Presale mechanism
Presentation of our very own presale mechanism
Last updated
Presentation of our very own presale mechanism
Last updated
Disclaimer: If you're planning on being part of our ICO and don't mind waiting for a weeks vesting period, you don't necessarily need to read about our presale mechanism.
You could just go through the Presale Mechanism Litepaper right here.
While allowing early expansion and creating a strong bond between project founders and their community, token private sales are quite questionable for long term growth and even more importantly: public inaugurations.
Let us introduce you to our very own presale mechanism that allows presale investors to remain liquid while having their tokens vested, making them unable to create selling pressure at launch.
To go straight to the point, CarboSwap exchange will enable ICO participants to borrow hedge tokens (unusable tokens/dead tokens) to hedge themselves against potential downside volatility. These tokens can be claimed right after public launch and will allow users to take profit on their initial investment.
However we have established a few rules that will prevent any abuse of this mechanism.
On top of the tokens claimed after the ICO, participants will be able to borrow as much hedge tokens as CARBO tokens they actually own. These tokens are vested, can't be staked, transfered, locked or pool'd ; their only purpose is to allow users to hedge themselves. These tokens can be claimed through our DAPP after public launch and will be redeemable once the one week vesting period is over.
If CARBO token price declines from the point when tokens are claimed, the user receives a premium paid out in CARBO whenever he redeems the hedge tokens. This premium is based on the time and price he took profit by claiming these hedge tokens.
If CARBO token price rises from the point when hedge tokens were claimed, the user will have to redeem his hedge tokens before being able to trade the tokens purchased even if the vesting period is over. He also has to pay a fee when swapping ICO tokens which will take back from him the gains he could've made by simply holding the token (between the moment he hedged himself and now: price is now higher). The fees get entierly burned and the user gets his investment back with a nice gain that depends on where he took profit.
The premium is paid out based on APT token fluctuations (and not USD), meaning that even once one is hedged, he still is exposed to APT's volatility.
Once a user has claimed his hedge tokens (or in other words taken profit), he’ll have to wait until the vesting period is over to redeem his tokens.
Even though tokens in profit bought during ICO can't be swapped when hedge tokens haven't been redeemed yet, one can still stake them in our Turtle Pools. They can only be freely traded once hedge tokens have been redeemed.
Once a user redeems his hedge tokens, he naturally becomes exposed to CARBO's volatility again. He can stake his tokens to reduce this volatility instead of selling them (reducing downside implied volatility).
A user can decide whether he prefers to receive his premium paid out in native tokens or APT, if he prefers APT, tokens will get swapped from CARBO to APT coins and sent to his wallet.
The redeem page of our DAPP will be terminated a month after vesting period (a month and a week after public launch) to ensure a steady growth of CarboSwap token and to prevent large investors of being hedged against volatility for too long.
All of these measures will allow CarboSwap to provide a public launch with significantly reduced selling pressure while keeping its early investors liquid and flexible.
Very much like the hedge tokens, Team Wallet issues some CARBO and pays out the premium. If every single ICO participant claims his tokens, the Team Wallet is only left with 1'564.288 CARBO tokens (1.1% of the initial supply). Therefore we give a discount to everyone that redeems these tokens.
Once a user redeems his hedge tokens to the Team Wallet, we thank him for doing so by paying him a premium (or not if he isn't eligible for it).
As of every other CARBO token in the Team Wallet, they will slowly start unlocking themselves on November the 1st 2023.
