Road to 100X

Zenon ╰ Network
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Well, technically it’s 120x, but 100x is more common in crypto, so I went with that.

First of all, I would like to point out this very informative article written by @0x3639, which explains the Liquidity Bootstrap & Provisioning Campaign in great detail:

What does it mean?

In crypto, the term 100x commonly refers to finding a gem that will get you an 100x on your investment.

But in this context, it’s actually about a combo of 2 multipliers that together can go up to 120x:

  • the LP staking multiplier
  • the liquidity bootstrap campaign multiplier (new)

It is also a powerful message that can be used by the marketing and sales teams in the community and it can be applied to many aspects:

  • 100x adoption
  • 100x scaling
  • 100x tps
  • 100x speed

What’s the LP staking multiplier?

After providing liquidity in the main pool, the provider can swap their LPs to NoM and stake the received ZTS LP token for a period between 1 and 12 months and a multiplier from 1x to 12x.

What does the LP staking multiplier apply to?

When Orbital distributes the rewards, it adds all the amounts staked together and splits the rewards to each stake entry based on the percentage it represents of the total amount.

For example, if there are 3 stake entries of 20 ZNN + 30 ZNN + 50 ZNN, once you add them together you’d get a total of 100 ZNN. When Orbital distributes ~500 ZNN, it will split the ~500 ZNN between all the stake entries, so the 20 ZNN entry will get 20% of the ~500 ZNN, which is ~100 ZNN.

However, if the 20 ZNN entry is staked for 12 months, with a multiplier of 12x and the other 2 entries are staked for 1 month with a multiplier of 1x, then the total would be calculated as 20 ZNN * 12 + 30 ZNN + 50 ZNN = 240 ZNN + 30 ZNN + 50 ZNN = 320 ZNN. This means the 20 ZNN entry now gets a 75% share of the ~500 ZNN rewards, which is ~375 ZNN.

What is the liquidity bootstrap multiplier?

The Orbital program distributes 561.6 ZNN + 1250 QSR every day. The contract also has a reserve of ~290k ZNN and ~674k QSR, out of which a configurable amount can also be distributed daily depending how and when we, the community, decide to do that.

With this is mind, I’m proposing a new multiplier of 1x to 10x, the Liquidity Bootstrap Multiplier, to be applied to the amount of rewards distributed daily like this:

  • 1x multiplier if the LP has 0-1000 ETH (561.6 ZNN + 1250 QSR distributed daily)
  • 2x multiplier if the LP has 1000-2000 ETH (1123.2 ZNN + 2500 QSR distributed daily)
  • …
  • 10x multiplier if the LP has 9000-10000 ETH (5616 ZNN + 25000 QSR distributed daily)

This will be reset to 1x after the campaign ends or the Orbital program runs out of reserves (~290k ZNN + ~674k QSR)

So how do we get to 100x?

The LP staking multiplier gets us 1-12X.
The liquidity bootstrap multiplier gets us 1-10x.
So we get a combined multiplier of 1-120x!

What do you want from us?

I want to get your feedback on this and to work together to find the best way to start this campaign.

During this campaign the community should coordinate marketing efforts to reach towards the defined targets.

How do we add liquidity if there’s a cap?

Right now there are ~166k wZNN in the pool. The cap is at 100k wZNN. More liquidity can be added when at least 66k wZNN are removed from the pool and that can happen in 2 ways:

  • LPs remove their liquidity
  • ETH is swapped for more than 66k wZNN on Uniswap

What’s the endgame?

Having a deep liquidity pool consolidated on the way up. Imagine if we reached 10000 ETH in the pool with 100k wZNN. 1 wZNN = 0.1 ETH? Crazy, right?

Why didn’t you answer my question before I asked it!?

Did my best, but please ask and I’ll answer.

3 Likes
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Let’s differentiate once forever orbital program and liquidity bootstrap
" Orbital program runs out of reserves (~290k ZNN + ~674k QSR)" I thought orbital program is coming from emission and cannot runs out of reserves?!?! Do I make a mistake?

Liquidity bootstrap = Just a bonus over the standard orbital program?!?!

Are you saying that over the orbital program which are coming from emission (561) we gone have forever an x1 bootstrap over the orbital program that equal 561x2 = 1122 as you say here : This will be reset to 1x after the campaign ends ???

Everything looks great but I would decrease X2 from 1000-2000ETH to 500-1500 !
Good luck!

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Orbital Program distributes 561.6 ZNN + 1250 QSR daily from the network emission. This will be the baseline (1x) and it is unlimited.

Orbital Program also has additional reserves of ~290k ZNN + ~674k QSR. Liquidity bootstrap will be distributing rewards from the reserves (starting with 2x), which are limited.

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There’s a motivating factor here for those already in the LP vs those who aren’t. I think clear direction/decision is required first about the cap and when it will be lifted so that the community knows when they can participate and what will be available as rewards at that time (orbital + bootstrap or just orbital x1 for example)

2 Likes
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additional reserves of ~290k ZNN + ~674k QSR is not just for ETH bridge IMO. We need it for other LP reward of other L1 Bridge next time

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Please just open up the pool for anyone. this way we can ORGANICALLY grow with a fair market.

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would we be able to sell? Or only the current 27 (!) LP holders be able to benefit?

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60k znn are staked now, thats around 44eth = ROI around 160% (by my calculation most of stakers locked for 12 months) at this price to gather 440 eth that would be 600k znn staked = 16 roi% . Taking in consideration impermanent loss LP will not be worth. Someone need to do better calculation but 2x multiplier is too high, maybe 300eth-500eth?

1 Like
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More liquidity, will need more buyer or seller to impact price go up and go down, this point is very different with Cex case.

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In regards to the 100k wZNN cap, wasn’t that supposed to be part of the liquidity bootstrap mechanism?

The initial cap would be ongoing for 30-90 days if I remember correctly. So would that be another way for new LP’ers to join in?

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It’s even less since not everyone staked their lp tokens.

As much as I don’t care about the cap rn, I think Liquidity bootstrap shouldn’t be enabled until the cap is removed, otherwise around 20 lp providers will get all of it.

And I agree that those who’ve been early and risked their ZNN to provide liquidity should be rewarded, but not until all the orbital funds are drained, 2 weeks is enough to reward early providers imo, especially when we talk about less than 27 addresses.

Keep in mind that most of lp providers will remove their liquidity once the multiplier resets to x1, so use orbital funds wisely.

1 Like
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Agree would rather these rewards go towards attracting new participants vs OGs…

2 Likes
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I dont really see a problem with this solution. Unless I’m interpreting it incorrectly the 2x multiplier only activates once there’s a 1000+ ETH- there’s like what 124wETH there rn?

Screenshot 2023-06-16 at 10.21.21 AM 1
Screenshot 2023-06-16 at 10.21.21 AM 1922×950 53.5 KB

We’d need 9x the current amount of liquidity before Orbital’s ‘surplus reserves’ (i.e the 2x) are even tapped into- so the only benefit early adopters really received is the 30-90 day bootstrap campaign where they hold greater ratios in the LP and ergo Orbital’s daily dish out.

That being said I would like to see more transparency and communication from Sumamu & Co. I think a lot of the early LP providers were lulled in with the promise of already receiving the bootstrap rewards. Additionally, many of us did voice our fears that the 100k cap would be filled-up very quickly by whales trying to capitalize and unfortunately this is exactly what happened. Wish we could have discussed implementing a cap on individual contributions or other alternative solutions.

1 Like
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If price goes up, the wZNN in the pool goes down, so anyone will be able to join and benefit.

You got that right!

Yes, all restrictions will be lifted after the campaign ends.

That’s a good prediction.

That’s correct. We’re here to decide if we should go with 1000, 2000, …, 9000 ETH, or something else.

I’m here to do just that.

It’s easy to spin new addresses so that wouldn’t have worked.

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When does the Bootstrap campaign end exactly? Is the community able to vote on the duration of the campaign?

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  • We were lulled with early bootstrap rewards!!! Stacked eth it’s 44 eth not 120eth(because only 60k znn is stacked) !!! in this way we need 20x price to touch those early bootstrap rewards, we are not going to 20x even with honeypot and 1 year from here
  • Honeypot it’s a failure, almost one week since we cannot sell and we sold only 1k :joy::joy::joy::joy::joy::joy:, in this way after honeypot ends we would have sell 10kznn and no significant eth added.
    Overall- bootstrap being accesed only by hitting 1000eth it’s a scam against early providers whom got promised something else and now it’s going to be unattainable.
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I’d suggest we stop referring to the LP as a honeypot.

It’s clearly not and it projects bad optics particularly if people are googling/researching it and these posts come up

Yes we can’t sell at he moment, yes it was advertised as such and was expected, no it is not permanent.

1 Like
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Well said. Also, anyone can create new wZNN markets on Uniswap with other ERC20s:

  • wZNN <> DAI
  • wZNN <> USDT
  • wZNN <> USDC
  • and so on
1 Like
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June 12 - “Liquidity bootstrap & provisioning campaign starts today.”

“However, during the bootstrap campaign, participants will receive extra rewards and additional security measures.”

Where are the extra rewards for early LP? Liquidity bootstrap campaign started one week ago and no extra rewards as promised!!!

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The extra rewards are being discussed here. We need to decide on the intervals for the multipliers.