Malt V2 Whitelist Allocations
First off, thank you to everyone for their patience regarding this subject. Building our Whitelist, with all of the various factors we needed to consider, was not an easy endeavor. We have taken great care to balance our whitelist to provide benefits for those on it, while also ensuring that our Whitelist would not potentially damage the protocol itself.
To begin, here’s a few words from 0xScotch on which we built the foundations for our Whitelist calculations:
“For transparency, here are some things we are considering around whitelist:
1. People who were reimbursed in v1 must all get an allocation. We promised this and must follow through- but it’s also just the right thing to do.
2. People who were in v1 but didn’t lose money are OG supporters, and we are incredibly grateful that they still want to be actively involved. We don’t want to punish them for not losing money, so we would like to give them an allocation on the whitelist too.
3. We don’t want our whitelist to just be v1 people. Lots of new people have found us since then, and we don’t want to leave them with zero chance of a whitelist spot. We want to run contests and events where anyone can win an allocation.
4. A personal desire for me is to give the team who have been so unbelievably helpful an allocation as well, as a thank you from me and the community for their tireless work.
5. Finally, we have to consider the total size of the whitelist. Malt yield is based on demand for Malt. If we give everyone who wants in on Malt an allocation, then we are incrementally removing dollars from the demand pool. If we do that too much we entirely dilute the demand, and Malt yield will suffer — directly punishing everyone on the whitelist. Think FEI launch for an example of how this plays out.
Its our job to balance all these things out in a way that finds the best balance between our desires, and the given trade-offs. Our current thinking is to limit the total whitelist to a maximum of $2M. This should give enough scope to offer allocations, while also not diluting demand so much as to destroy the yield.”
We want to assure our community that the last thing we wanted to create would be an unfair protocol, where whitelist-allocated members would get the chance to “dump” onto all of the investments made by new members of the Malt family. We wanted our whitelist to provide rewarding benefits, but not overwhelming levels of benefits that could harm Malt overall. With that balance in mind, here are the key details and benefits of the Malt v2 Whitelist:
- You are able to pledge DAI up to the whitelisted limit for your specific wallet. Your pledged DAI will be converted to LP without any slippage, so you will have exactly equal parts DAI and Malt in your LP from the moment it’s created.
- You will be bonded before the protocol launches, allowing your LP to begin earning yield from the very first public purchase of Malt and the first use of the stabilizer.
- Since you are investing from the very first Epoch, the APR smoothing will not yet be active, and this will significantly increase your rewards for the initial epoch. Malt will utilize an “APR Smoothing” to help support the protocol and prevent significant changes to the APR- but this smoothing will not activate until data from the first Epoch has been gathered. For that first Epoch, with no APR smoothing in use, a higher share of the rewards go directly to LP holders.
So, down to the Numbers:
We had 1,944 Addresses that received compensation during the reimbursement process of Malt V1, and of those, 705 showed interest in V2. For those wallets that both received reimbursement in v1 and registered interest in v2, their Whitelist allocation will be 100% of what their outstanding loss in v1, with a minimum allocation of $1000 and with a maximum of $5,000.
For Example:
- If a person lost $300, their allocation would be $1,000, the base amount.
- If a person lost $3,500, their allocation would be $3,500, or 100% of their v1 losses.
- If a person lost $10,000, their allocation would be $5,000, as they would have hit the $5,000 cap.
The reason behind these upper and lower limits was to both enrich our active members, but also to avoid giving excessive whitelist allocations to a few specific wallets that lost more than $5,000. If we raised the upper limits on our Whitelist allocations, that would potentially have made our starting liquidity too large (see 0xScotch’s 5th point on our whitelist foundations), while also potentially allowing for these wallets to dump. We also selected these limits in order to give the fairest allocation to everyone (For transparency, 91% of wallets had losses of less than $5,000 after reimbursement concluded).
The other 1,238 addresses that were involved in v1, but did not register their interest in V2 through our contract, will still have a Whitelist allocation prepared for them in the amount of $500 USD (the same allocation everyone whitelisted back in for v1 received at its launch).
On the other side of the (bit)coin, we also wanted to give Whitelist allocations to everyone that was part of V1 but walked away with profits or broke even, but then registered their interest with v2- we appreciate you sticking with us even when there was no immediate gain for doing so. From that group we had 158 addresses that registered their interest in v2, and they will also be whitelisted for $1,000 (Following 0xScotch’s 2nd Whitelist foundation).
For all of our amazing community, we will continue to run giveaways and contests with prizes including Whitelist allocations of $1,000. We intend to keep running these contests and giveaways until the launch of V2, and for those already on the whitelist, these new allocations can be added onto your prior allocation. Through this, even if you were already whitelisted for the maximum $5,000 allocation, you could potentially earn an even greater allocation!
After our final contest but prior to our official launch, we’ll share the allocations list to the public with shortened wallet identifiers. This will protect the privacy of our users, while allowing everyone to see their final allocations! With that, good luck to all of our Malters out there, and don’t forget to keep participating in our Discord, Telegram, and Twitter events!
Much love
Team Malt ❤
