HELI Community Lockdrop

The first ever Community Lockdrop on Hedera concluded. This page is for future reference only.

We want to say a big thank you to every single of our lockdrop contributors. During the Community Lockdrop phase (16-23 Feb 2023), the HeliSwap community has decided to contribute over 15 million HBAR that have been matched with 20 million HELI tokens. This resulted in a launch price of $0.063115689 for the HELI token. All in all it can be said, that the first ever lockdrop that took place within the Hedera ecosystem was a success.

We value our community and those that want to contribute to the growth and success of HeliSwap. As such, we also see the HELI token as an integral part of HeliSwap, that will grow together with the platform as we actively drive value to it. But first, we want to launch the token - through a community focused lockdrop approach that rewards our early supporters, while helping to bootstrap early liquidity for the HELI token. Here is how we are going to do it:

Simply explained, we give out a large amount of HELI to anyone who deposits their HBAR on the lockdrop page. We then merge the pre-announced amount of HELI (20,000,000) with the received HBAR to create an HBAR <> HELI Liquidity Pool. ALL LP tokens that are generated throughout this process will be redistributed to participants and vest linearly over a 3 months period. This mechanism helps HeliSwap to create a large initial HBAR <> HELI pool with deep liquidity and allows for a community driven natural price discovery process. In a further step, your already vested LP tokens can then be used to earn additional token rewards by staking them into the HELI <> HBAR yield farming campaign. (no financial advice). It is up to you, what you do with your vested tokens.

Step 1: The Lockdrop Pool

  • 20,000,000 HELI tokens will be allocated to a so called "lockdrop pool".

  • Participants (you) may then decide to lock up their HBAR while the lockdrop-deposit window is open.

  • The entire lockdrop process lasts for 7 days. During the first 5 days, anyone may deposit or withdraw their HBAR at will and as many times as desired.

  • On days 6 & 7, no more deposits will be accepted. You may withdraw up to 50% of your investment on day 6 and a linearly decreasing amount on day 7 (50%-0%).

  • Each participant can only withdraw once after day 5 has ended.

On the Lockdrop website, you will see the total contributed HBAR and what share of HELI you would be receiving at the end - while also showing an indication of the HELI price after launching the HBAR <> HELI pool.

Step 2: Allocation and LP token creation

  • Depending on your share of the overall HBAR contribution, we allocate a proportional amount of the 20,000,000 HELI to your position. You can see the overall amount on the vesting page throughout the entire week.

  • We then take the HBAR and HELI and turn them into an LP token that will be used on the HBAR <> HELI pool to bootstrap liquidity.

  • Over the next 3 months, your LP tokens will vest linearly and you can retrieve them on the same page as you originally deposited your HBAR. The amount of LP tokens you will receive will be directly proportional to the amount of HBAR you have contributed in relation to the total amount of HBAR contributed.

Note: Since swaps happen during the lock period, the asset proportions within your LP tokens may shift and you may not receive the exact same amount of HBAR back. Depending on swap directions, you may receive more or less HBAR and more or less HELI. This is how all LPs work.

Step 3: Claiming your vested LP Tokens

  • During the 3 month linear vesting period, you may decide to vest and redeem portions of your allocated LP tokens.

  • Those redeemed LP tokens are yours and you have full ownership of them.

  • To make it easy for you, you can also directly stake your claimed LP tokens into our Yield Farm and benefit of the HBAR <> HELI APRs (no financial advice).

Note: By participating in the Lockdrop, we also include you in our Claimdrop token distribution, where we distribute tokens to reward users. More on that in this section


Why would I deposit / withdraw HBAR?

You should only participate in a lockdrop with an amount that you are comfortable with. We allow you to deposit and withdraw HBAR as many times as you want, as the overall HBAR contribution amount determines the initial price of HELI and how many LP tokens you will receive (with the underlying assets being HBAR and HELI). Withdrawing or depositing more HBAR during the first 5 days allows you to adjust your position if you desire to do so.

What if I deposit my HBAR but then the HELI contribution and HELI price are not in line with my expectations?

During the first 5 days, you can simply withdraw your contribution (in parts or entirely), or, if you think it improves your position, may also deposit more.

How many HELI tokens will I get?

This depends on a few factors.

(1) Your initial HBAR contribution compared to total HBAR contribution (in %)

(2) The actual swap activity on the HBAR <> HELI pool for your unvested tokens, which may affect the allotment of underlying HBAR and HELI assets for LP tokens when being claimed

Is there a minimum amount of HBAR I need to lock-up to participate?

No, there is no minimum. Anyone can participate.

Is there a minimum of HELI tokens I can earn?

There is no minimum.

Will I get my HBAR back after the 3 month vesting period?

You will receive LP tokens where the underlying assets are HBAR and HELI. These LP tokens are vested over a 3 months period. The amount of HBAR you can get back via breaking up your LP tokens, depends on various factors like for example the amount of swaps that happened, or the prices of both assets. Depending on these factors your HELI and HBAR positions may have changed.

It is possible, that you receive more or less HBAR than you contributed initially, but overall you do not just receive HBAR, but also the HELI we associated with it.

You can break up your LP tokens to retrieve the underlying HBAR and HELI tokens.

How does the 3 months linear vesting work?

Linear vesting over 3 months means that more of your LP tokens will be claimable each and every day (or every second to be precise).

To provide an example, let us assume that we are talking about 100 Days vesting (rather than 3 months):

Linear vesting would mean, that each day, 1% of your LP token allocation vests (1 Day/100 Days). This means, that each day you have vested another 1% available to be claimed.

After the entire 100 days have passed, the entire amount has vested and is claimable.

Will I earn APRs on my provided LP?

The locked LPs are not staked inside the Yield Farm. As your tokens vest, you can use the claimed LP tokens to stake them into the Yield Farm directly and start earning APRs.

All fully vested LP tokens are treated as any other LP token on the DEX and will earn the corresponding APR if you actively put them into the Yield Farm.

Why is a deep liquidity for the HELI token important?

Deep liquidity pools are essential for DEXes / Automated Market Makers to function properly. If a pool does not have sufficient liquidity it can create a large price impact when traders buy and sell assets. These can lead to capital inefficiencies and impermanent loss.

In the case of the HELI token this means that the deeper the liquidity pool for the HELI token the more capital efficient it will be and the less price impact trades will have on the asset price. Deeper liquidity and smaller price impact means that the risk of impermanent loss can also be reduced.

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