Genesis Pools & How They Apply to the Launch of the Protocol
Many prior DeFi protocols have used Genesis Pools. But what is a genesis pool?
Think of it as a “seed” investment into a company, but for a protocol. Essentially, you trade a Layer 1 or Stablecoin “store of value” for the new token in question.
Stablecoins or Layer 1s are used due to their inherent store of value, though any token may be used (Mythic X will use $USDC on Matic).
The “price” at which you trade the stable/L1 for the new token is set by the protocol and dependent on the tokenomics of each specific protocol. Upon initiation of the swap, the protocol is “kickstarted” and the utility of the protocol may begin.
Genesis Pool & Startup Process for Mythic X.
Effectively, the genesis pool and startup process will look as follows:
1. $USDC for $MYTH: You deposit $USDC for $MYTH in the Genesis Pool. $MYTH will have a specific conversion rate for $USDC (tba). This will be advantageous for early users of the protocol, as the price of $MYTH will appreciate due to limited supply in the beginning
2. $MYTH will then be staked to earn $FORTUNE. This process allows quests to begin, and travellers will start to earn $FORTUNE and kickstart the questing process. Through this process, the protocol will receive $USDC and provide $MYTH to early investors.
What will happen to the $USDC invested into the pool?
• 80% will go into the supporting the protocol — marketing, growth, Initial LP • 10% will go to the Operating Fund
• 10% will go to the Protocol Fund
The actual number of tokens and tokenomics will be announced when we get closer to protocol launch.