The upcoming bridge to Ethereum is set to open new markets and opportunities, creating an exciting space for users and developers. To prepare for this change and address concerns from the community and Mr. Kaine, a well-structured plan called the Liquidity Bootstrap & Provisioning campaign has been developed.
The timeline for the campaign is as follows:
- Activate upgrades
- Activate bridge
- Create pools
- Bootstrap liquidity
- Start Orbital Program
- Provision liquidity
- Increase Orbital incentives
- Remove limits
- Finish campaign
Mr.K: Is there a dedicated window of time for bootstrapping the liquidity pools? How will you avoid unfair participation at the start of the Orbital Program?
Before starting the Orbital program, we need to give some time for early participants to transfer their assets, add them to the pool, and then move the pool tokens back to NoM to stake them in the Orbital program. This ensures they have a fair chance to participate. Daily rewards are 561.6 ZNN and 1,250 QSR. During the “Liquidity Bootstrap and provisioning” campaign, up to 250k ZNN and up to 600k QSR extra rewards may be given out based on the campaign results.
Mr.K: Do you have a plan to limit the risk exposure for the liquidity pool?
We have taken many steps to ensure the safety of the bridge contracts and the Orbital contract. These steps include unit-tests, static analysis, internal audits, community audits, and manual testing. Additionally, we will limit the maximum amount of wZNN in the pool to 100k at first to lower risk exposure and provide better incentives for early participants, making it more attractive to add liquidity.
Mr.K: Are there any mechanisms to avoid a liquidity implosion? (LPs swapping the wrapped tokens for the other tokens in the pool in order to provide liquidity)? Opening new market will generate activity which could, in turn, attract front running bots. Is there a way to protect users against this or leverage it to their advantage?
The campaign’s goal is to set up and add funds to the liquidity pools. To lower the risk of liquidity implosion, we will restrict swapping wrapped assets for their counterparts in the pools during the “Liquidity Bootstrap & Provisioning” campaign. This also protects participants and users from front-running during the campaign because a bot would only be able to execute a partial swap.
Overall, the Liquidity Bootstrap & Provisioning campaign has been designed with the best interests of the community in mind. It aims to create a fair, stable, and secure environment for users as they navigate the new opportunities presented by the Ethereum bridge. By implementing these measures, we hope to foster a thriving ecosystem that benefits all parties involved.