This report examines the ByteMasons OATH Liquidity Generation Event
(LGE), which occurred in February 2022. The OATH Liquidity Generation
Event offered several innovations beyond contemporary LGE models.
ByteMasons attempted to leverage the communities that formed around NFTs
by offering discounts to NFT holders. The OATH LGE also provided the
ability to select terms during the LGE, in consideration of the
different risk profiles of Venture accounts. The data for this report
were obtained directly from a Fantom Full/Archive RPC using
web3.py.
The LGE raised a total of 9,771,967 FTM from 3047 addresses. The LGE saw most of its activity at the start and the end of the event, despite there being no economic difference. Addresses that selected Venture terms were more likely to provide larger amounts during the LGE.
The NFT feature was utilized for approximately 25% of the total LGE volume, in wFTM. The Venture terms were well-utilized, accounting for approximately 30% of the total raise. The distribution of investments yields a Gini Coefficient of 0.854, suggesting the LGE was somewhat whale-heavy.
LGE Participant addresses tended to have transaction counts and wallet balances that would be consistent with human control. I speculate the NFT discount encouraged LGE participants to use well-known wallet addresses that are publicly and conspicuously associated with NFT purchases.
Wallets with higher FTM balances tended to participate in the LGE for larger amounts. Approximately 8 months after the LGE, participants who selected Default terms tended to hold more OATH in their wallets than those who selected venture terms - although venture holders are still vesting.
The primary contract used for the LGE was called
ElasticLGE, and was located on the Fantom DAG at address
0x96662f375a9734654cB57BbFeb31Db9dD7784A7F. We located all
transactions to ElasticLGE and decoded them to identify the
method invoked and the parameters provided. Any address that invoked
buy() or batchPurchase() on the LGE contract
during the LGE event was considered an LGE participant. There were 3047
unique LGE participant addresses. Transaction counts and wallet balances
were obtained for all LGE participant addresses.
The OATH LGE implemented a unique buy() method that
enabled participants to choose their vesting terms at the point of
transaction confirmation. When “venture” terms were chosen, the price of
OATH was reduced and the vesting period was longer. When “default” terms
were chosen, an NFT could be indicated that would obtain a different
discount. If neither the NFT nor Venture options were selected, then the
OATH LGE behaved like typical LGE implementations.
By default, 1 LGE share was priced at 1 wFTM. Venture mode reduced the cost of 1 LGE share to 0.5 wFTM.
During the LGE Event, 5182 buy() and
batchPurchase() transactions to the LGE contract were
confirmed. The first LGE transaction was confirmed in block 31636182 at
approximately 2022-02-21 19:31:51. The last LGE transaction was
confirmed in block 31895988 at approximately 2022-02-24 23:21:39.