The DVF DLM is now LIVE - you can access the event here now, or read on to find our more about DVF and our brand new DLM feature...
We’re taking DeversiFi to the next level by launching DVF, the token of DeversiFi. DVF is a governance token, meaning that will give holders the power to shape the future of the DeversiFi protocol, one vote at a time. You'll be governing key decisions and earning potential shares of the protocol fees. Sounds pretty good right?
We’re launching DVF because our community matters and we want to empower YOU to drive the future of our protocol and have real ownership of DVF. And we’re doing it as fairly as we know how.
DeversiFi will distribute 2,000,000 DVF governance tokens (2% of the overall supply) via a DeversiFi launch market (DLM). The sale will start on 8th July, 2021 around 3pm (UTC +1) and ending on 10th July, 2021 around 3pm (UTC +1). You’ll be able to access the sale here once it's live.
Between 8th July and 10th of July DeversiFi DLM will be the only place you can secure DVF tokens. Once the DLM has finished, DeversiFi labs will be seeding a community owned liquidity pool on Uniswap with the proceeds from the DLM. Please be wary of potential scams and only access the token through official distribution events.
We’ve pulled together this guide to help you understand more about what a DeversiFi launch market is, how price discovery will work, and how the DVF DLM will play out on 8th July along with some model scenarios. We've also summarised ways for you to participate in the event.
So what are you waiting for? Dive in…
What is a DLM (DeversiFi Launch Market)?
We’re launching DVF in the fairest way we know how, through our DLM.
A (DLM) is a new mechanism for token generation events which enables projects to launch their token on Layer 2. A DLM combines elements of a reverse auction with continuous liquidity in order to establish the market price of a token by involving all participants. As the price of a DLM starts high and slowly decays the problem of fastest-finger-first is removed. As a DLM is hosted on DeversiFi layer 2, participants do not pay gas and can participate in privacy, whilst still maintaining full control of their funds, meaning token project can reach a much wider audience who might be put off participating due to high Ethereum gas costs on Layer 1
A complete guide to DLMs can be found here.
What are the benefits of a DLM?
When launching a new token that is not already trading/liquid, it is impossible to know the value that the market will assign to that token. This can lead to over or under-pricing at launch, with adverse effects. But DLMs solve these problems:
- They help determine the market price of a new token that is not already trading or circulating.
- They allow anyone to participate in the price discovery without being prevented from doing so by high gas fees.
- They always ensure privacy of participants.
- In order to disincentivize those pesky bots, any front-running and speculation, the token price will start high.
What is the DVF DLM?
DVF is the Governance token of the DeversiFi protocol. DVF holders govern the protocol by changing aspects of how the DeversiFi exchange operates, including fees charged. DVF holders earn fees from DeversiFi. Click here for more details on the DVF token.
On Thursday 8th July 3pm (UTC + 1), 2,000,000 DVF tokens will be made available in our inaugural DLM. All USDt raised from the sale will be entirely community governed and will be used to seed a Uniswap DVF pool directly after the DVF DLM closes. This will ensure there is a long term, permanent source of liquidity for DVF.
Below are the key parameters:
- Start time: Thursday 8th July 3pm UTC +1
- End time: Saturday 10th July 3pm UTC +1
- Duration: 48 hours
- Start price: $2
- Floor price $0.4
- Base currency: DVF
- Quote currency: USDt
- Starting DVF 'pool' tokens: 2,000,000
- Starting USDT 'pool' tokens: 0
- Time decay function: Log
- The DLM will be closed at the end of the 48 hours, not before
- DVF Liquidity (immediate)
For more information on market cap, token issuance and circulating supply read our DLM Walk-through guide here
How will price discovery work?
It’s important to understand with a DLM that due to the design there is a natural downward selling pressure on the price throughout the duration of the event, which is offset by the flow of USDt.
Below are some illustrations of how DVF price might shift throughout the community offering based on the sales cycle.
By starting at a high initial prices which gradually descends over time, participants are incentivised to wait until the price falls to a level you are happy with during the distribution event. Due to continuous liquidity you can re-sell your DVF back into the DLM at any point during the 48 hours.
Scenario 1: no Tokens sold :
Scenario 2: 75% Token bought evenly through the sale, but weighted towards the back of the sale:
Scenario 3: 90% Token bought unevenly, through the sale, with both buying & re-selling:
How can I participate in the DVF DLM?
So you think you want to take part in the DVF DLM? It’ll be simple to take part, but there are a few things you’ll need to do to make sure you’re ready:
- Connect your wallet to DeversiFi
- Deposit USDt into you DeversiFi account (we’re on layer 2 so you might need to pay gas to do this)
- Purchase DVF when the DLM opens with USDt
You'll be able to access the sale here once its live.
When will I receive my tokens?
You will receive your DVF tokens in your DeversiFi exchange wallet the moment that you have purchased them in the DLM, and you can do with them what you please.
What if I miss out on the DLM?
The best way to earn DVF is going to be to participate in liquidity mining once we launch later this month! You can provide liquidity with a click of a button on a number of tokens and earn DVF for doing so!
There are also a number of ways to purchase DVF tokens after the DLM:
- Purchase from the Uniswap pool that will been seeded with the proceeds of the DVF DLM
- Purchase from the DeversiFi pool that will launch with DeversiFi liquidity mining shortly after the DLM ends
- If you are an active user of DeversiFi then you may be eligible for a DVF airdrop
The DeversiFi team will be available on Discord to answer any questions in the lead up to and during the DVF DLM, to ensure our community understands the process and potential risks.
We’ll also be hosting a community call on Monday 5th July at 5.30 (UTC +1). The DeversiFi founders will give you an update on the progress until launch and answer any questions you have. You’ll be able to join the call here on Monday.
Key information can also be found here:
DISCLAIMER: This post and any information contained herein that references the DLM is for illustrative purposes only. Participating in cryptocurrency is high risk and it is essential that you do your own research before risking any of your own funds. The DVF does not constitute an investment offering and DeversiFi is not providing any financial advice. By using the DeversiFi trading platform, including the DLM, you are bound by the DeversiFi Platform Terms of service which you can find here: https://www.deversifi.com/terms
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