ShimmerSea Fairlaunch

Launch Strategy for LUM

The ShimmerSea DEX will be launched via a fairlaunch event. This means that no large amount of tokens (LUM or Magic LUM) have been/will be minted and distributed to users/community via ICO, private sale or pre-airdrops. LUM can be earned or purchased via the exchange through liquidity farming/staking.

The only LUM pre-mint is required for the Fairlaunch Event. For this reason, 500.000 LUM will be minted and locked in the Fairlaunch SC. Through the Fairlaunch Event, all initial liquidity is distributed to the community and is not owned by the ShimmerSea DAO. Thus, a rug-pull via the native LUM token can be excluded.

Launch Strategy for Magic LUM

Magic LUM can only be refined via the Booster. There will be 5000 Magic LUM pre-minted for the MagicLUM/USDT pool. This liquidity belongs to the ShimmerSea Treasury.

The Magic LUM Booster will not be available from day one. After the DEX is launched, the Booster will be deployed later and for the beginning only accessible for certain whitelisted addresses (20% tokens will be minted during this access restricted period). This is for two key reasons:

1. Due to the fair launch, there are only a few Native Tokens ($LUM) at the start. For this reason, it is important in the first phase of the DEX that enough LUM tokens are minted and brought into circulation. This will ensure that enough trading liquidity is available for the native farms (LUM/SMR, LUM/USDT). As explained in the upper sections of this whitepaper, high liquidity in the pools is important for a DEX to ensure a satisfactory trading experience. Pools that are too small have too much slippage, which is bad for the users of this DEX. Accordingly, it would not be ideal to burn a lot of LUM via the booster right at the beginning of the DEX. The DEX still has too little liquidity at this time.
2. The whitelisting period gives the core team the opportunity to participate with a share in the success of ShimmerSea. Since the team is doing a fair launch, and has not done a private/public/NFT sale, this mechanism is a way to get into DEX themselves. Unlike other protocols, all generated revenues from ShimmerSea are either used to buy and burn LUM from the market or the revenues flow directly into the Magic LUM staking pool.

Prior to the launch, a detailed plan will be announced on how the launch will take place and what will happen over the first few days of the DEX.