Moonbeam’s Fantom (FTM) Launch via Initial Liquidity Offering on StellaSwap

4 min readFeb 20, 2022

$FTM is finally coming to Moonbeam! We’re proud to be the first DEX to launch the Fantom ILO, allowing users to bridge their $FTM into the recently launched Moonbeam network.

To celebrate the listing of FTM-GLMR and FTM-USDC, we are organizing the first Initial liquidity offering (ILO) on 22 February 2022 at 16:00 PM UTC. You will get a chance to buy 10% off (discount) STELLA with your committed FTM within the 24 hours window. After the ILO ends, the pairs will be listed and you can be one of the early few to maximize the APR returns!

What is 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 Fantom, 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.

StellaSwap’s ILO will allow users to bridge FTM from Fantom blockchain and commit those FTM into buying $STELLA at a 10% discount. After the ILO ends, StellaSwap will launch 2 Fantom pools for users to earn massive APR returns: FTM-GLMR pool and FTM-USDC pool.

Fantom ILO Details

STELLA Allocated for ILO: 50,000 STELLA
ILO Duration: 24 hours
StellaSwap’s Fantm Bridge Launch: 21 February, 16:00 PM UTC
ILO Date & Time: 22 February, 16:00 PM UTC
ILO End Date & Time: 23 February, 16:00PM UTC
Launch of FTM-GLMR & FTM-USDC Pool: 23 February, 17:00PM UTC

StellaSwap’s ILO Mechanism

For the ILO, StellaSwap will utilize the Overflow model, which facilitates a pro rata capital distribution method and refund mechanism in the event of oversubscription. This simply means that the more FTM you commit to the ILO, the more STELLA you stand to receive, and you’ll be refunded for the remaining FTM that wasn’t converted to STELLA. Participants are free to commit as much FTM as they want, and their STELLA allocation will be proportional to their committed FTM in relation to the overall total FTM committed by all participants. Whatever FTM remains that wasn’t converted will be fully refunded.

Let’s look at 3 scenarios for greater clarity, with a hypothetical simple assumption that 1 STELLA = 1.5 FTM and there’s 50,000 STELLA allocated to the ILO.

Scenario 1: 100% Filled Allocation

In this scenario, the entire allocation of 50,000 STELLA is taken up by users who cumulatively invest 75,000 FTM. If you invested 7,500 FTM, you will get 10% of the STELLA allocation at the price of 1 STELLA = 1.5 FTM, which amounts to 5,000 STELLA tokens. You will not get a refund since all of your 7,500 FTM will be converted to 5,000 STELLA.

Scenario 2: Oversubscription or Overflow (Hence, the name Overflow)

Oversubscription or overflow means that there is an excess of FTM chasing a fixed amount of 50,000 STELLA. If there is a total of 150,000 FTM committed by all users in the ILO and you invested 7,500 FTM, you will get 5% of the STELLA allocation, which means 2,500 STELLA tokens. You will be refunded 3,750 FTM since it is unused.

Scenario 3: Undersubscription

This means that the total FTM committed isn’t sufficient to fill the established STELLA allocation. If there is a total of 35,000 FTM committed by all participants and you invested 7,500 FTM, you will get 5,000 STELLA in accordance to the price of 1 STELLA = 3.5 FTM. You will not get a refund since all of your 7,500 FTM will be converted to 5,000 STELLA.

How Do I Participate in the ILO?

It’s really simple! Ensure that you have FTM on Fantom blockchain and you can start getting ready for the ILO! 24 hours before the ILO starts, StellaSwap will launch the Fantom bridge so users can start bridging their FTM in preparation of the ILO. Once the ILO begins, they can start committing FTM on the ILO page for the next 24 hours!

What is The Raised Funds Used For?

$100k worth of FTM raised will be used for Buyback across a one-week period. This ensures that we can contribute towards maximizing tokenholder value.

Will Tokens “Dump” Due to STELLA’s ILO Discount?

We have decided to reduce the STELLA discount from 20% to 10% in order to protect against selling pressure emanating from the arbitrage. Even if there might be an immediate sell pressure to actualize arbitrage opportunities, the one-week buyback will neutralize the initial selling pressure.

Another of the design decisions that we’re bent on solving is enhancing native STELLA liquidity. A simple way to do it is to 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.