ICX Capped Liquidity Window
ICX Liquidity Bootstrapping
Purpose and Logic
The Capped Liquidity Window (CLW) is the entry point to the ICX Protocol. Its primary purpose is to bootstrap the initial liquidity required for protocol operations while providing participants with ultraLP tokens (ICX Miners). These tokens are integral to the ICX ecosystem, granting access to staking and yield generation.
The CLW is structured as a Liquidity Bootstrapping Pool (LBP), allowing participants to deposit ETH in exchange for ICX Miners. This process ensures a fair distribution mechanism while establishing a strong ETH liquidity base for the ICX/ETH trading pair.
Mechanics of the CLW
Duration: The CLW runs for a fixed period of 72 hours, ensuring sufficient time for participants to engage.
Token Allocation:
5 Billion ICX Tokens are allocated to the CLW, representing 4.35% of the total ICX supply.
Any unsold tokens at the conclusion of the CLW are permanently burned, reducing the initial circulating supply.
ETH Contribution:
Participants deposit ETH to acquire ultraLP tokens at dynamically adjusting rates.
ETH deposited during the CLW is utilized as follows:
90% is paired with ICX to establish the ICX/ETH UniV2 liquidity pool.
10% is allocated to the NXD/DXN UniV2 liquidity pool to support DXN staking.
Dynamic Pricing:
The starting price for ICX is $0.001 per token.
The price decreases by 0.035% per minute over the course of the CLW, mimicking the dynamics of a Liquidity Bootstrapping Pool.
Significant ETH deposits dynamically adjust the price upward, balancing demand with supply and creating a natural price discovery process.
Post-CLW Outcomes
Liquidity Formation:
The ETH raised is paired with sold ICX to create the ICX/ETH liquidity pool, establishing a strong price floor and ensuring trading stability.
Distribution of ultraLP Tokens:
Participants receive ultraLP tokens proportional to their ETH contributions. These tokens represent their share of liquidity and grant access to staking and yield generation.
Token Scarcity:
Unsold ICX tokens are permanently burned, reducing the total supply from inception and enhancing scarcity-driven value appreciation.
How Participants Benefit
Early Access: Participants gain early entry to the ICX ecosystem by acquiring ultraLP tokens at favorable rates.
Yield Opportunities: ultraLP tokens can be staked in the ICX Ultra Vault to unlock Base Reflection Power and participate in ICX auctions.
Liquidity Ownership: ultraLP tokens represent ownership of liquidity, enabling participants to benefit from future protocol growth and rewards.
The CLW establishes the foundation for the ICX Protocol, creating liquidity and aligning participant incentives from the start.
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