$PROXIE L.B.E | The NFT Way
Start 14th December — End 22nd December
Our community is preparing for the proxies’ mini-projects to become self-funded organisms to pursue the ultimate goal of Infinite Evolution.
Proxies is a community supporting individuals on the Cardano Ecosystem, building upon passions and reaching goals attached to the Dream. If this is your first time reading about our project, here is the link to take a deeper dive.
Our brand is becoming the Hub for every Web3 lover and our $PROXIE ecosystem is ready to mature. We start the Decentralized Finance (DeFi) journey now. Sustainable solutions require long term vision. One of the main objectives is owning a healthy token to secure a sustainable Proxie ecosystem. We are pleased with our token achievements so far and we dare to dream bigger with the Liquidity Bootstrapping Event. So let’s dive right in!
I. Liquidity Bootstrapping Event
On December 14th, the Liquidity Bootstrapping Event (LBE) will be launched in order to create the $PROXIE/ADA liquidity pool (LP). This article gives an outline on why the LBE method is the best choice and how we will execute it.
Providing liquidity and price discovery has traditionally been a highly capital-intensive process for projects. Certain factors need to be considered when adding a new token ($PROXIE) to a Decentralized Exchange (Dex), e.g. providing an adequate ADA capital to prevent slippage.
Our LBE entails funding the $PROXIE/ADA pool by the community and the project, through NFT minting. With this event we intend to bring enormous incentives and enable effective $PROXIE price discovery. Consequently, the project will provide the rewards to the community through liquidity yield farming. The liquidity bootstrapping strategy is the most efficient option available considering current regulations.
II. LBE Characteristics
We recommend doing your own research before participating in any liquidity pool. We also encourage you familiarizing yourself with concepts such as impermanent loss.
To clarify the LBE journey, here is a step-by-step explanation (Image 1).
1. Price Discovery Phase: This phase entails a special NFT mint that will last for 7 days and will occur on the Proxies’ official website. Here is the breakdown of the phase:
- Purpose: provide liquidity for the $PROXIE/ADA pool on the MuesliSwap DEX.
- LBE NFT will cost 110 Ada; 100 Ada will be provided as liquidity and 10 ADA will fund the minting services and token airdrops.
- There are 500 LBE NFTs available for the mint.
- The Project provides 1 Million $PROXIE token to pair with the Ada from the LBE NFT mint*.
- Project adds the LBE NFT sale Ada revenue to create the $PROXIE/ADA pool.
- The price of 1 Million $PROXIE will be discovered by the amount of Ada from the LBE NFT mint.
- Essentially 50% of the total liquidity value will be provided by the community in Ada, while the other 50% by the project in $PROXIE Token.
*Note: When LBE NFT is sold out, there is the possibility of utilizing the Proxie Shop’s $PROXIE revenue to meet community’s demand. The maximum addition is 250 NFTs/0.5 Million $PROXIE. This way we conserve the healthy $PROXIE/ADA conversion rate.
2. Reimbursement Phase — LPT Airdrop: At the end of the LBE, on the 21st December 2022, the project will transfer 1,000,000 $PROXIE along with the collected Ada to MuesliSwap Dex. Upon receiving, MuesliSwap will create the $PROXIE/ADA LP and generate Liquidity Provider Tokens (LPT). Accordingly, LPTs will be airdropped to the LBE NFT holders. Each NFT holder will receive the proportional amount of LPT for the NFTs they hold at the time of the snapshot after the pool is created*. 50% of total LPTs will be airdropped and the other 50% of LPTs will become Project Owned Liquidity (POL).
*Note: To be eligible for the LPT Airdrop the LBE NFTs must be in your wallet and nowhere else.
3. LP Staking Phase — Farming: After having obtained the $PROXIE/ADA LPTs, the Staking Phase begins. All interested parties will be able to stake $PROXIE/ADA LPTs in the yield farming pool to earn $PROXIE tokens and the bonus reward in $MYIELD tokens from the DEX*. LBE NFT participants who obtain and stake their $PROXIE/ADA LPT will have yield farming rewards of ~50% Annual Percentage Rate (APR).
Note*: At the start of staking your LPT, you will have the possibility to lock one Hungry Cow NFT with your LP tokens. This will allow you to boost your yield rewards on MuesliSwap. Each Hungry Cow is unique and has a unique boosting factor percentage.
III. Fruits of the LBE NFTs — Journey II
Holders of the LBE NFTs enjoy extra rewards by simply holding them in their wallets. Here is how: the NFTs that have been minted during the LBE provide extra utility. In total 20% of $PROXIE revenue from the Proxie Shop will be proportionally airdropped every 3 months for the duration of 1 year to all LBE NFT holders (see Image 2).
Note*: The first 5 months, the Proxie Shop has accumulated ~700k $PROXIE in revenue. After the liquidity pool is set up, a major evolution will happen in our Proxie Shop, which will bring new features and new products, thus more rewards.
We encourage you to get involved in the community, in Discord and Twitter. Ask questions and educate one another. This is an exciting time for us all and we look forward to a successful Liquidity Bootstrapping Event.
For more information and social media click this link.
Disclaimer: Cardano Proxies holders have ownership over their respective intellectual property. All holders are free to utilize the Cardano Proxies branding in their own for-profit and non-profit endeavors. The proxies’ team has not allocated a monetary value to the $PROXIE token. $PROXIE has never been sold in an ICO or investment group. It serves as a means of communication. No material produced by the Cardano Proxies team should be construed as legal or financial advice.
