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eggman 🔵
@eggman.eth
gm all, given some recent rug-related events, I'm here to give my take on a long-pondered question; How should devs/founders sell tokens in their own project? Firstly; if you've not got 6+ figs in LP (MINIMUM), it shouldn't be via market sells. Even then, it STILL shouldn't be via market sells imo. Here are two (legitimate & chart-saving) ways to exit positions; 1) v3 liquidity pairs; place your stake into a v3 liquidity pair that converts into ETH as the price increases. Works like setting a limit order, and helps buy slippage to boot. Important not to over-allocate here as it can anchor the price (buys stop moving the chart), or having too much in there can act as a liquidity rug. 2) Bonds. Similar to the above, but usually managed. QuickSwap & ApeBond are two providers - they essentially offer your tokens OTC at a minor discount and have them vest over time, preventing arbitrage rektage. If you MUST market sell; limit price movements to a maximum of 0.5% impact per day (during positive action).
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Pedro
@pedrowww
Why not use your token allocation as collateral to borrow against? If you set a low enough LTV, you demonstrate trust in your project. If you don't pay back your debt, your collateral gets transferred to your lender, without dilutive event. PWN.xyz does exactly this: - custom lending terms - fixed rates - time-based liquidationj
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eggman 🔵
@eggman.eth
I think this is doable for high TVL projects, but on low TVL projects (likely reliant on fully on-chain pricing w/o an oracle), you could flash-loan liquidate everyone with a couple of eth
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Pedro
@pedrowww
Not if you don't rely on oracles and price-based liquidations.
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eggman 🔵
@eggman.eth
What else is there to rely on for a low-cap that's only available on-chain? Could run with a smoothed moving average, but then the platform itself is liable to get ran-sacked as it'd allow for under-collateralized loans.
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Pedro
@pedrowww
I see what you mean. Forgot to mention that I'm talking about P2P lending. There are no pools so only the lender carries the risk of ending with an under collateralized loan. But since they're free to set their terms, they could mitigate the risk with low LTV and shorter loan durations
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