MATIC ILO 167% Oversubscribed, $100k STELLA Buyback Within 7 Days

3 min readFeb 4, 2022

The first Polygon Initial Liquidity Offering (ILO) on Moonbeam has successfully ended, with an oversubscription rate of 167% in just 24 hours! A total of 141,262 MATIC, with an approximate value of $223,193 USD, was committed towards the ILO. The Polygon ILO was the first of its kind in the recently-released Moonbeam network, which represents the first and biggest parachain on Polkadot.

We want to thank everyone that has participated in the first MATIC ILO on StellaSwap! 🚀 Users can claim their STELLA immediately and start generating healthy APR returns in the MATIC-STELLA farm, which will be released alongside MATIC-GLMR farm an hour after the ILO ends.

What is an ILO?

Initial Liquidity Offering (ILO) is a novel mechanism to facilitate liquidity towards the newly-launched Moonbeam network. Being the first to launch on Moonbeam, StellaSwap is one of the leading DEXs with the main aim of attracting liquidity towards Moonbeam. With an ILO, liquidity and capital from other blockchain networks — such as AVAX, Polygon and more — can easily be accumulated in Moonbeam network, facilitating more efficient market pricing that will ultimately mean better prices of tokens for end users.

100k STELLA Buyback for Community Programs

$100k worth of MATIC raised will be used for STELLA buybacks across a one-week period. The progressive buyback structure allows for market stability in the next week. This ensures that we can contribute towards maximizing tokenholder value.

The rest of the funds raised for MATIC will be accrued to the Treasury. Since StellaSwap was launched under a Fair Launch model, there is no presale, private sale or investor allocation, ensuring that emissions are geared wholly around incentivizing the community. In order to maximize tokenholder value for the long-run, StellaSwap must accrue funds to the Treasury to grow the ecosystem and effectively manage market conditions, which include engaging in buy-backs to reduce token supply, establishing incentivization programs (e.g. Airdrops) that does not contribute to excess inflation, as well as reinvesting back into the ecosystem.

Design Decision Behind ILO Model

One of the design decisions that we’re bent on solving is enhancing native STELLA liquidity. A simple way to do it is increase the emission rate of native-STELLA LP farms. However, that represents a superficial way that is focused on a short-term fix since increasing emissions leads to stronger selling pressure and value dilution. What we focused on was calibrating variables to attract ‘new money’, rather than existing funds in Moonbeam. Therefore, we settled on incentivizing new money via an ILO which facilitates direct investments into STELLA token itself, and thereafter maintaining the incentive of staking through high initial APR (due to low TVL at first). This dual approach would create a higher ‘stickiness’ within our system, therefore boosting tokenholder value.

About StellaSwap

StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the DeFi world. Users can swap, earn, yield farm, bridge assets, explore new projects and engage in NFT trading all from a single unified platform. StellaSwap’s products are structured in such a way that facilitates decentralized governance of STELLA holders, while continuing to innovate on the collective foundations by design.

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