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LBP-related and other questions
Q1: Price of tokens for “seed” investors/founders?
There is no market price for HDX as of yet as it will be discovered in the Balancer LBP. Investors did not buy into the token but % of the company that has a right to 15% of the network. There was no price on tokens. Thus, founders, employees, advisors and investors are entitled to 15% in total.
Q2: The Team?
The Zee Prime team has co-founded the project, which is led by Jakub. Other Jakub has joined as a technical co-founder and a CTO. Besides them, there are 4 other senior developers working on the project full time, plus two front end devs and a designer (see our github repo). Then there is our talented and always ready to help community manager Pavol 😊. We are working with Blockscience on advanced mathematical modelling.
Q3: Is there a price graph of the LBP anywhere?
Q4: What is the vesting schedule for the team and investors?
The current vesting schedule stands as following:
Investorshave a monthly cliff vesting period for 18 months since the mainnet, with the first 1/18 unlocked at the mainnet launch.
The team/founders have additional 6 months to wait after mainnet launch to start vesting for 18 months (24 months total, monthly cliffs).
Q5: Any exchange listings in the works?/ When token trading?
We are not actively seeking listings, the ultimate goal is to have HDX priced and traded in and around our native liquidity protocol - Omnipool. However, we do not discount the possibility that HDX will be listed on other exchanges.
However, it is unlikely that the exchanges will list new Substrate-based tokens before parachain auctions. HDX LBP and this early entry is for people who believe in the team, the idea and the tech.
Please keep in mind that tokens will likely not be tradable for some time (probably until mainnet+couple of weeks). The tokens, however, will be immediately stake-able, generating rewards during the „unlisted” phase and beyond.
Q6: What is xHDX?
xHDX is an ERC20 representation of HDX. xHDX will be redeemable as HDX 1:1 on the HydraDX Stakenet soon after LBP. Please note, that this is not a wrapped HDX. It is not intended to be used on Ethereum network and there is nothing else you should be doing with xHDX apart from acquiring it during LBP and then redeem for native HDX. You risk losing your tokens if you put your xHDX into other smart contracts such as Uniswap LP.
Q7: How is it possible that someone bought $50k worth of xHDX before the LBP?
Please, our explanation on Twitter.
When you create the Balancer LBP contract, it is deployed as unpaused so technically anybody can trade with it in that instance. Unfortunately someone (probably a bot) was able to frontrun the pause command by 1 block.
This incident does not really matter. It is possible that the price paid was too high. In the LBP, being first doesn't necessarily mean having the best price. On the contrary, since at the beginning the price is falling, it could be expected that without constant extreme buying pressure the price will fall.
Q8: Participate only with DAI?
DAI is set by the LBP contract. If you want you can use any balancer pool supported token but this comes with an additional fee (there additional swaps that have to be paid). The cheapest way is to buy with DAI (e.g. on centralized exchange) and send it to Metamask wallet.
Q9: When mainnet?
Our target is ~6 months. However, we also depend on Polkadot infrastructure to be ready and fully functional. It is reasonable to factor in delays. The team is still aiming for the end of Q2.
The tokenomics is in an advanced stage of being formalized. Given that HDX has some unique properties the team along with our partners at Blockscience are making sure that every detail and edge-case scenario is covered.
Note, that the whole project is very long-term oriented so one can expect that the parameters will be aligned with such ambitions. We expect the details to be fully formalized and revealed in the next couple of weeks.
The basics that we already know:
15% Founders, Investors & Advisors
5% LBP (proceeds will be used as a bootstrap for native liquidity on HydraDX Omnipool)
5% Incentivized Stakenet (bounties, staking rewards, etc. during Stakenet)
75% liquidity provision and staking rewards
The circulating supply at mainnet is expected to be ~25% total (out of which 60% are being vested).
Q11: When will you release the guide on how to claim/redeem HDX?
Before the end of the LBP.
Q12: How much time I have after I have bought xHDX to swap/redeem into HDX?
We are not putting any timeframe on this. Let’s say years. However, it is recommended to claim sooner so you will be able to stake.
Q13: Does the LBP work only “one-way”, meaning it will be only possible only to buy and not to sell?
No, it will work like a normal pool (with changing weights). You can trade normally during the LBP which means you can also sell xHDX into the pool. The pool will be terminated after it stops changing weights (~3 days). Balances will be frozen so that we can snapshot the state and you will be able to claim/redeem HDX on HydraDX chain right after.
Q14: So when the LBP finishes, the balances will be frozen? The only thing we will be able to do is to do the swap xHDX → HDX?
Yes, when the LBP concludes, the xHDX balances will be frozen. The only thing to do is to claim/redeem HDX on HydraDX chain and nominate your stake or become a validator.
Q15: Is there a max amount of contribution for the LBP?
No minimum or a maximum.
Q16: If there is no maximum, so in theory a bot could scoop it all up immediately?
In theory yes, but the slippage would be enormous. E.g. in theory, if you would want to buy almost all the tokens (say 90% of xHDX in the pool) during the first day gradually, it would cost upwards of $2,000,000,000. This would send the token price to roughly 91$, making it the most valuable cryptocurrency by implied/fully diluted market capitalization.
Q17: What is the timeframe for the “Stakenet”?
It is actually running (see HERE). Couple of days after LBP we will allow people to redeem HDX, then we'll wait for validators to prepare (1-2 weeks) and then we'll open it up and enable staking.
Q18: How much did the project raise in the seed round?
The company tasked with deploying the HydraDX chain has raised $1.5mm. Proceeds are being used for ongoing development of HydraDX.
Q19: Could someone confirm how the initial price (0.0296$) of the xHDX token in the LBP was calculated?
The price was calculated from the amounts of tokens in the Balancer pool and their weights
(500 000 000 HDX and 1 200 000 DAI in weights 92.5 : 7.5 = (1200000*92.5)/(500000000*7.5) = 0.0296
However, as mentioned before, the sneaky buyer who managed to slip in the transaction before the LBP started had increased the price to $0.0312.
Q20: Can others who didn't participate in LBP also start to mint HDX with DOT or ETH at mainnet launch?
After the mainnet launch anyone will be able to buy HDX anytime.
Q21: When does HDX trading start?
After the mainnet launch, you will be able to buy HDX anytime from the HydraDX protocol directly. We cannot speak to possible CEX listings. However, we consider exchange listing unlikely before the mainnet.