Brace yourselves Spartans — the days of uttermost significance are coming!
Something that has been built in front of your eyes for the last few months will finally see the daylight and enter the public, fully mature phase, being the first gamified exchange on Arbitrum.
Before that happens, however, there is one more event to experience, a grand finale of key importance for the entire ecosystem. The event that precedes the launch and will determine its success, dictate the direction in which the SpartaDEX ecosystem, the $SPARTA token and their functionalities will be heading.
We are talking about the SpartaDEX lockdrop, which is scheduled to start on July 24, and which aims to provide SpartaDEX with an initial liquidity deep enough to ensure smooth experience of using the protocol, as well as give you the best opportunity to lay hands on $SPARTA tokens!
In this article you will learn:
- What is lockdrop and why did we choose this launch strategy?
- All about lockdrop, its phases and differences between them
- How can you become the holder of $SPARTA?
Lockdrop? Never heard of it
Lockdrop is a decentralized exchange launch strategy, aimed at building deep liquidity from the very beginning of operation, by rewarding users who provide and lock liquidity for a certain period of time, and at the same time a very attractive token distribution model. The reward for those who participate are the native dex tokens.
The first use of this strategy dates back to 2018, when Edgeware presented the lockdrop model. Historically projects such as Astroport have also utilized this strategy.
How will SpartaDEX benefit from the lockdrop?
- access to stable, deep liquidity available from the very beginning of the protocol operation;
- onboarding of key partners related to the Arbitrum;
- building community engagement focused on the real success of the project;
- decentralized token distribution since the very beginning
And benefits for you, our users?
- access to a lion’s share of $SPARTA initial circulating supply,
- early exposure to ecosystem rewards for providing LP;
SpartaDEX lockdrop timeline
Lockdrop is a simple process, however, it consists of various phases and is stretched over 11 days. The schedule of SpartaDEX lockdrop is presented below:
- Phase I: 24th — 30th July 2023
- Phase II: 30th July — 3rd August 2023
- $SPARTA TGE: 3rd August 2023
Each lockdrop phase and substage has different rules. Now we’ll try to explain them in the simplest way possible.
Phase 1: Locking the liquidity of the chosen pairs (July, 24–30)
In this phase, liquidity of selected pairs (e.g. $ETH — $USDC) can be migrated from one of the twoselected dexs (Sushiswap, Camelot) and locked in SpartaDEX. Also, if a user is not providing liquidity on any dex, he can add it in an easy way and lock in Sparta.
Each user is free to decide whether to take part in the lockdrop, the size of the locked position and the duration of the lock, which may vary between 2 and 52 weeks. The value of the drop depends on the duration of the lock and the value of locked assets;
Each LP pool has its own, separate allocation of $SPARTA tokens, which will be distributed as rewards among lockdrop participants.
The first phase consists of two periods:
- Days 1–5: providing and withdrawing liquidity is available without any limits;
- Days 6–7: providing liquidity is still available, however withdrawing is not possible;
Rewards:
The reward in the first phase is 6% of the $SPARTA supply. As much as 50% of it will be available during the TGE, and the remaining part will be distributed linearly over the next 6 months. This amounts to nearly 57% of initial circulating supply!
Additionally, supporters locking LP at the very beginning of this phase will get a boost in rewards of up to 15%. Boost will be decreasing linearly till the end of the phase one.
How to participate in Phase I?
Step 1: Add liquidity of eligible pairs on one of whitelisted exchanges — Sushiswap, Camelot
Step 2: Get LP tokens
Step 3: Lock your LP tokens using our lockdrop website: http://lockdrop.spartadex.io
Step 4: Choose the value of your position and duration of the lock-up period
Step 5: Confirm the action in your wallet
$SPARTA tokens distributed during the first phase account for 57% of the initial circulating supply and can be used in the second phase (together with tokens distributed in the airdrop).
Phase 2: Locking $SPARTA liquidity (July 30 — August 3)
In the second phase of the lockdrop users will lock $SPARTA tokens (acquired in the Phase 1 and through the Airdrop), and/or $USDC to the pool, for the fixed duration of 26 weeks.
USDC can be locked by anyone without the need to lock $SPARTA and vice versa. In this phase $SPARTA once locked can’t be withdrawn, but $USDC is subject to withdrawals until the last two days of this phase.
The final ratio of the $SPARTA/$USDC pool will determine the initial price of the token.
It’s important to note that by adding only $SPARTA or only $USDC, your tokens are being exchanged for LP proportionally to the $SPARTA-$USDC ratio. That means that despite adding only one token of the pair you’ll get $SPARTA-$USDC LP.
Rewards:
The reward in the second phase is 1% of $SPARTA supply, of which 100% is available at TGE. Both sides of the $SPARTA-$USDC pool will be equally incentivized with 0.5% of the supply.
How to participate in Phase II?
Step 1: Visit our lockdrop website: http://lockdrop.spartadex.io
Step 2: Check your $SPARTA balance after Phase I and Airdrop
Step 3: Choose how much $SPARTA and/or $USDC you’d like to lock
Step 4: Confirm the action in your wallet
$SPARTA lockdrop rewards from the Phase 2 accounts for nearly 19% of the initial circulating supply.
Important notes!
- During the lock-up period your LP is working and earning also $SPARTA from the Ecosystem Rewards pool.
- Each dex has it’s own number of LP tokens. 1 LP token on SushiSwap may equal 7 LP tokens on SpartaDex, so the final number of tokens may differ from what you had on other dexs. Of course, in terms of value and tokens ratio will be exactly the same, you are not losing anything.
What will happen after the lockdrop?
At the end of the lockdrop, the LP tokens locked in the first phase are migrated and transferred to SpartaDex (broken into output tokens creating pools on SpartaDEX). $SPARTA and $USDC tokens locked in the second phase are exchanged for LP $SPARTA/USDC in proportion to their contribution.
Summary:
All the crucial information has been collected, shortened and presented in the form of a simple table below:
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Stable and deep liquidity is the key to the prosperity of any decentralized exchange. The strategy we used is a win-win for both the successful launch of SpartaDEX and for all those who want to support us from the very beginning. You are on the verge of starting a completely new, fresh trend in DeFi and our lockdrop is the best chance to be the earliest adopter possible. We invite you to http://lockdrop.spartadex.io on July 24th!
To stay up to date with all the information, follow us and join the most courageous community on Arbitrum — the Spartans!
Twitter: https://twitter.com/Spartadex_io
Discord: https://discord.gg/spartadex
Website: https://spartadex.io/
Telegram: https://t.me/SpartaDEX
