ERP DLM – A Retrospective View of the Token sale

Last week saw the second-ever token launch on the DeversiFi Launch Market (DLM), an Ethereum hub which, we believe, will provide a springboard for multiple cutting-edge projects to enter the ecosystem.

Entropyfi’s token (ERP) was launched successfully on the DLM, following on from the launch of our own DVF token in the summer. And the launch was a huge success: we received a whole wave of new 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 our DLM offers new projects the ability to appeal to a larger audience, due to the freedom from gas fees. 

During the launch, Ethereum gas prices spiked as high as 250 Gwei. By launching their token on Layer 2, Entropyfi insulated their launch from these spikes.

Another key reason is that our DLM offers complete privacy for all participants. DeversiFi’s Layer 2 scaling solution (off-chain data) means activity on DeversiFi is shielded.

Finally, our DLM is reliable. A major 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 DeversiFi 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

During an intense 48 hours Entropyfi welcomed 356 new token-holders, with 69% of the DLM’s total available supply being sold. ERP saw a phenomenal total trading volume of $4,316,554 over the period, with the average user buying 38,792 ERP each!

The DLM also offers the opportunity for users to sell their tokens back. In fact, users traded about 4.8 times on average during the 48-hour period. 

Additionally, it was great to see the token launch behave in a similar fashion to the DVF DLM in July. The price stabilised at the end of the auction, as the market evaluated a fair valuation.

Quickfire Stats

  • 2% of the total ERP supply was 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 the deposit of more assets 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 ensure it doesn’t happen 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,” the Entropyfi team said. They added that it was “a great experience- the Deversifi team are extremely professional and offered continued support throughout the entire process.”

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: https://rhino.fi/

Twitter: https://twitter.com/deversifi

Discord: https://discord.gg/bfNDxZqPSvf

Share this post

Latest Posts

FTX Collapse: The advantages of DEXs over CEXs

The collapse of the FTX crypto exchange has ignited the debate about centralised and decentralised trading platforms. However we believe the DEX vs CEX debate was settled long ago: your funds are safer on a DEX than they could ever be on a centralised exchange.

Read Article
Sign up now!Sign up to our newsletter now to hear all about rhino.fi’s upcoming mystery airdrop, new chain launches and yield opportunities and be in with a chance of winning $5000.
Sign up now!Sign up to our newsletter now to hear all about rhino.fi’s upcoming mystery airdrop, new chain launches and yield opportunities and be in with a chance of winning $5000.
Sign up now!Sign up to our newsletter now to hear all about rhino.fi’s upcoming mystery airdrop, new chain launches and yield opportunities and be in with a chance of winning $5000.
Sign up now!Sign up to our newsletter now to hear all about rhino.fi’s upcoming mystery airdrop, new chain launches and yield opportunities and be in with a chance of winning $5000.
Sign up now!Sign up to our newsletter now to hear all about rhino.fi’s upcoming mystery airdrop, new chain launches and yield opportunities and be in with a chance of winning $5000.
Sign up now!Sign up to our newsletter now to hear all about rhino.fi’s upcoming mystery airdrop, new chain launches and yield opportunities and be in with a chance of winning $5000.

Earn 19% APY on your stablecoins