Feb 28, 2024 3 min read announcement

Liquidity Bootstrapping Pool by Shutter DAO 0x36 Has Closed - The Numbers

The Liquidity Bootstrapping Pool (LBP) deployed by Shutter DAO 0x36 on the Fjord Foundry platform has concluded, a significant milestone for the DAO. The LBP has successfully raised 8.31 million USDC, which is a considerable accomplishment in acquiring liquidity and engaging with the community.

LBP Overview and Outcomes

The LBP had a few outlined goals:

Raise Liquidity Collateral of $2,000,000 - $5,000,000 USDC
Token Price Discovery
Set Up for Healthy Liquid Markets
Token Distribution & Shutter DAO 0x36 Decentralization

The Liquidity Bootstrapping Pool (LBP) lasted four and a half days. The starting balance was 40,000,000 SHU tokens and 100,000 USDC, setting a solid foundation for the liquidity bootstrapping process. The total raised of 8.3 million USDC exceeded the estimated goal of 2 million USDC by a significant margin, demonstrating high confidence and interest. The LBP saw broad participation with $12.01 million in volume from 1,996 participants, averaging 4,158 USDC per participant. This broad engagement is indicative of a diverse and active community. The average purchase price of 0.222 USDC per SHU token, with the starting token price at 0.247 USDC, suggests effective price discovery and market valuation through the LBP process.

Next Steps and Community Updates

After the closure of the LBP, contributors of Shutter DAO 0x36 have announced steps to maintain the momentum and take advantage of the event's success. These steps include:

Market Making and Liquidity Pool: The provision of a grant to Artis as a post-LBP market maker and the community's decision to fund a SHU/USDC liquidity pool on Uniswap V2 are strategic moves to ensure healthy liquid markets for the SHU token. The initial funds allocated to Artis, which amount to 4 million SHU and 500,000 USDC, aim to provide a stable trading environment and facilitate further token distribution.

Trading on Uniswap: The SHU token began trading on Uniswap V2 at the same price as the LBP's ending price was. This move promotes continuity and stability in the token's market valuation.

Community Proposals: Further proposals to increase liquidity demonstrate Shutter DAO 0x36's ongoing commitment to decentralization and community governance. These proposals determine the possible addition(s) of liquidity to the Uniswap V2 pool.

*Unlocking of vesting schedules, theoretical circulating supply*

Analysis and Implications

The successful execution and outcomes of the LBP have several critical implications for Shutter DAO 0x36. Firstly, the substantial funds raised and broad participation in the LBP position Shutter DAO 0x36 well in the market. This gives them sufficient resources to pursue their strategic objectives and further their mission.

Secondly, the active involvement of community members through purchases and voting on proposals indicates a high level of engagement and support. This level of community engagement is essential for the DAO's long-term success and decentralization efforts.

The recent addition of new token holders from the LBP and those who have claimed their tokens from the genesis allocations has increased the diversity of the number of holders. This, in turn, has made the governance process more accessible and robust. The Shutter DAO 0x36 community members play a vital role in the governance process by actively participating in the creation of new proposals and voting on them. This helps drive Shutter's vision and mission forward.

Finally, the successful LBP and subsequent initiatives for market making and liquidity provision lay a solid foundation for future growth. These efforts will likely attract interest, further expanding the community and enhancing the project's visibility and impact.

Conclusion

The Liquidity Bootstrapping Pool by Shutter DAO 0x36 is a significant milestone for the DAO, paving the way for further expansion, community involvement, and decentralization. The successful fundraising, strategic efforts toward market stabilization, and active community participation demonstrate the DAO's strong potential and dedication to achieving its long-term goals. In conclusion, this achievement underscores the project's solid prospects and commitment to its vision.

Stay tuned for more updates, follow Shutter on X, and join the Shutter Forum!