🌄Genesis Pools
Launchpads and Liquidity Bootstrapping Pools (LBPs) have been go-to methods for launching new crypto projects, yet they often fall short in delivering long-term price stability and alignment. The Blackhole Genesis Pool redefines this process with a more equitable and sustainable model, designed to empower projects and their communities.
The Genesis Pool is a purpose-built mechanism within the Blackhole protocol, designed to jump-start liquidity for nascent projects. It facilitates the creation of an initial liquidity pool, crucial for enabling trading and price discovery of a new token. Genesis Pools enable projects to seed initial liquidity in a much more capital efficient way as projects and community members collaborate to create the initial liquidity. Participants contribute paired assets (p-tokens) in exchange for LP (Liquidity Provider) tokens, which represent their share of the pool and grant them a portion of the fees and emission rewards.
How it Works
Campaign Launch
Projects applying for a Genesis Pool, will undergo a review process. Once approved, it becomes visible to potential contributors.
A project initiates a Genesis Pool campaign, allocating a portion of its token supply and setting key parameters like the implied Fully Diluted Valuation (FDV), incentives for the first epoch, and the end date of the campaign (coinciding with an upcoming epoch).
Fixed Price Pairing
The campaign operates with a fixed token price throughout the "Genesis Period," providing certainty to contributors.
Contributions
Participants, believing the fixed price offers a fair valuation, commit a desired amount of p-tokens. These are held in escrow until the campaign concludes.
Genesis Pool Threshold
The Genesis Pool must meet certain criteria (e.g., minimum p-token contributions) for the liquidity pool to be created. If unsuccessful, committed paired assets can be claimed back by participants.
Liquidity Pool Formation
Upon successful completion, the collected p-tokens and the project's allocated tokens are combined to form the liquidity pool. This marks the transition from the Genesis Period to a standard Blackhole liquidity pool.
LP Token Distribution and Automatic Staking
LP tokens, representing ownership shares in the pool, are distributed to contributors and the project. These are automatically staked, allowing participants to immediately earn $BLACK emission rewards from the first epoch. (Note: Participants may need to first claim their LP tokens on the Dashboard before rewards can be claimed.)
Ongoing Liquidity
LP tokens generated during the Genesis Period function identically to those created afterward. Holders can un-stake and withdraw their underlying assets at any time.
Important: LP tokens allocated to the project's foundation will have a lock-up period (e.g., 90 days or longer) to ensure long-term commitment.
Voting Gauge
A voting gauge is established for the project, enabling them to allocate incentives for the first epoch, encouraging participation and trading activity.
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