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Participate in ZILO
The liquidity providing service for the latest tokens in the Zilliqa ecosystem.
ZilSwap Initial Liquidity Offering (ZILO) is an on-chain service where ZWAP holders can participate in providing liquidity for the latest tokens on ZilSwap, before they've even been launched!
Participating in ZILO
Read the section below to understand (i) how you can take part in a ZILO, (ii) how your committed tokens will be used, as well as (iii) what you will receive after participating in a ZILO.
How to participate in ZILO?
ZILO
What you need to do
Before
During
While the ZILO is LIVE, commit ZWAP and ZIL tokens in a 30%-70% ratio to participate at zilswap.io/zilo
Note: For the ongoing EnviZion ZILO, commit ZWAP and ZIL tokens in a 10%-90% ratio.
After
(ii) The ZWAP/ZIL tokens which you've committed but were unspent (if any).
Note: In order to view the newly allocated token on ZilPay, please add the token by its token address.
What happens to the tokens I commit during ZILO?
- ZIL tokens — 70% of the total allocation — will be used to fund development work and provide liquidity for the token.
- ZWAP tokens — the other 30% of the total allocation — will be burnt forever by ZilSwap. e.g. If a $1M allocation is raised, $300K worth of ZWAP tokens will be burnt. Burn address:
zil1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq9yf6pz
Unlike other DEXes where you have to commit 2 token types to receive an LP token to participate, this design — of committing ZWAP and ZIL tokens directly — will not put you at risk of Impermanent Loss (IL).
What is the “Overflow” method?
The more you put in, the more you will get. Anything that did not get spent will be returned to you after the ZILO ends.
In the “Overflow” method, users can subscribe as little or as much as they wish to the ZILO. The final allocation will be calculated based on the following:
Allocation % = Amount of funds a participant commits to the ZILO / Amount of total funds committed by all participants to the ZILO
Users will receive any leftover funds when they claim their tokens after the ZILO.
Calculation illustration different ZILO scenarios and outcomes.
Be mindful that it is also possible to not receive any tokens at all: If you commit too small an amount compared to the total amount committed by other ZILO participants, your contribution may become negligible and do not qualify you for any of the new tokens sold. However, do not worry as you will still be able to reclaim all ZWAP and ZIL tokens you have committed during the ZILO.
What happens if a ZILO does not reach the amount targeted?
For a ZILO to push through successfully, the total amount contributed during the ZILO must hit the minimum 25% threshold (25% of the total amount to be contributed during the ZILO). If the threshold is not met, all funds contributed — less the transaction fees incurred — can be claimed back at the end of the ZILO.
Video tutorials
Check out some tutorials kindly put together by fellow Zilliqans!
▶️ Video: What is ZILO?
▶️ Video: How to ZILO?
Last modified 1mo ago