It’s happening!
The Initial DEX Offering will be on the 28th of April.
This is a couple of weeks later than we had originally anticipated but we agreed with our marketing agency that this would enable them to spread the word further.
Where?
The location of the IDO will be on Gnosis auction: https://gnosis-auction.eth.limo/#/start and will kick off on the 28th of April and end on the 4th of May.
Why Gnosis Auction and not Copper?
After speaking to different members of the community, we felt like a Gnosis auction was actually a fairer way to discover the right price for the $ALLUO token compared to a Copper auction.
To read more about Gnosis auction, please feel free to have a look through this medium article by the Gnosis team.
They also provide a neat little table that compares the different auction mechanisms.
You can quickly see that a Gnosis auction is actually better than the Balancer Liquidity Bootstrap Pool (what Copper uses) in many respects.
Gnosis Auction uses batch auctions, which enables the matching of limit orders of buyers (ie maximum price the buyer is willing to pay) and sellers with the same clearing price for all participants.
That means that once the auction is over, all the participants whose bids can be fulfilled will pay the same price per token.
This is a great way to ensure fairness among all the participants.
How?
Once we have kicked off the auction, you will be able to decide
- The amount of ETH you want to spend buying $ALLUO tokens
- The maximum price (in ETH) you are willing to pay per $ALLUO token
For instance, you could decide to buy
- 0.4 ETH worth of $ALLUO tokens
- At a maximum price of 0.0004 ETH per token
Imagine that once the auction is completed, the fair value of the token is determined at 0.0003 ETH per token, then you would be able to redeem:
- 1,333 $ALLUO tokens which is equal to 0.4 ETH (the total you were willing to buy) divided by 0.0003 ETH (the final price of the token)
This means that although you were willing to pay up to 0.0004 ETH per token, you only had to pay 0.0003 ETH because that is where the auction price settled on.
In that scenario, all the participants whose bids were higher or equal to 0.0003 ETH will be able to redeem their $ALLUO tokens.
What happens next?
Once the auction has settled, all the participants will be able to either redeem their $ALLUO tokens (if their bid was equal or higher to the final price) or redeem the ETH they used for the bid.
We will also then have an agreed price for the token which will enable us to create a new $ETH-$ALLUO pool on Balancer to ensure liquidity for the token.
All the funds raised during this IDO process will be used to seed this new $ETH-$ALLUO pool.
As mentioned in a previous article (see our Tokenomics here, “Protocol liquidity” section), locking $ALLUO tokens via https://app.alluo.finance will deposit tokens in this $ETH-$ALLUO balancer pool and will give holders the ability to vote on the liquidity direction and other DAO decision to administer the protocol, just like they have been doing in the past few weeks (see https://vote.alluo.com for some historical voting)
