Introducing Bounce’s Initial LP Revenue Offering: Continuous Profit Generation For Participants

Bounce Brand
4 min readJan 8, 2024

In an innovative leap, Bounce Brand introduces the era of Initial LP Revenue Offering (ILO) — an transformative departure from the conventional token-focused approach. Here, participants auction off the fee generation from the token’s AMM Liquidity Pool, translating to a continuous revenue stream. Bagging a percentage in the auction? Congratulations, you’ve just secured a perpetual slice of the Uniswap AMM fees without bothering to clutch the project tokens. As the project generously allocates 90% of its tokens to the LP pool, trading kicks off on Uniswap at a cool 100k USD valuation. Brace yourself for an unprecedented model that not only mitigates the token dump risk but ensures an everlasting flow of profits for auction participants. Welcome to the future of auctions.

Reflecting On Fair Launch Models in Crypto

In the dynamic world of cryptocurrency, fair launch models are crucial, offering transparency and equal opportunity but also presenting significant challenges. These models promote inclusivity and minimize centralization and fraud, yet are susceptible to exploitation and can delay development due to community involvement. Additionally, the absence of barriers increases competition. For projects considering fair launches, a nuanced understanding of these aspects is vital for navigating the industry’s complexities.

The recent surge in Initial DEX Offerings (IDOs) on Bounce has garnered significant attention, highlighting the advantages and disadvantages of projects utilizing the fair launch model for their new tokens. Bounce pioneered the use of a staking auction model with a low Fully Diluted Valuation (FDV) for launches. This approach offers strong initial engagement, yet sustaining the token’s price becomes challenging due to the limited capital raised. Participants in these auctions often intend to sell the tokens once their value surges initially.

Typically, auctions focus on distributing tokens to participants, who profit from the subsequent increase in token price. But what about the possibility of an auction model that can generate continuous revenue without profiting from the project’s token price?

Presenting ILO: Continuous Revenue Generation For Participants

Introducing Bounce Beand’s Initial LP Revenue Offering (ILO), a revolutionary development in crypto fundraising. Diverging from traditional token-based methods, ILO focuses on auctioning rights to fee generation from a token’s Liquidity Pool on prominent platforms like Uniswap. Securing a share in the auction, for instance, 1%, entitles participants to a perpetual 1% of Uniswap’s trading fees, bypassing the need to hold the tokens themselves. This novel approach offers consistent returns for participants while providing projects with stable, long-term support, and mitigates the risk of sudden token sell-offs.

ILO marks a significant paradigm shift in cryptocurrency fundraising. In this innovative model, bidders vie for a stake in the revenue generated by the token’s Automated Market Maker (AMM) LP. This strategy departs from traditional token auctions to a more progressive scheme, where participants gain ongoing revenue streams. Holding a percentage of the auction equates to a perpetual share of Uniswap AMM fees, offering continuous profits without the necessity of holding the project tokens. This method simplifies the process, enabling participants to claim their fees regularly, thus creating a sustainable and profitable revenue source.

Let’s look at an example in a real-world scenario. Suppose a project initiates an ILO on Bounce Launchpad, hosting an auction that generates funds for the LP fee. Subsequently, the project allocates the majority of its tokens, around 90%, to the LP pool, enabling trading on Uniswap at a valuation of, let’s say, $100,000 USD. As a result, auction participants become recipients of ETH derived from trading fees, establishing a tangible link between their participation and continuous revenue streams. This model ensures that profits flow to participants without the need to hold project tokens, fostering a sustainable and mutually beneficial ecosystem.

The advantages of the ILO model are noteworthy. Firstly, participants enjoy continuous profits without the obligation of holding project tokens, providing a distinct edge over traditional models. Secondly, the risk associated with participants hastily dumping tokens is effectively eliminated, fostering a more stable and sustainable environment. The ILO model’s emphasis on long-term benefits aligns with the evolving landscape of decentralized finance, offering a strategic and forward-looking approach to fundraising. In the world of ILOs, participants enjoy continuous profits — it’s like the gift that keeps on giving, minus the awkward “return” moments. No token hoarding required, just sit back and let the fees flow. It’s the crypto version of having your cake and eating it too!

Fundraising Evolved: A New Dawn with Bounce’s ILOs

In conclusion, Bounce’s Initial LP Revenue Offering emerges as a beacon of innovation, offering a transformative approach to fundraising in the crypto realm. The benefits of ILO, including continuous profit without holding project tokens, the elimination of the risk of participants dumping tokens, and enhanced sustainability, position it as a game-changer. In the ever-evolving crypto game, those who dare to innovate, like Bounce with its ILO model, are the ones who shape the future.

“‘With great risk comes great reward.” — Thomas Jefferson

Bounce takes a bold step, introducing a model that not only adapts but propels the industry forward. As we eagerly anticipate the upcoming ILO launches in January, there’s a palpable sense of excitement within the crypto community. Bounce’s pioneering move sets the stage for a new era in fundraising, encouraging the community to explore this innovative model and embark on a journey that promises sustained profits and a fresh perspective on liquidity generation. Unlocking liquidity, reshaping futures — Bounce’s ILOs, where innovation meets opportunity!

About Bounce Brand

Bounce Brand is a prominent decentralized platform dedicated to delivering: BounceBit, an advanced BTC staking chain; Bounce Auction, onchain decentralized auctions; BounceBox, an all-in-one DeFi space empowering customizable DeFi innovations — all tailored for the Bitcoin ecosystem. Committed to harnessing and expanding Bitcoin’s potential through DeFi solutions, Bounce Brand strives to empower transformative growth within the blockchain landscape.

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Bounce Brand

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