How will tokens be distributed? There will be no pre-sale or sale for the token. Blackswan Tokens will be distributed through a LBP (Liquidity Bootstrapping Pool) on Balancer in order to start the project off with liquidity in the Blackswan Fund and in the $SWAN liquidity pool on Balancer.
Why would I provide liquidity and participate in the Blackswan Lake instead of just holding the token?
While we do expect speculative traders to enjoy trading $SWAN due to its unique expected price action, a majority of $SWAN users will find better hedging protection by participating in the Blackswan Lake in order to receive benefits from the Blackswan Fund during periods of contraction. Blackswan Lake rewards will be extremely aggressive to incentivize the purchasing of $SWAN tokens by users trying to join the Lake.
Why does the supply of Blackswan Tokens increase when above equilibrium liquidity?
$SWAN supply increases during periods of high liquidity to incentivize growth of the token regardless of the stability caused by the high liquidity of the token. It may be difficult for large swings in price, so supply expansion helps supplement market cap growth and wealth for users.
What happens if the Blackswan Fund runs out of money?
The Blackswan Fund reward calculation is designed to never run out of stablecoin by giving exponentially less stablecoin over time the longer the Token stays below equilibrium. When demand returns for the utility of the Blackswan token as a hedging tool and equilibrium is surpassed once again, then the Blackswan Fund will begin to refill.
How does the Blackswan Fund get stablecoin and Blackswan tokens?
During periods of high liquidity, a percentage of Blackswan token supply expansion is sent to the Blackswan Fund, where it is slowly sold over time into stablecoin. Due to the high liquidity, this will cause minimal price impact and is similar to an insurance premium that is slowly paid over time in order to stay safe during periods of uncertainty.
The longer the token sustains high liquidity, the larger the Blackswan Fund will get.