BreederDAO, a Philippine-based ‘NFT factory’ platform, has announced that it will deploy its Token Launch Auction (TLA) on Copper, a platform for facilitating Balancer’s Liquidity Bootstrapping Pool (LBP)
The much-awaited TLA will be launched starting April 26, 2022 (2:00 UTC) and will open new doors for ecosystem stakeholders.
How Does BREED’s TLA on Copper Work?
Copper is one of the most respected platforms in the blockchain industry when it comes to a completely transparent and decentralized Token Launch Auction.
Out of all of the available platforms in the field, the BreederDAO selected Copper for its proven capabilities in price discovery and fair distribution.
Thanks to Copper’s decentralized nature, BreederDAO’s TLA will be free and accessible to any interested individuals or parties.
Also, the TLA has been translated into various languages including Japanese, Korean, Spanish, and Ukaranian to accommodate interested parties outside the United States.
But most importantly, it eliminates the need for whitelists, individual caps, and high gas fees, which are aspects or limitations that usually reduce opportunities for TLA participants.
BREED’s Price Development
When BreederDAO’s TLA kicks off, the pool’s weight will be set at 96:4 (BREED/USDC), and this weight will continue to decrease throughout the launch period until it reaches 50:50.
During the TLA’s 3-day duration, participants can swap their ETH, USDC, WETH, and DAI for BREED tokens, and since there are no trading activities, BREED’s price will continue to go down until it reaches a weight ratio of 50:50.
Every time BREED is bought during the TLA, its price will automatically increase, and this is exactly how the BREED price will be set and discovered by the market.
TLA participants will be given enough time to watch the BREED market development, so they can narrow down on the ideal entry price.
Participants are also reminded that specific consequences have already been set for activities related to bots and price manipulation.
Automatic Weight Adjustments
Copper is powered by the Balancer Protocol’s Liquidity Bootstrapping Pool (LBP), a process that involves pairing two tokens and adjusting their relative weights automatically.
Through these automatic adjustments, LBP is capable of high to low price discovery throughout the token launch.
LBP’s advanced process equips participants with seamless capability to determine a fair price for the BREED token.
Balancer Protocol is an automated portfolio manager, liquidity provider, and an open-source platform rolled into one, and Copper’s use of its LBP service will certainly help streamline BreederDAO’s TLA.
Another notable thing about Balancer’s LBP is that its token pair’s weights are flexible and can change over time; compared to other liquidity pools where token pair ratios are stuck at 50:50.
Balanced Price Discovery, Reduced Volatility, and More
The BreederDAO team expects that at the end of the launch, its BREED token can finally attain a stable price discovery.
Once this goal is achieved, the BREED token will be more attractive for liquidity providers and can finally eliminate their fears of high volatility levels.
Through its launch on Copper, the team is confident that it can achieve a more stable price discovery process, enough liquidity for the BREED token, and robust token distribution.