ERP DLM – A Retrospective View of the Token sale

We believe that the DeversiFi Launch Market (DLM) is a hub on Ethereum for launching cutting-edge projects into the ecosystem, and last week saw the second ever token launch on the DLM!

Entropyfi’s token (ERP) was launched successfully on the DLM and we received a new wave of users experiencing a token launch completely gas-free, for the first time!

So why did Entropyfi decide to launch on the DLM?

One of the biggest reasons is that the DLM offers new projects the ability to appeal to a larger audience due to the zero gas-fees. During the launch, Ethereum gas prices spiked as high as 250 Gwei, so by launching their token on Layer 2, Entropyfi insulated their launch from high gas spikes.

Secondly, the DLM offers complete privacy for all participants. This is due to DeversiFi’s Layer 2 scaling solution (off-chain data) meaning activity on DeversiFi is private.

A huge flaw in traditional token launches is that they are susceptible to violent volatility as bots and advanced users front-run real participants. This historically has meant a large price spike, followed by a steep price cliff. With the DLM, the price starts higher and follows a smooth price decay curve, discouraging bots and advanced users from front running the token launch.  

The Auction

After an intense 48 hours, Entropyfi welcomed 356 new token holders with 69% of the total supply available for the DLM being sold!

Since the DLM offers the opportunity for users to sell their tokens back, users on average traded about 4.8 times during the 48 hour period. ERP saw a phenomenal total trading volume of $4,316,554 over the period, with the average user buying 38,792 ERP each!

Interestingly, it was great to see the token launch behave in a similar fashion to the DVF DLM with price stabilising at the end of the auction as the market evaluated a fair price for the token.

Quickfire Stats

  • 2% of the total ERP supply were available during the DLM
  • ~69% of the ERP was sold
  • $1,619,284 USDC was raised
  • 356 Token holders
  • Smallest holding 0.7 ERP
  • Largest holding 5,440,888 ERP

Lessons learned

One of the key lessons that we learned from the last DLM, was that we had to whitelist the DVF token with the Ledger team well in advance. This time, we learned from previous experience and are pleased to say that there were no hiccups with Ledger users attempting to withdraw their ERP tokens!

Something that was surprising was the rapid increase in gas prices shortly before the DLM. Whilst the team have worked hard to build two new bridges for users to deposit stable coins without paying gas, a few users were frustrated that they had to switch their assets into stable coins to use the bridge. We understand the frustration and are working hard to enable more assets to be deposited via the bridges, and thus alleviate the problem before the next DLM.

Finally, we ran into a small issue at the end of the sale with some users unable to use the fast withdrawal feature. The team were extremely quick to act and have already rolled out a fix for the issue to prevent it from happening again in the future.

Conclusion

The DLM mechanism has now been battle-tested with two successful sales and is establishing itself as a valuable tool for teams to launch their tokens in an inclusive way.

“The DLM allowed the Entropyfi community to buy $ERP tokens with peace of mind without worrying about front running or extreme price variation. What a great experience- the Deversifi team are extremely professional and offered continued support throughout the entire process” – Entropyfi Team

We are eager to help other projects looking to launch their own tokens, so please reach out to Ross Middleton here.

Welcome to the future of token launches, Welcome to DeversiFi

About DeversiFi

DeversiFi makes DeFi easy. Swap, Invest and Send without paying Ethereum network fees.

Website: www.deversifi.com

Twitter: https://twitter.com/deversifi

Discord: https://discord.gg/bfNDxZqPSvf

DeFi / DeversiFi / ethereum scaling / Exchange / Technology /

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