TUR-MGX Liquidity Bootstrapping Event
This document will cover information on the TUR-MGX liquidity pool and bootstrapping event launching on the Kusama decentralized exchange (DEX)-Mangata X. Community members that participated in the Turing Network crowdloan will be able to use $TUR to provide liquidity and earn rewards. New supporters and anyone who missed the crowdloan will have the opportunity to provide liquidity by supplying $MGX or acquiring $TUR by swapping $MGX (after the conclusion of the bootstrap).
The bootstrap event will begin on August 29th at 14:00:00 UTC and will last for 48 hours. At the completion of the bootstrap, users will be able to acquire $TUR through the swap functionality of the pool. The liquidity pool will last for another 7 days after TUR trading begins.
For a comprehensive how-to guide to complete a contribution to the bootstrap event click here.
About the Bootstrap
Bootstrapping is a key mechanism to establish liquidity on any decentralized exchange. The following section will cover relevant information about the process.
What is a Liquidity Bootstrap
A liquidity bootstrap is an event in which a liquidity pool is filled so that a token can be listed on the DEX and so that users can eventually perform swaps and acquire the new asset. Users that participate by providing liquidity will receive rewards from the later trading of $TUR on the Mangata X platform. Bootstrapping events play a critical role in the defi ecosystem — helping prevent slippage from a liquidity pool that is not large enough. The bootstrapping period allows time for the liquidity pool to grow before trading begins.
What are the Goals of the Bootstrapping Event
The liquidity bootstrapping event has a variety of goals and key outcomes listed below.
- Ensure deep liquidity on the TUR:MGX liquidity pool.
- Discover the price of the $TUR token. As this will be the first listing of $TUR on an exchange we will see our first price discovery.
- Incentivize and reward our community of $TUR token holders to participate and provide liquidity to the pool.
- Give an opportunity for new supporters to receive an allocation of $TUR tokens.
How does the TUR-MGX Liquidity Bootstrapping Event work
There are some key concepts to understand when describing the process of a liquidity bootstrap.
- Duration: The duration of the bootstrapping event will be 48 hours long.
- No trading for first 48 hours: Trading will not be available in the 48 hour bootstrapping period.
- Users can provision TUR and MGX: There is no limit for token contributions into the liquidity pool. Users are free to provision one side of the pool ($TUR and $MGX) or both sides.
- The ratio of TUR:MGX at the end of the bootstrap is important: The ratio of tokens will determine the liquidity pool reward proportions.
- Claiming Liquidity Pool (LP) tokens: At the end of the 48 hour bootstrap, users will need to claim their LP tokens to use for liquidity mining.
- Entire duration for bonus rewards: Users who withdraw TUR:MGX liquidity before 14:00:00 UTC on September 7 are not eligible for the Turing Bootstrap Bonus.
- Supported Wallets: The Mangata X decentralized exchange currently supports the Polkadot.js extension wallet and the Talisman wallet extension.
What is the timeline for the TUR-MGX Liquidity Bootstrapping & liquidity pool
The current timeline for the bootstrap and liquidity pool on Mangata X are as follows:
- Bootstrapping event begins — August 29th at 14:00:00 UTC.
- Initial bootstrap event ends — August 31st at 14:00:00 UTC.
- Users can claim LP token rewards — End of bootstrap event.
- Trading for TUR enabled — End of bootstrap event.
- TUR:MGX Liquidity pool opens — August 31st at 14:00:00 UTC.
- TUR:MGX Liquidity Bonus Snapshot — September 7th at 14:00:00 UTC.
Bootstrapping Rewards & Need to knows
Bootstrapping and liquidity pools can create significant rewards for participants but like all blockchain services there are also potential risks that being aware of can help users stay safe.
What type of rewards will we receive?
The OAK Network team has included a bonus 50,000 $TUR from our Strategic Partnerships Fund to reward users who contribute $TUR or $MGX tokens to the bootstrap event and to users who continue to provide liquidity to the pool.
Mangata also offers liquidity rewards for all liquidity pool contributors. You can find details on the MGX rewards in their tokenomics documentation.
To understand how liquidity pool rewards work on the Mangata X platform we recommend checking out this resource which describes how the Mangata DEX uses proof-of-liquidity. The YouTube video below from the Mangata team also describes the process of liquidity pools and other concepts related to decentralized exchanges.
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DEX Basics — Mangata Video
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What must I know to be safe?
Participating in liquidity provisions is not without any risk so making sure you know the process is important for staying safe.
During the bootstrapping period any contributed tokens are transferred to the pool and cannot be retrieved. All users will then be able to claim their rewards at the end of the bootstrapping event. The rewards will be determined by the ratio of TUR:MGX in the pool — so you will be unable to accurately determine the exact rewards at the time you provide a provision.
Our team recommends that users who are new to liquidity provisions undertake significant research to become properly informed and that you only invest small portions when starting out.
You can visit our Discord to learn more about the process and to ask any questions you might have about the Bootstrap Event.
Limitations
- Due to current legal restrictions, US citizens cannot participate in the Bootstrap Event at liquidity.mangata.finance.
FAQ
Where can I learn more about Mangata?
You can learn more about the Mangata parachain and their DEX on their website and on their blog site which includes comprehensive documentation. We also recommend checking out their DEX to become familiar with the platform.
What do I do if I don’t have any TUR tokens?
You can participate in the bootstrap by swapping $KSM for $MGX on Mangata X. After the 48 hour bootstrap you will be able to swap for $TUR and contribute to the liquidity pool (or use the $TUR tokens for staking or other actions).
Can I still participate if I only have KSM tokens?
You will need either $TUR or $MGX to participate in the bootstrap and liquidity pool events. You can however use Mangata X to swap $KSM for $MGX.
Where can I learn more about Turing?
To learn more about the Turing Network we recommend checking out our website as we have a variety of resources available. If you have questions or queries we have team members available on our Discord to assist you as best they can.
Does the bootstrap work like Karura or Zenlink?
Yes, for users who have experienced bootstrap liquidity pools on Karura or Zenlink the process is similar.
Will TUR be available on other exchanges?
Currently our main focus is on our Mangata listing. In the future we will likely list on more exchanges but we recommend any users who are interested in acquiring $TUR to do this via MangataX.
In what currency are gas fees paid in?
Fees will be payable in $TUR, $MGX and $KSM.
What is the difference between Proof-of-Liquidity and Liquidity Mining?
Liquidity mining is an incentive for providing liquidity.
Proof-of-Liquidity is a method to secure the network against front-running and MEV. It is similar to Proof-of-Stake in other blockchains but uses liquidity instead of native tokens.
There is no lock or unbonding period when providing liquidity as a LP. But if you stake your LP tokens in proof of liquidity, there will be a 7-day unbonding period before you can swap back. More information about this concept can be found here.
I have a question that is not covered here.
If you have any questions or queries that have not been answered please check our Twitter or reach out to us via Discord or Telegram.
About Mangata
Mangata is a next-generation DEX with the mission to make tokens from all ecosystems tradable on a single DEX. It features gasless swaps, prevents front-running and MEV on the consensus level without additional fees, and secures the network with the revolutionary proof-of-liquidity consensus. As a Layer 1 app-chain building on Substrate, it is not bound by legacy restrictions and can customize the rules of the chain to optimize the whole ecosystem around capital efficiency and fairness.
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About Ava Protocol
Ava Protocol is an intent-based Eigenlayer AVS that seamlessly enables private autonomous transactions for numerous use cases, such as DeFi, NFTs, and games. We're enhancing decentralized applications with scheduled and recurring payments, stop-loss orders, streaming rewards, and more. Ava Protocol’s event-driven execution model triggers cross-chain transactions based on signals such as time, price changes, and smart contract updates. Developers can easily schedule and automate functions across different blockchains, including Ethereum, ensuring efficient and reliable execution without compromising privacy.
About Ava Protocol
Ava Protocol is an intent-based infrastructure that empowers private autonomous transactions for Ethereum and beyond.
