Airdrop Bonus Explained
- Bonus will be in the form of BIT-ETH SLP based on final price
- SLP will be staked for 90 days, then airdropped after
- Note: during the 90 days the BIT-ETH SLP tokens may be influenced by farming rewards, swap fees, and impermanent loss
Dutch Auction Explained
A simple explanation is: Dutch auctions starts at a higher Starting Price and falls to a lower Reserve Price over time. Participants can commit assets at any point in time to secure allocation. The auction concludes when all available tokens are allocated. All participants receive the same Final Price or Clearance Price.
For example, if Participant A commits $20,000 at $2.00 and after a few days the Final Price is $1.60, then Participant A will receive $20,000 / $1.60 = 12,500 tokens at $1.60 (the same price as all other participants).
- when a commitment is made the amount is locked, and the token quantity that will be claimable can increase overtime as the auction price falls.
- participants cannot commit a higher price than the current price. The price is determined by the current time, with the price falling constantly over time.
Reasons for committing earlier:
- to secure allocation
- to receive a larger airdrop bonus (see above)
- the final price for all participants is the same (for earlier and later commitments)