Interpretation of the token economics and TGE strategy of Mori Finance, a new player on the LSDFi track

After Ethereum shifted from PoW to PoS, the validators also shifted from PoW mining machine holders to ETH token holders. As of July 17, even though the pledge rate of ETH is currently only 20.3%, with its huge market value, the value of pledged ETH is much larger than other PoS blockchains. Around the utilization of these pledged assets, LSD (liquidity pledge) and LSDFi ushered in rapid development.

Mori Finance is a new member of the LSDFi track. It is currently undergoing testing and is cooperating with Peckshield to conduct an audit. It plans to launch the mainnet after the audit is completed. Recently, Mori Finance announced its token mechanism and TGE rules, which will be introduced below.

Mori Finance's Risk Grading Scheme

Stablecoins have important applications in both DeFi and LSDFi. Curve's crvUSD, Lybra's eUSD, and Raft's R are all examples of LSDFi's application in the direction of stablecoins.

Mori hopes to introduce a stable asset whose price is relatively stable but not fully anchored to the US dollar through LSD. Specifically, Mori can decompose the volatility of ETH into two assets: one is the low-volatility stable asset ETHS (ETH Stable), and the price fluctuation is 10% of ETH volatility; the other is the high-volatility derivative asset ETHC ( ETH Coin), which absorbs the volatility of the underlying ETH except ETHS, which is a perpetual token that is bullish on ETH.

ETHS can be used to provide ETHS/USDC liquidity on Curve to obtain additional mining income. ETHC will never be liquidated, which is friendly to users who want to increase the leverage of ETH. In this way, Mori hopes to meet the needs of users with different risk preferences. ETH can be minted into ETHS and ETHC at any time, and ETHS and ETHC can be redeemed into ETH at any time, and the agreement charges a certain percentage of fees from it. For the detailed mechanism, please refer to our previous article.

Native token $MORI and managed governance token xMORI

Mori's token economy plays an important role in the ecology, and the protocol can also charge from the minting and redemption of LSD.

Mori's native token is $MORI, with a total of 1 million. On this basis, there is also a non-transferable custody governance token xMORI, which is locked by $MORI. $MORI is distributed as follows: 50% for liquidity incentives, 25% for core contributors, 6% for public sales, 10% for Treasury reserves, 7% for marketing, 1.2% for initial liquidity, 0.8% For airdrops.

It is necessary to lock $MORI into xMORI in order to obtain the income and governance rights of the agreement, etc. The rights and interests of holding xMORI include:

• Share the casting and redemption fees of the agreement in LSD;
• Increase the income of holders, so that the interests of token holders are consistent with the interests of the agreement for a long time;
• As a governance token, it determines the future development of the protocol.

The public token sale will be conducted in two rounds

Before the public token sale, Mori did not conduct a private placement, and the tokens of the core team contributors also need to be released linearly within 3 years. The initially circulated tokens include 6% for public sales, 1.2% for adding liquidity, 0.8% for airdrops, and 0.7% for marketing and marketing. The token unlocking mechanism is shown in the figure below.

Mori’s token sale will be conducted in two rounds. (Risk warning: There are risks in cryptocurrency investment. Before making any investment decisions, readers should conduct in-depth research and consider their own risk tolerance.) The first round starts at 1:00 pm UTC on July 20th, one hour before Only for whitelist users (Discord OG members, who can obtain identities by participating in testing or publishing content), and open to all users for the next 23 hours. A total of 3% of $MORI will be sold in this stage, of which 1% will be used for whitelist sales and 2% will be used for public sales. The price of 1 MORI is 0.005 ETH.

The second round will be held after the launch of the Mori mainnet. The time is to be determined. It is also expected to sell 3% of $MORI tokens. If the first round of sales is not completed, then the second round will adjust the sales plan. The $MORI Token Generation Event (TGE) will follow the second sale round.

According to Mori's roadmap, the team plans to start IDO after auditing in the third quarter of this year, and launch the Ethereum mainnet. Later, ETHS will participate in Curve War and support more LSD. Derivatives with ETHS and ETHC as underlying assets are expected to be launched in the fourth quarter of this year. In a Medium article published by Mori on July 13, the mainnet is expected to go live within a month. Currently, Mori’s OG activity is still in progress, and a whitelist location is also provided to testnet users who are really interested in Mori. The snapshot will be taken on Wednesday, July 19, and interested users can participate.