Proposal to Launch a Liquidity Bootstrapping Pool on Fjord Foundry

Shutter DAO DAO Proposals
1

Status: Proposed

Author: Sausage Doge - Product Lead @ Fjord

Created: 23/01/2024

Summary

Launch a Shutter Token (SHU) Liquidity Bootstrapping Pool (LBP) on Fjord Foundry in mid-February 2024

Proposal

The Shutter Network community recently deployed Shutter DAO 0x36 and Shutter Token (SHU, 0xe485E2f1bab389C08721B291f6b59780feC83Fd7).

If/when SHU is transferable, it will be beneficial to a) employ a proven price discovery mechanism and b) to aid in the creation of liquid markets so Shutter Network community members can buy and sell SHU in exchange for other assets in trading pools on decentralized exchanges (DEXs) and/or centralized exchanges (CEXs). Trading pools require at least two assets: SHU and another asset - commonly USDC or ETH. Shutter DAO 0x36 is currently not able to set up trading pools because it currently holds SHU, but it does not hold significant quantities of any other asset.

Launching a Shutter Token (SHU) Liquidity Bootstrapping Pool (LBP) on Fjord Foundry would enable Shutter DAO 0x36 to acquire an additional asset in a transparent and decentralized manner. Launching the LBP in mid-February 2024 would align well with the timelines of Shutter DAO 0x36 and the Shutter Network community, and would capitalize on the current high levels of activity in the broader web3 space.

Fjord Foundry believes an LBP is a perfect fit for the Shutter DAO 0x36 because it is aligned with the mission and values of the Shutter Network community for several reasons:

  • An LBP enables a safe, neutral and market driven open price discovery mechanism,
  • An LBP opens up participation in the Shutter DAO 0x36 to a wider, more diverse group of people, and
  • An LBP is an on-chain mechanism which can be triggered via an onchain DAO proposal.

Fjord Foundry

Introduction

Fjord Foundry is a community-focused platform that specializes in connecting innovative projects with engaged backers. Fjord Foundry offers a variety of token liquidity and price discovery methods, including the most popular and well-renowned method—Liquidity Bootstrapping Pools (LBPs).

Fjord Foundry is built on the principles of fairness and transparency. Fjord Foundry’s mission is to

  1. democratize access to early-stage opportunities for their community of backers.
  2. provide projects the means to bootstrap liquidity in a seamless and straightforward manner.

For both backers and projects, Fjord Foundry provides an all-in-one environment geared towards early-stage ideas. Backers can explore a selection of early-stage opportunities that resonate with their passions and beliefs. Projects can focus on what truly matters—building out their vision and generating liquidity for decentralized exchange trading.

Fjord Foundry serves at the inflection point where backers and projects engage, collaborate, and grow together.

Proven Success and Expertise

Fjord Foundry boasts a significant track record, having assisted over 500 teams to bootstrap nearly USD $800 million in liquidity. This success is a testament to their expertise and understanding of the market. Additionally, Fjord Foundry’s strategic partnership with Balancer amplifies our offerings, merging innovative liquidity strategies with effective token launch practices.

Flexible, Accessible, and Compliant

Fjord Foundry policies are attractive: no upfront fees, and capability to block specific countries to ensure accessibility and regulatory compliance.

Fjord is designed to be user-friendly, inviting broad participation from backers across the spectrum.

Comprehensive Advisory Support

Fjord Foundry is able to offer tailored advice to the Shutter DAO regarding LBP setup and execution. Their expertise in pricing strategies, liquidity management, and community engagement is geared towards optimizing token launches.

Ideal for DAOs

Fjord Foundry’s approach is ideal for Shutter DAO because it is centered on transparency and community, and it embodies the principles of decentralized governance.

Context

A Liquidity Bootstrapping Pool (LBP) is a revolutionary approach to facilitate fair and transparent token launches. It operates on a high-to-low pricing mechanism, akin to a Dutch Auction, where prices start high and decrease over time. This mechanism is a strategic choice by project and LBP creators to mitigate the influence of sniper bots and large investor (whale) manipulation. Participants have the opportunity to engage in community-driven price discovery, buying tokens at a price point they find equitable. LBPs represent a significant advancement in creating a balanced and inclusive environment for token distribution.

Links

Fjord Foundry Website: https://www.fjordfoundry.com/

Fjord Foundry LBPs: https://app.v2.fjordfoundry.com/pools

Fjord Foundry Documents: https://help.fjordfoundry.com/fjord-foundry-docs/

Fjord Foundry Twitter: https://twitter.com/FjordFoundry

Platform

Snapshot (no onchain action)

Vote

  • Vote “YES” if you support launching a Shutter Token (SHU) Liquidity Bootstrapping Pool (LBP) on Fjord Foundry in mid-February 2024

OR

  • Vote “NO” if you do not support
8 Likes
2

Yes - Where do we vote - More than happy to help on that! Great proposal!

2 Likes
3

Could you pls give more info about how the last 3 LBP did in the platform(basic data includes participate user, moeny raised, and so on). And what do you think the market condition will affect shu’s LBP based on ur data and experience. Thanks.

1 Like
4

@franklivid Great questions! Interested to hear @sausagedoge 's comments. Also, adding a few of my own here:

You can view a list of recent LBPs here: https://app.v2.fjordfoundry.com/pools?status=Ended

Scraping data from the Fjord Foundry website, I found the number of LBPs and average amount raised has increased significantly in Dec 2023 and Jan 2024:

  • Jan 2024: 8 LBPs, $24.8M raised ($3.1M raised on average)
  • Dec 2023: 4 LBPs, $8.5M raised ($2.1M raised on average)
  • Nov 2023: 0 LBPs
  • Oct 2023: 0 LBPs
  • Sept 2023: 2 LBPs, $464K raised ($232K raised on average)
  • Aug 2023: 1 LBP, $593K raised
  • July 2023: 2 LBPs, $576K raised ($288K raised on average)

I think the increase in LBPs and total/average raised is due to 2 primary factors:

  • the recent launch of Fjord Foundry v2
  • the recent “early bull” driven by BTC ETF news and altcoin growth
1 Like
5

Also: The amount raised is not the only/best indicator of an LBP’s success. Other indicators include:

  • % of tokens sold (higher % indicates more demand)
  • number of participants (1,000+ is a tipping point)
  • price curve (it should initially dip, level out and then raise slightly at the end)
2 Likes
6

sounds great! yes “no upfront fees, and capability to block specific countries to ensure accessibility and regulatory compliance.”

2 Likes
7

Great read in this thread, thanks @franklivid and @OKX_Ventures for your questions and thanks Loring for bringing up more details on that. If not mistaken I think you forgot a “K” on the two last raised amounf of FFoundry.

Anyway, seeing these threads, I am happy to help, however I can, but not sure exactly how to, so please do propose when you have time some ideas for us to actually “do something” and take out some burden out of your shoulders!

Cheers.

1 Like
8

You can also see our data room here, although we are working on updating it to include V2.

https://dune.com/0xmertt/fjord

2 Likes
9

This is great, thx for the info!!

1 Like
10

I voted against this proposal.

Not because I do not like Fjord, but because it is bad governance to pass proposals from the service provides themselves when the DAO delegates do not know about alternatives.

The proposal does not contain fair and neutral information

  • What are alternatives for Fjord
  • What are the metrics should proposals should be compared between the different liquidity programs
  • If Shutter token holders would have a better liquidity provision program with someone else

Thus, the DAO delegates cannot make a good decision that benefits the token holders based on this proposal. This proposal is self-dealing for Fjord.

2 Likes