Skip to main content

Initial Liquidity Program

Overview​

1. The Main Goal​

Create a smart contract that manages DKO’s Initial Liquidity - a strategic fundraising mechanism that collects funds from early supporters, matches it with DKO tokens, and locks liquidity for 2 years to bootstrap the Duckstail DEX ecosystem.

2. Key Economic Foundation​

IMPORTANT: This is the genesis fundraising event for Duckstail DEX. The ILP establishes the initial DKO price and creates the foundation liquidity that will launch the entire ecosystem. Only DKO/ETH pair will be available initially.

Why Start with DKO/ETH Only​

  • Focuses initial liquidity on the most important pair
  • Simpler launch with less complexity
  • Allows concentrated marketing and attention

3. The Problem We’re Solving​

  • Bootstrap Problem: New DEX needs initial liquidity to function
  • Trust Problem: Investors need guarantees against rug pulls
  • Capital Problem: Need funds to create meaningful liquidity
  • Time Problem: Need defined timeline to create urgency

Program Structure​

1. Target and Thresholds​

Maximum Target: $10,000,000 total fundraising
Minimum Target: $2,000,000 for activation
Initial Pair: DKO/ETH only
Initial Price: $0.25 per DKO
Lock Period: 730 days (exactly 2 years)

2. Three-Phase System​

Phase 1 - Activation Point​

  • Trigger: When total contributions reach $2M
  • Action: Automatically activates 30-day countdown timer
  • Status: Fundraising continues but with visible deadline
  • Transparency: Public countdown showing time remaining

Phase 2 - Opportunity Window​

  • Duration: Exactly 30 calendar days from Phase 1 trigger
  • Goal: Maximize fundraising toward $10M target
  • Access: Open to new participants during entire window
  • Pressure: Time limitation creates urgency

Phase 3 - Closure and Burn​

  • Trigger: 30 days elapse OR $10M target reached
  • Action: Automatic closure regardless of final amount
  • Burn: All unallocated DKO tokens burned immediately
  • Lock: 2-year lock period begins for all participants

Participant Requirements and Terms​

1. What Participants Must Provide​

  • ETH ONLY! Just provide ETH (focus on DKO/ETH pair exclusively)
  • No Mix/Max Contribution Limit
  • No secondary pairs, no complexity, 100% focused

2. What Participants Receive​

DKO Matching​

  • Protocol matches ETH contribution 1:1 in USD value with DKO
  • If contributor provides $100k worth of ETH, they get $100k worth of DKO
  • DKO valuation fixed at $0.25/DKO for ILP calculations
  • Example: $100k ETH contribution = 400,000 DKO tokens received after lock period

Lock Terms​

  • All ETH and matched DKO locked in DKO/ETH liquidity pair for exactly 730 days
  • Cannot farm DKO emissions during lock period (no farming rewards)
  • Cannot withdraw principal early under any circumstances
  • Trading fees accumulate during lock period and are claimable after lock period

Final Summary​

The ILP is the genesis event that launches the entire Duckstail DEX ecosystem.

Key Features​

  • ✅ fundraising with automatic activation
  • ✅ 30-day urgency window after $2M threshold
  • ✅ 1:1 DKO matching for all participants
  • ✅ 730-day lock period proving long-term commitment
  • ✅ Automatic DKO burn after ILP
  • ✅ Focus on DKO/ETH pair for concentrated launch impact

This is where everything begins - the ILP creates the foundation that makes all future contracts and pairs possible! 🚀