BEAMSWAP announces Beamswap Liquidity Offering (BLO)

Boosted liquidity of bridged assets on Moonbeam means better prices and higher traffic.

Supporting the liquidity of the Beamswap DEX and incentivizing cross-chain exchange of tokens, their DeFi hub has just become richer for a new feature "Beamswap Liquidity Offering (BLO)."

What is BLO and why does it matter?
Any decentralized exchange relies on strong liquidity, and with so many assets and networks catering to a wide community of crypto folks, the need for liquidity is growing, as well.

With BLO, Beamswap aims to tackle the issue of liquidity for assets that are bridged to the Moonbeam Network and for projects that seek to bridge their liquidity to Moonbeam.

Beamswap BLO comes from the Initial Liquidity Offering (ILO) and will enable liquidity and capital from other networks to easily flow and accumulate on the Moonbeam Network.

More liquidity means better pricing of assets on the market, and for end-users, better prices of bridged tokens.

What’s in it for you?
By bridging from other blockchain networks, you’ll be able to allocate tokens to buying $GLINT at a 20% discount.

Upon the end of BLO, they’ll also launch a $GLINT pool for holders, bringing massive APR.

How does it work?
Let’s say the community requests the $MOVR token to be traded on the Moonbeam Network. Beamswap comes in and runs a BLO for Moonriver.

In the BLO, Beamswap offers users $100,000 worth of $GLINT tokens at a discount rate. $GLINT tokens can be purchased with the asset bridged in the BLO — in our example, $MOVR.

After the BLO, the $MOVR/$USDC pair is added to the exchange and supported in Beamswap Liquidity farms.

Note: The complete amount raised in BLO on Beamswap will be used to buy and burn $GLINT tokens.

Liquidity distribution models
There are various ways of supplying liquidity on Beamswap, as described below.

The $GLINT tokens will be distributed relative to the allocation of bridged tokens, which will be determined before each upcoming BLO.

Let’s illustrate the models using the following variables:
  • 1 $GLINT = 0.1 $GLMR
  • BLO allocation: 1,000 $GLINT
πŸ‘‰Model #1 — 1:1 allocation
The complete allocation of 1,000 $GLINT is distributed among all participants that cumulatively invest 100 $GLMR (0.1 $GLMR x 1,000 $GLINT).

Let’s say you invest 10 $GLMR, which is 10% of the complete allocation, so you get 100 $GLINT.

With the proportional distribution at a 1:1 ratio of $GLMR and $GLINT allocations, all $GLMR tokens are converted into the proportionately equal amount of $GLINT, meaning there is no surplus and no refund needs to be issued.

πŸ‘‰ Model #2 — Oversubscription
Now, let’s assume a BLO brings in more $GLMR tokens compared to the fixed amount of 1,000 $GLINT.

You invest the same as before, 10 $GLMR, but this time, the complete allocation accounts for 200 $GLMR, so your share is 5% and gets you 50 $GLINT.

Since there are more $GLMR than $GLINT, the remaining and unused $GLMR are refunded to participants, including you, based on their share.

πŸ‘‰ Model #3 — Undersubscription
Lastly, let’s say that the influx of bridged $GLMR tokens is much lower compared to the fixed $GLINT amount.

Again, you invest the same amount, 10 $GLMR, but the cumulative allocation amount is only 50 $GLMR.

Your share represents 20% of the allocation, so you get 200 $GLINT. As there was no surplus of $GLMR, all $GLMR tokens are used, and there is no need for a refund.

How to join and claim tokens?
Before participating in a BLO, there are a few things you should know:
  • You need to hold a minimum of 10,000 $GLINT tokens.
  • In the BLO, you can commit the BLO asset to buy $GLINT at a discount.
  • If you got $GLINT tokens at a 20% discount, you can claim 50% of $GLINTs once the BLO ends, and the other 50% after 30 days.
BLO details
  • Bridge for the BLO asset will open at least 24 hours before the BLO.
  • The ratio between the BLO asset and $GLINT will be determined 1 hour prior to the BLO.
  • BLO liquidity pools open
Boosting liquidity on Moonbeam
Beamswap BLO aims to solve liquidity issues of bridged assets on the Moonbeam Network. This means more traffic, better buying conditions, and ultimately better price for everyone.

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