BLO, Beamswap Liquidity Offering

With BLO, Beamswap tackles the liquidity issue for assets bridged to the Moonbeam Network and for projects seeking to bridge their liquidity to Moonbeam.

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

Higher liquidity leads to better pricing of assets on the market, boosted traffic, optimized buying conditions, and better prices of bridged tokens for end-users.

Benefits for users

As BLO bridges assets from other blockchain networks, you can allocate tokens to buying $GLINT at a lower price.

Once a BLO ends, a $GLINT pool will be launched on Beamswap, bringing high APR to its holders.

How does BLO work?

When the community requests a new asset to be traded on the Moonbeam Network, Beamswap runs a BLO to onboard the project behind it.

During the BLO, Beamswap offers a pool of $GLINT tokens at a lower price. You can buy discounted $GLINT using the asset bridged in the BLO.

After the BLO, a new pair containing the bridged asset is added to the Beamswap DEX and listed on Beamswap Farms.

The total amount raised in BLO is used to buy and burn $GLINT tokens.

Liquidity distribution models

The allocation of bridged tokens determines the distribution of $GLINT tokens.

To illustrate the allocation models with examples, the following variables are used:

  • 1 $GLINT = 0.1 $GLMR

  • BLO allocation: 1,000 $GLINT

Model #1 - One-to-One Allocation

BLO contributors cumulatively invest 100 $GLMR, which represents the complete BLO allocation of 1,000 $GLINT (0.1 $GLMR x 1,000 $GLINT).

If you invest 10 $GLMR, which is 10% of the complete allocation, you get 100 $GLINT.

With the 1:1 ratio of $GLMR and $GLINT allocations, all $GLMR tokens are converted into the proportionately equal value of $GLINT, meaning there is no surplus, and no refunds need to be issued to contributors.

Model #2 - Oversubscription

BLO bridges in more $GLMR tokens compared to the fixed amount of 1,000 $GLINT.

You invest the same as before, 10 $GLMR, but the complete allocation accounts for 200 $GLMR.

Your share represents 5% of the allocation and gets you 50 $GLINT.

Since there are more $GLMR than $GLINT in the BLO pool, the remaining and unused $GLMR are refunded to contributors, including you, based on their contributing share.

Model #3 - Undersubscription

BLO bridges in less $GLMR tokens compared to the fixed amount of 1,000 $GLINT.

You invest the same amount as before, 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.

Detailed information on participation, the minimum amount needed, and claiming $GLINT will be communicated before every BLO.

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