Should a Liquidity Bootstrapping Pool be deployed on Ethereum and Polygon?

Popcorn is progressively decentralizing its network by distributing decision-making power to a wider group of people.

This is a proposal to make 3.75% of the Popcorn (POP) token supply available for interested parties within the Popcorn community. It uses Balancer, a decentralized exchange, and leverages a mechanism called Liquidity Bootstrapping. By deploying the pool on Balancer, it will also be available to interact with on Copperlaunch.com.

The purpose of this proposal is to:

1. Distribute the POP token among the wider Popcorn community, beyond early contributors and team members.
2. Build deep liquidity for the Popcorn, setting it up for long-term success.
3. Begin price discovery for the POP token.
4. Proceeds from the event will be held by the Popcorn Treasury, a smart contract gnosis-safe controlled by the POP token holders on Polygon and an Aragon DAO on mainnet.

LBP specifications for Polygon

Pool tokens: POP and USDC POP start balance: 1,875,000 USDC start balance: 562,500 POP start weight: 99 POP end weight: 50 USDC start weight: 1 USDC end weight: 50 Swap fee: 1.5% Duration: 2.5 days LBP Manager address: 0x9F3EcFDCE702514Bf3dF6f2Dc3Aa8A6937F5dd91

LBP specifications for Mainnet

Pool tokens: POP and USDC POP start balance: 1,875,000 USDC start balance: 562,500 POP start weight: 99 POP end weight: 50 USDC start weight: 1 USDC end weight: 50 Swap fee: 1.5% Duration: 2.5 days LBP Manager address: 0xe7F0E61a07D540F6Ab3C3e81D87c6ed0F2C0244d

What is a Liquidity Bootstrapping Pool?

Balancer’s Liquidity Bootstrapping Pool (LBP) is a Balancer pool that automatically adjusts its token weights over time. This applies downwards price pressure on the token and disincentivizes front-running, speculation, and whale buying. See Balancer’s Liquidity Bootstrapping Pool FAQ for more information.

Why a Liquidity Bootstrapping Pool?

The Liquidity Bootstrapping Pool is a battle-tested mechanism for price discovery and liquidity building. It’s been successfully used by numerous teams including Radicle, Hydra, APY Finance, and Perpetual protocol.

How was this proposal discussed?

This proposal was put together by early contributors behind the Popcorn project.

Moving forward, all proposals will be discussed openly and developed through the formal governance process. This process is meant to be owned and developed collectively by the Popcorn community. More information can be found on forum.popcorn.network

Special thanks

Special thanks to the Radicle project for their exemplary open-source documentation and proposals which inspired this proposal.

Executable Code

The following will be executed on Polygon by the gnosis-safe DAO agent:

Signature: deployLBP()
Calldata: undefined
Target: 0xe7F0E61a07D540F6Ab3C3e81D87c6ed0F2C0244d
Value: 0

The following will be executed on Mainnet by the Aragon DAO agent:

Signature: deployLBP()
Calldata: undefined
Target: 0x9F3EcFDCE702514Bf3dF6f2Dc3Aa8A6937F5dd91
Value: 0