BIOPSY-7 🧪 Update Genesis Swap Strategy

One-liner: Proposal to update Swap Weights and create 4 sequential auctions.

Strategic Purpose: Optimize protocol reserves for liquidity and meta-governance activities in leading DeSci DAOs.

TLDR

• 664,000,000 $BIO (20% of initial supply) will still be issued in exchange for 8 different assets (8 DeSci tokens)
• Implements 4 sequential auctions, each with ¼ the BIO of the original proposal, to adapt to market volatility
• The first auction will start on August 8, 2024 and run for 11 days. Subsequent auction dates and contract addresses will be discussed and announced in the BIO forum
• Maximum valuation for the first auction will be $100M FDV
• Weighting adjustments reflect changes in value of circulating supply and relative market positions of DeSci tokens
• Unless specified, all details of the auction and mechanism are the same as defined in BIOPSY-4

Description

Due to changing market conditions and tokenomics analysis, an addendum to BIOPSY-4 is proposed. The initial auction for 20% of the token supply will be split into 4 sequential auctions, with the first auction having 5% of the BIO token supply allocated. After the successful conclusion of the first auction, the remaining auctions will be defined and launched over the following months. The discussion around subsequent auctions can be followed on the BIO forum.

Motivation

With theGiven recent volatility ofvolatile markets, a risk mitigating strategy for the Genesis Launch has been applied. The weights of BIO per DeSci tokens have been adjusted. The new weights reflect changes in market prices and take into account xDAO treasury holdings to ensure a fair distribution based on current market positions. The below table describes the adjusted auction parameters for the first auction.

The BIO distribution allocated for the Genesis Swap will be split on 4 subsequent auctions. Auction 1 has been allocated ¼ of the initially 20% supply, resulting in a 5% BIO supply being allocated to this auction. Decisions on subsequent auction distribution will be led by bio core pending market development.

Similarly to BIOPSY-4, each swap pair has a Deposit Cap. According to BIO allocation per auction and adjusted weights, the Caps for the first auction have been adjusted. If Deposit Caps are reached on all swap pairs, approx. $5M in asset value will be added to the BIO treasury across all tokens. The maximum FDV at this Deposit Cap will be $100M.

	Auction #1
	Weight % of Genesis Round 1 Swap	Weight % of Total BIO Supply Swap	BIO Allocated	Max xDAO (Deposit Cap)
VITA	11.36%	45.44%	75,430,400.00	2,167,938.93
HAIR	2.45%	9.81%	16,284,600.00	18,000.00
GROW	3.03%	12.12%	20,119,200.00	1,352,678.57
ATH	2.59%	10.36%	17,197,600.00	1,403,794.04
CRYO	1.08%	4.31%	7,154,600.00	481,026.79
RSC	1.25%	5.00%	8,300,000.00	1,269,035.53
NEURON	2.59%	10.36%	17,197,600.00	2,357,867,904.77
PSY	0.65%	2.60%	4,316,000.00	1,300,000.00

            |

| Total Swap Supply | 25% | 100% | 166,000,000.00 | |

This proposal supersedes BIOPSY-4 where it differs. The remaining aspects are defined by BIOPSY-4.