Source: Pontem Network; Translated by: Tao Zhu, Golden Finance
This article will cover the details and methodology of the first airdrop of LSD to users of the Liquidswap protocol.
distribute:
The first LSD airdrop will be 5% of the total token supply, with 69% liquid at the time of the Token Generation Event (TGE) and the remainder vesting linearly over 4 months, releasing monthly. An additional 10% will be available over time in the form of staking rewards and future airdrops. Tokens can be claimed at claim.liquidswap.com
The airdrop will be distributed according to the following categories:
27% allocated to community NFTs, meme tokens, product testers, and ambassadors with a snapshot date of July 10, 2024;
49% is allocated to early adopters: trades and liquidity added to Liquidswap before the snapshot date of April 7, 2024;
24% is allocated to late users: trades and liquidity added to Liquidswap between the snapshot date of April 7, 2024 and the snapshot date of July 10, 2024.
Confirmed community members can receive the following rewards:
In the airdrop calculation, the transaction volume and liquidity counts of early and late users will have a reward multiplier applied to them in order to provide more rewards to key parts of the community.
The following volume and liquidity multipliers apply to these categories:
10% is allocated to NFT and meme holders
20% to X verified followers of @Pontem and LumioFDN
10% allocated to Lumio whitelisted addresses
For example, if you traded $100 and your total bonus multiplier was 10% + 20%, your trading volume for the April and July snapshots would be counted as $130.
Whales are excluded from the bounty to benefit smaller users (max cost = $500).
method:
Cost ratios, bot mitigation, wallet maximums, and allocations to mid-level users.
Cost ratio:
Individual airdrop allocations use the cost ratios associated with each category to determine a relatively fair cost ratio for each account (assuming the token price at the time of issuance).
The following costs are used for each category:
Volume: The cost of trading volume is 0.2% - an approximation of the average transaction fees for non-correlated and correlated assets. For example, if a user trades $100, the cost is $0.20
Time-weighted liquidity increase: 15% of the cost of allocating capital over a year. For example, if a user allocates $100 of liquidity for 365 days, the cost is $15
Pirate NFT: 90 APT, APT price is $6.86
Dark Ages NFT: 58 APT, APT price is $6.86
Doodoo NFT: 21 APT, APT price is $6.86
Doodoo meme coin: $0.54
ReTURD meme coin: $6.33
Product Tester Level 1: $1,000
Product Tester Level 2: $500
Product Tester Level 3: $250
Ambassador Level 1: $1,000
Ambassador Level 2: $500
Ambassador Level 3: $200
Use the following base cost scales for each category:
Bot Mitigations:
A cost ratio is used so that even if bots are included in the airdrop, they will receive a reward proportional to their cost. For example, if a bot spent $100 in its account and a human spent $100, they will receive the same amount in the airdrop. Bots are people too. The reward is proportional to the cost and value received by Liquidswap, so no one loses money using this method.
As a standard sybil detection measure, a minimum threshold of 5 trades, $250 in volume, or $100 in 1 year of added liquidity is used to remove bot addresses that spam the protocol. Any address that receives less than 1 LSD will also be removed. This leaves 57,000 wallets to be considered for the airdrop. It is generally believed that the tendency of bots is to spam low-cost addresses to get the lowest airdrop allocation.
It is still possible that there are bot accounts above these thresholds, so a larger proportion of the final cost is allocated to categories that are less likely to have bots: intermediate-level users and users who qualify for the bonus category.
We also specifically removed addresses from some company-associated or partner accounts.
Wallet caps and reallocation to intermediate tiers
After running multiple simulations at the maximum allocation, we settled on a cap of 8,400 LSD. This cap allows us to provide appropriate rewards to a large portion of the community while also recognizing the large volume and liquidity generated by a small number of people on our application. The maximum amount an individual wallet can receive is capped at 8,400 LSD tokens.
All tokens above the maximum are redistributed to all wallets below the whale's maximum cap. We assume these are the most valuable users who do not exceed the whale cap. This redistribution range was chosen based on the assumption that the most valuable users fall into this "middle class" of users.
The reallocation to “middle class” users is allocated according to a standard polynomial curve so that smaller users, where robot allocations are likely to be higher, are allocated less, and large cost users, where reallocation has a smaller impact on the cost ratio, are allocated less.
Below is a view of the distribution for each of the 57,000 wallets within the reallocation range.
recommend:
The referral bonus is 10% of the referred user’s trading volume and added liquidity. This means that if you refer a user and they trade $100, you will receive $10 in your own account.
Users can continue to share their referral links to receive future rewards and airdrop calculations.
analyze:
Funds and bonuses allocated to the community category impose higher costs on these users. The following chart maps the wallet index against allocation. The area under the curve is the sum of allocations to users. Most airdrop allocations are skewed toward large whale accounts and bots.
The shift to support community and “mid-tier” users widened the curve, making the slope of cumulative allocations in the Wallet Index less steep. This means that many smaller users received additional allocations that would otherwise go to whales, non-community users, or bots.
The figure below zooms in on a portion of the entire distribution. It is clear from this figure that the colored community member groups bear a higher proportion of the costs than the gray non-community member groups.
Below are the average and median cost (ROI) ratios broken down by categories (this list is not exhaustive).
