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!
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.
Depending on each ZILO project, ZWAP holders will be granted a whitelist spot which allows them a 5% discount to the tokens provided that they are currently holding a minimum amount of ZWAP tokens. This minimum amount is subject to changes depending on the project.
Tokens will be used to provide initial liquidity for the token, and you will receive project tokens if the ZILO completes successfully. Otherwise, all ZIL committed is refunded to you.
For a ZILO to push through successfully, the total amount contributed during the ZILO must hit a minimum threshold called the Success Threshold (a percentage of the total target amount to be contributed).
If this Success Threshold is not met at the end of the ZILO duration, the ZILO is considered to have failed, and all ZIL contributed (excluding network transaction fees) can be claimed immediately by users.
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.
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 ZIL tokens you have committed during the ZILO.
Check out some tutorials kindly put together by fellow Zilliqans!