End block height: liquidity pool cannot be started before a specific block height.
- Minimum target provision of token A: minimum liquidity requirements of token A.
- Minimum target provision of token B: minimum liquidity requirements of token B.
- Maximum target provision of token A: the liquidity hardcap of token A.
- Maximum target provision of token B: the liquidity hardcap of token B.
The liquidity pool can be started only if the following conditions are met:
- End block height exceeds.
- The minimum target provision of token A and B have been achieved.
Note: if any of the above conditions are not met, Bootstrap fails and cannot enable liquidity pool through Bootstrap.
A complete Bootstrap process should contain the following states:
- Ongoing: refers to the state in which all set goals are in progress.
- Success: the state in which all conditions are met and a liquidity pool is enabled.
- Failed: a state in which at least one set goal has not been achieved when the block height has been reached.
- Trading is not allowed.
- Users can add liquidity to either Token A or Token B only, or to both Token A and B at the same time. The real exchange rate of Token A and B will be known only after the Bootstrap is completed.
- You should participate in Bootstrap only if you want to be the liquidity provider of a trading pair, and users should understand the problems related to the liquidity provider and the risks before participating in Bootstrap.
LP tokens are vouchers to add liquidity to the liquidity pool. The LP share (= your LP tokens/total LP tokens) is the proportion of the liquidity contribution of a particular pool, for example, token A-B pool. LP tokens will be generated and opened for claiming only after the Bootstrap is successful and completed (the user must manually claim the LP tokens).
The following formula is used to calculate the LP tokens after contributing to the Bootstrap pool:
There are two situations that occur after the end of the Bootstrap:
(1) Bootstrap is successful
- Users need to claim their own LP tokens after the completion of Bootstrap.
- Token A-B pool will be enabled and open for trading.
(2) Bootstrap failed
- The user manually redeems the tokens provided when adding liquidity (Token A or B or Token A & B)
Once Bootstrap is successful, LP tokens will be allocated to all users who add liquidity during the Bootstrap process, and users can claim them in the following ways (generally speaking, after a successful Bootstrap, there will be a settlement period of several hours before users can claim their LP tokens):
- Check "My Bootstrap", select the Bootstrap that you participated in and completed successfully, and click claim.
- After signing and confirming the transaction in the wallet, you can complete the application for the LP token, and then you can find the LP token on the "Pool" page.
If Bootstrap fails, users need to manually redeem their contributed tokens:
- Check "My Bootstrap", select the Bootstrap that you participated in and failed, and click redeem.
- After signing and confirming the transaction in the wallet, you can complete the redemption of the token.
If you are a developer and want to be able to use the Bootstrap program to achieve certain liquidity goals and list your Token with the help of the community, then you can submit your application by filling out this form: https://forms.gle/RYPZgxhHBHf7UkSH6.