Beamswap (GLINT) launches BLO to increase liquidity for Moonbeam

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2022-01-27 09:23:21

Beamswap Liquidity Offering (BLO) was created to support liquidity for the Beamswap DEX, encourage cross-chain token exchange, and at the same time make the Beamswap DeFi hub richer.

Any decentralized exchange thrives on high liquidity, offers a wide range of assets and a network that caters to a large crypto community. Moreover, the demand for liquidity is also increasing every day.

Beamswap aims to solve the liquidity problem for assets connected to the Moonbeam Network and for projects looking for a liquidity bridge with Moonbeam.

High liquidity means better pricing of assets in the market, and for end users, better prices for tokens when moving between chains.

By bridging with other blockchains, users will receive token allocation to buy GLINT at 20% discount.

At the end of BLO, Beamswap will launch GLINT pool for owners with attractive APR.

The mechanism of action of BLO

Let’s say the community requests MOVR tokens to trade on the Moonbeam Network. Beamswap will appear and launch BLO for Moonriver.

During the BLO, Beamswap offers users 100,000 USD worth of GLINT tokens along with an attractive discount. GLINT tokens can be purchased with bridging assets in BLO – in this example, MOVR.

After BLO, the MOVR/USDC pair will be added to the exchange and supported in Beamswap Liquidity Farms.

All funds raised from BLO on Beamswap will be used to buy back and burn GLINT.

Liquidity distribution models

There are different ways to provide liquidity on Beamswap, as described below.

GLINT will be distributed in proportion to the bridging token allocation and will be pre-determined per BLO.

Let’s illustrate the models using the following variables:

  • 1 GLINT = 0.1 GLMR
  • BLO Allocation: 1,000 GLINT

Model 1 – 1:1 distribution

A full allocation of 1,000 GLINTs is distributed to all participants who invest the cumulative 100 GLMR (0.1 GLMR x 1,000 GLINT).

Assuming the user invests 10 GLMR, which is 10% of the complete allocation, then the user will receive 100 GLINT.

With a 1:1 allocation, all GLMR tokens will be converted to the respective GLINT, which means no surplus and no additional return.

Model 2 – Oversubscription

Now, let’s say BLO yields more GLMR tokens than the fixed amount of 1,000 GLINT.

Same with above example, 10 GLMR, but this time complete allocation takes 200 GLMR, so user share is 5% and they will get 50 GLINT.

Since there is more GLMR than GLINT, the remaining and unused GLMR will be refunded to the participants based on their share.

Model 3 – Sub-Registration

Finally, suppose that the BLO produces a much lower number of GLMRs than a fixed number of GLINTs.

Same example above, 10 GLMR, but cumulative allocation is only 50 GLMR.

User share takes 20% of allocation, so user will get 200 GLINT. Since there is no GLMR surplus, all GLMR tokens are used and no refunds are required.

How to join and claim tokens?

Before joining BLO:

  • Users need to hold a minimum of 10,000 GLINT.
  • In BLO, users can pledge assets to buy GLINT at a discount.
  • If receiving GLINT at 20% discount, user can claim 50% of GLINT after BLO ends and remaining 50% after 30 days.

Note about BLO:

  • Asset Bridge will open at least 24 hours before BLO.
  • The ratio between BLO and GLINT will be determined 1 hour before the BLO event.
  • Next, the BLO liquidity pool will be opened.

Increase liquidity for Moonbeam

Beamswap BLO was born to solve the liquidity problems of bridging assets on the Moonbeam Network. This means more traffic, better buying conditions and ultimately better prices for everyone.

About Beamswap

Beamswap is a decentralized exchange (DEX) with an automated market maker (AMM), providing liquidity and peer-to-peer transactions.

The platform also supports a wide range of services and features, allowing users to swap crypto assets, both fungible and non-fungible assets, earn passive income from staking, yield farming and even launch users’ own crypto projects on Moonbeam.

Learn more about Beamswap: Twitter | Telegram Group | Telegram Announcement | Discord

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Note: This is sponsored content, CHK does not directly endorse any information from the above article and does not guarantee the truthfulness of the article. Readers should conduct their own research before making decisions that affect themselves or their businesses and be prepared to take responsibility for their own choices. The above article should not be viewed as investment advice.

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