Minterest’s Public Distribution: Everything you need to know!
Minterest is a ground-breaking lending protocol built by industry leaders to challenge existing DeFi incumbents and service billions in liquidity and is so doing providing its users the highest long term yield in DeFi.
As you all know, we launched the #nextleveldefi community allocation event last month that was later postponed due to a delay in the Minterest LBP Token Event. All the participants who deposited their funds in the Community Allocation Event were fully refunded, including the gas fees, on 10th of December.
In this short guide, we will explore the Minterest’s public distribution that will occur in two distinct phases:
- Phase 1: Community Allocation Event
- Phase 2: LBP Token Event (Liquidity Bootstrapping Pool)
Both phases are intended to be completed by Q1 2022. In parallel, the protocol will be assessed by leading security firms, getting ready for the private launch and TGE later this year.
Phase 1: Minterest Community Allocation Event
The community allocation event is intended to ensure a maximum allocation of 500 USD to any and all members of Minterest’s community.
Who is eligible to participate in the Minterest Public Distribution?
The Minterest Public Distribution is open to anyone except for citizens, residents, and incorporated entities of the United States and the following sanctioned countries: Cuba, Iran, Crimea Region of Ukraine, North Korea, Syria.
How do I sign up for the Minterest Community Allocation event?
For those who are interested in participating in the community allocation event we created a short guide here.
What is the price of the Minterest token (MNT)?
The price is determined based on phase 2: the Next Level liquidity bootstrapping pool (LBP). All participants in Minterest’s community allocation event will receive MNT at the lowest average price set in the Next Level LBP. Please see the details in Phase 2 below.
What is an LBP and how does this all work?
Please see the details in Phase 2 below.
Why is there a guaranteed allocation?
The public offering was designed to uphold the community-centric principles upon which Minterest was designed throughout its fund raising process. The community allocation event is designed to:
- Enable early supporters to secure an allocation prior to the Next Level LBP.
- Provide early supporters with confidence regarding their pricing.
- Ensure gas prices are minimized for those who may be impacted during the Next Level LBP.
Why do you receive the lowest average price in the Next Level LBP?
Minterest’s goal is to be fair and equitable while ensuring a wide distribution of the native MNT token. Irrespective of any outcomes in the Next Level LBP, the participants in the Minterest community allocation event are assured of the lowest average price that occurs during this process. In the following section we describe the Next Level LBP in detail and how LBP architecture is used to derive a fair market structure through price discovery.
What are the Community Allocation Event terms?
- The allocation starts from min. 100 USD to max. 500 USD. The maximum allocation can be increased later, based on the response from the community. Anything below the minimum and above the maximum amount will be forwarded to the treasury.
- The price is the average lowest price in the subsequent LBP (read more below).
- The funds can be sent through the Ethereum or Binance Smart Chain network (to reduce gas fees). We will support Metamask integration, please read here how you can add the BSC network on Metamask.
- There will be no vesting for the tokens in the public offering. All tokens will be fully unlocked upon the launch of the Minterest Protocol (scheduled for March 2022). They will be fully liquid to trade on exchanges, to stake on Minterest, and to provide liquidity on DEXs.
What are the funds used for?
The funds raised will be used for bootstrapping the Treasury of the Minterest DAO.
Were there other investment rounds before the community allocation event?
Yes, Minterest Labs raised $6.5 million from key investment partners like KR1, CMS, DFG, NGC and others. All related information is disclosed here: Minterest’s village of supporters. There is another pool for industry leading marketing partners and we will provide an update here soon.
Phase 2: Next Level LBP
In LBP events, supporters are able to participate in a variant to the ‘dutch auction’ process. Dutch auctions are a mechanism where instead of participants getting an offering at a fixed value, the process allows anyone to bid their own chosen quantity and decide on the value they are willing to attribute. Unlike traditional auctions where bidders bid the value up, the value of the asset will fall over time until participants acquire tokens at the volumes they are seeking.
To read more about how an LBP works, please read this great guide by Balancer.
The Minterest LBP will be conducted on Balancer where people can directly buy MNT tokens using USDC (ERC-20); more details for the LBP specifics will be disclosed later. Participants will have access to a Minterest interface for a simple and transparent experience, hosting an overview and a leaderboard detailing live the USDC spent by various participants in the LBP. The leaderboard provides valuable transparent insight for those purchasers seeking, as part of their purchase of MNT tokens, to secure a specific level of Minterest NFTs; read more about Minterest NFTs here.
How do community allocation event participants get the guaranteed lowest price in LBP?
LBPs usually have a constant downward price pressure from a high initial price. According to a series of simulations run by Perpetual Protocol, the LBP price curve can have different shapes and forms depending on various parameters.
However, the most common pattern is a V-shaped price curve where the initial price is high, followed by a sudden dip (the bottom point in the price curve), and then an upward continuation. To illustrate this better, let’s examine the LBP curves of some recent LBPs: Gro and Merit Circle.
$GRO LBP Price Curve
Gro is an example of a rather common price curve. The initial price for the LBP started high at $10.57, followed by a sudden fall towards $4.48, then some consolidation, and finally an upward continuation. The minimum value during the LBP was $4.48 and the end price was $9.28.
$MC Price Curve
There also exist some edge cases outside of what was described above. Also in those we have our community covered. An example to illustrate this, is the record-breaking Merit Circle LBP. Right after the LBP auction, the price of $MC touched $2.016, followed by a sudden fall towards $1.071. The closing price in the LBP was $3.20; a phenomenal ~3x from the dip during the LBP.
How is the “lowest average price” for community allocation event participants calculated?
Minterest community allocation event participants will get the lowest average price in the LBP. The price is a function of the average of the lowest LBP prices paid by total funds accumulated in the community allocation event.
Let’s assume that all participants accumulate 500,000 USD in the community allocation event. The value in the community allocation event is determined retroactively as the average value of the lowest 500,000 USD acquired through the LBP.
In more detail: Let’s assume that in the LBP there are 5,000,000 USD collected at the end of the event, where all LBP participants paid a different price. Sort all 5,000,000 USD provided by the token price paid from high to low, and take the average price of 500,000 USD from the bottom and average it. This is the average lowest price in the community allocation event.
How do I participate in the Next Level LBP token event?
For those who are interested to participate in the Next Level LBP event, we created a short guide here. Once you sign up, there will be a whitelisting process where you will receive all the instructions via email.
Next Level community allocation event:
The NFT lottery
The Minterest NFTs carry a significant boost in the protocol’s emissions rewards and allow early access to the private launch of the Minterest protocol (expected Q1 2022). Minterest NFTs offer up to 50% boost in a user’s MNT Emissions Rewards.
A total of 3000 NFTs will be issued across 12 different levels, with each represented by 1 of 100 unique images. Each level has more types of NFTs, with higher boosts in Emissions Rewards and periods of validity being applied to rarer NFTs.
Please read about Minterest’s NFT functionality here: NFT Lottery.
The NFT bonus rewards will be distributed among the participants that are at the top of the leaderboard based on the total amount of net USDC token acquisition amounts.
To enable community members with smaller wallets a chance at an NFT, the NFT lottery contest was launched for early signups to the #nextleveldefi event. To date, we have secured over 25K signups.
Want a chance to win an NFT? Sign up here: https://minterest.com/nextlevel
What is Minterest?
Minterest is a decentralised lending protocol. It comes with a unique economic model where the protocol itself captures 100% of the value it creates from interest income, flash loan fees, and auto-liquidation fees which it passes on to its users in return for their active participation in governance.