👥LGE for Investors
Last updated
Last updated
A LEAP from SmartDeFi is quite different from any other presales you may be used to.
For example one notable difference is the fact that it's more secure - the system will take the BNB invested, place it in LP tokens, then it will lock LP tokens in vesting. It will only unlock them in batches, in time, based on a vesting schedule, this way preventing people from dumping on the market. Make sure that the developer has placed a large % of the supply into LEAP in order for this to work.
Also another key feature is the fact that when the LP batches do unlock and user claims their share, the system does not allow the user to take the SD tokens out of LP and then dump on the market, instead the system burns those SD tokens, thus ensuring the SD to BNB ratio in the LP pool remains the same and so the price does not drop when users take out profits via their shares.
You can read more about it on the LEAP Fundraising page, for now let's proceed with the guide.
In the main menu on FEGex.com click on "Presale" tab and now you'll be presented with 4 categories populated with presales in various stages called Live, Upcoming, Completed and Failed. For your current purpose you'll be interested in the presales in the Live category, as you can only join a presale that's already started, so clicking on the Live button will load all the presales currently running. To see more info about a presale you will click "Open LGE" on the presale you are interested in. You will now be presented with all the information possible about this presale, all in the hopes that you will read it properly in order to make an informed decision.
Think long and hard and pay close attention to all the settings the project has chosen for the presale, as it can make all the difference between a solid project with a future ahead of it and a project whose only intention is to steal your money. On this subject, the two most important settings you need to be wary of are "Supply for LP" and "Dev share". Both these and all other settings are explained in the drop-down menu below if you'd like to educate yourself on the subject, which we strongly recommend you do, before investing in anything.
While you're looking at the information for a presale, If you like what you see and would like to invest in it, you can click on the "Select" button and pick the coin or token you'd like to use in order to invest. Normally you'd pick BNB (or ETH if on Ethereum), however note that you can actually use any coin or token in your wallet to invest. For example you can invest USDT or even FEG and the system will auto-convert it to BNB and then place that BNB into the presale fundraiser. Once you've decided on the coin and the amount you wish to invest, just click on "Enter presale" and accept whatever approvals your wallet app asks you to in order for the transaction to execute.
If for some reason you wish to exit the presale before it ends and recover your money, you can do so. Simply go back to the presale, click on "Open details" and go where it says "Exit presale". This will send your investment back to your wallet in the form of wBNB, regardless of the coin you used in your initial investment, be it BNB, or USDT, or FEG, or anything else. If you exit a presale and then change your mind, you can enter that presale again but you may only do it one more time and that's it, after that the system will block you from re-entering if you exit yet again.
You can exit a presale whenever you wish, up until the moment the presale ends
A presale can end in 3 ways and this will also affect the way you can recover the funds invested in it.
If the presale was completely successful and managed to gather all the BNB needed, then the presale will end at the exact moment that hardcap is reached, regardless if this happens barely 1 day after the presale started and the initial time limit was set for another 60 days. At any point after the presale ends you will need to go to the Presale page on FEGex, in the "Completed" category, open your specific presale and click on "Enable shares" button in order for all investors to be able to start claiming their shares based on the vesting schedule the project initially set up for this particular presale. Note that once this button is activated it will stop showing up for all other investors, which is ok. Now you will notice a button called "Claim shares". In order to claim the entirety of your currently unlocked share simply type 100 (as in 100% of the share) and click the button. This will cause your unlocked share of the LP tokens to be burned and: - for the SD/BNB pair the SD tokens will be burned and you will receive the BNB they were paired with, plus the BNB for the asset backing for said burned SD tokens - for the SD/FEG pair the SD tokens will be burned and you will receive the BNB for the asset backing value, plus you will receive the FEG tokens in your wallet to do with as you wish.
Note: The SmartDeFi protocol works best with 1e18 decimals types of assets in asset backing. The tokens with asset backing that has less than 15 decimals will not claim the asset backing portion during Claim Share. LGE participants do get the share of liquidity as intended in this scenario and those types of tokens has full SmartDeFi functionality, only the asset backing claim during Claim Share from LGE can be impacted by the decimas of assets in asset backing.
The SmartDeFi Protocol allows a change of asset backing after LGE completion, if project owner chooses to do so. If project changes their asset backing from 18 decimals asset to less than 18 decimals after LGE completion the LGE participants will not be claiming asset backing portions during LGE claims but will continue claiming liquidity portions.
If for some reason you come say 2 years after the presale is ended, basically all of your shares are unlocked as the vesting schedule is long ended by now, however you still cannot claim everything at once. There is a hardcoded limit of a minimum of 24 hours cooldown between claims. This way the system ensures the LP size is not heavily affected if someone with a very large share of the total LP comes and tries to take it out all at once, after the vesting ends.
Once the presale's time limit is reached and it has managed to gather the amount needed for softcap, it is considered the presale is successful and will be placed in the "Completed" category. At this point anyone (investor or not) can come in this menu, click on "Open details" and then in the new popup menu they can click on "Force end presale". Once the presale has been ended by an user, the dev or an investor needs to click on "enable shares" to let the investors claim their shares from the LP, based on the schedule the dev set at the start. Note that once this button is activated it will stop showing up for all other investors, which is ok. Now you will notice a button called "Claim shares". In order to claim the entirety of your currently unlocked share simply type 100 (as in 100% of the share) and click the button. This will cause your unlocked share of the LP tokens to be burned and: - for the SD/BNB pair the SD tokens will be burned and you will receive the BNB they were paired with, plus the BNB for the asset backing for said burned SD tokens - for the SD/FEG pair the SD tokens will be burned and you will receive the BNB for the asset backing value, plus you will receive the FEG tokens in your wallet to do with as you wish
The presale will automatically be moved in the "Failed" category if the time limit has been reached but it did not manage to gather enough funds to reach the Softcap minimum limit. At this point any investor can click on "Open details" and then in the popup menu find the "Abort presale" button. Once that is clicked and the transaction executes, the button will disappear for all other investors, which is ok. You will now be presented with the "Exit presale" button, clicking this will cause your presale funds to return back into your wallet, in the form of wBNB, so now you've recovered your money.
This option is very useful for people who wish to lock their LP tokens instead of claiming them. For example, in the case of the dev share, the dev can choose to lock their LP tokens in order to give a better sense of security to the project investors, in the sense that they know the LP will not become thin because the dev cannot burn their LP share, as its locked using this option.
When you become an investor into an LGE-style presale, you essentially become a liquidity provider, so what does this mean for you ? Say you've invested into an LGE where, to make it easy, your share of the entire liquidity pool is 50% of the pool and your share is in the form of 100 SD tokens and 100 BNB when the presale ends at hardcap. Now when that project launches and people start buying tokens, they will buy said tokens from YOU and whoever holds the other 50% of the liquidity pool, because you are the liquidity providers. Let's make a simple exercise: - just say someone comes and buys 50 SD tokens and pays for it 50 BNB for it - this means now the entire liquidity pool will hold 150 SD tokens and 250 BNB - your share would now be 75 SD tokens and 125 BNB, so you just gained more BNB from a sale, this is how liquidity works, you gain more and more BNB from people buying from you
Every trading platform has inbuilt trading taxes for everything that happens under their roof, and Pancakeswap and Uniswap are no different, this means every trade done there gets taxed X% ontop of whatever other tokenomics that particular token being traded has. There are also vastly different taxations on these platforms, where normally liquidity is stored, but for example in a 0.25% tax pool, the people who provide the liquidity receive 68% of said 0.25% so they receive 0.17% of every trade done inside the pool where they provide liquidity. Now that 0.17% gets shared among all people who provide the liquidity in that particular pool. So each liquidity provider gets a portion of that 0.17% based on how much is their share of the entire liquidity pool. From our previous example, if you hold half the liquidity pool, that means you get 0.085% of the bonus income from these taxes, which may not seem like much, but trust me, when we're talking about volume of hundreds of thousands of dollar per day, it adds up quick.
