DLM

Get your hands on DVF…

Earlier this year we launched a brand new feature on DeversiFI – a DeversiFi Launch Market (DLM). A DLM is a means of fairly launching your tokens on Layer 2 with no gas fees, meaning more of your community can take part.

Our first ever DLM was used to launch our native governance token DVF, with a community offering of 2,000,000 DVF tokens (taken from the DVF treasury). Read below to find out more about what a DLM is, the benefits and details on our public distribution event.

What is a DeversiFi Launch Market (DLM)?

We believe in fairness and rewarding our loyal communities and a DLM does just that – it’s a fair price discovery mechanism for launching tokens on DeversiFi.

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:

How does a DeversiFi Launch Market work?

Sounds great right? But how does it actually work? A DLM combines elements of a dutch auction and a Liquidity Bootstraping Pool.

Here’s a topline of the key information you need to know:

A DLM lasts for a period of time (eg two days) with the initial market price starting high and moving lower throughout the time period. The DLM will consist of two assets, the launch asset and the base currency (eg USDC or USDT).
DLM participants can purchase tokens at the market price at the time using the DeversiFi Swap interface. The initial high price discourages bots and fastest-finger-first buying as there may be an opportunity to buy for less as the price moves lower throughout the auction period.
Purchasing tokens in the DLM will result in slippage, discouraging large one-off purchases and bumping the resulting market price higher.
As more tokens are purchased in the DLM, the eventual ending floor price of the auction will increase.
DLM participants can also resell their previously purchased tokens back into the DLM, meaning there is continuous liquidity and better price discovery.
At the end of the DLM, the DLM is closed, the liquidity is removed and in some instances, the DLM is replaced by a standard DeversiFi 50/50 weighted AMM (Automated Market Maker Pool) if this is what the token project team requires.

What is the DVF DLM?

2,000,000 DVF tokens were made available via a DLM on Thursday 8th July 2021.

The purpose of the DLM was to allow early supporters of DeversiFi to purchase DVF tokens ahead of the start of several DeversiFi product launches & liquidity mining, AMM liquidity provision and initial price discovery – aka the official DVF launch.

Ensuring that DVF has a good level of liquidity after launch was essential to enable protocol participation. Therefore all funds raised by the DLM were used to seed a DeversiFi market and a Sushiswap pool and a Uniswap pool. The SushiSwap and Uniswap LP tokens will be owned by the DVF treasury, and therefore DVF holders as community owned long term liquidity.

When: Thursday 8th July 2021 15:00 UTC +1
Purpose: Generate community-owned liquidity for initial on-chain AMM pool
Where: https://app.deversifi.com/launch-market
Pair: DVF/USDt
DVF Tokens available: 2,000,000
Duration: 48 hours
Start Price: $2.00
Floor Price: $0.4

Now the DVF DLM has finished, the USDt raised has been matched with DVF tokens from the DVF treasury and used to seed a DeversiFi market and a Sushiswap pool and a Uniswap pool. This will ensure continuous liquidity in the lead up to the DeversiFi AMM launch and start of DeversiFi liquidity mining.

Here’s an example of our first sale, the DVF DLM and how the price changed throughout: