Impossible x Pine Protocol Buy-back Protection Program
Hi Penguins,
The purchase period for Impossible IDO #16 Pine Protocol is currently underway! If you have participated in the token sale by staking IDIA or vIDIA, or if you are a whitelist allocation winner in one of our marketing campaigns, now is the time to purchase your PINE allocations!
The purchase period will conclude on 08/02/2023 2:00 PM (UTC), so remember to purchase your PINE tokens before then.
As part of Impossible’s continued efforts to ensure the protection of our community, we are thrilled to announce Impossible has secured a token buy-back protection program (“Program”) for Pine Protocol participants. Only users who participated in Impossible’s Pine Protocol token sale (“Token Sale”) can access the downside protection.
Through our close partnership with the Pine Protocol team, we are confident they will deliver on their protocol, roadmap and vision of becoming the gateway for yield in the NFTfi space. This token buy-back protection conveys the same confidence to all those who have participated in the Token Sale.
The Impossible Buy-back Protection Program Details
1. How do we protect users?
Simple Explanation
- Pine Protocol has pledged, on-chain, to buy-back your PINE tokens at a price of US$0.15 / valuation of US$30,000,000 or approximately 25% from the Token Sale price, subject to the conditions below.
- This means that if you are eligible (meeting the conditions under Q2), you can sell back the amount of PINE tokens purchased during the Impossible Launchpad sale, thus protecting you from potential downside price risk of PINE after 3 months.
Technical Explanation
Under the Program, eligible users may sell back the PINE token, subject to the conditions set out below:
Impossible Finance reserves the right to not activate the Program or run it on OpenSwap, if the market price of the token is expected to be above the buy-back price during the buy-back valid time period.
2. Who is eligible to participate in the Program?
“Eligible users” in this Program are users whose wallet addresses participated in the Token Sale. Under the Program, eligible users can only sell back the tokens, which were bought during the Token Sale and held at the same wallet address used in the Token Sale (“Sale Wallet”) until the Buy-Back Valid Time.
As such, the tokens that have been sold or transferred out of the Sale Wallet are not eligible for buy-back under the Program. For example, if $100 of tokens were bought in the Token Sale and only $40 were held until the Program starts, only $40 can be sold back in the Program. This is to ensure fairness among the strong stakers, LPers, and HODLers of the community.
Impossible Finance and the project team reserve the right to modify the eligibility conditions before the buy-back valid time period, and will notify the community if so modified. Eligible users may contact the Impossible Finance team if they believe there is any error in the number of tokens they could sell back under the Program.
Note that OpenSwap may charge users a small fee to complete the buy-back process.
3. When can I use this?
Subject to the above conditions under Q1
Example 1 — Forgo the buy-back because PINE price goes up
Feb 2023 — Token Public Sale Price = US$0.20
- User Wallet 1 — Buys 100 PINE tokens = net worth US$20
- User Wallet 2 — Buys 1000 PINE tokens = net worth US$200
May 2023 — Token Market Price = US$0.28 (price increased 40% from IDO)
- User Wallet 1 — Eligible to sell 100 PINE at US$0.15 but will forgo the buy-back as the price is US$0.28 = net worth US$28
- User Wallet 2 — Eligible to sell 1000 PINE at $0.15 but will forgo the buy-back as the price is US$0.28 = net worth US$280
Example 2 — Participate in the buy-back because PINE price goes down
Feb 2023 — Token Public Sale Price = US$0.20
- User Wallet 1 — Buys 100 PINE tokens = net worth US$20
- User Wallet 2 — Buys 1000 PINE tokens = net worth US$200
May 2023 — Token Market Price = US$0.12 (price fell 40% from IDO)
- User Wallet 1 — Eligible to sell 100 PINE at US$0.15 = US$15
- User Wallet 2 — Eligible to sell 1000 PINE at US$0.15 = US$150
- Users above lose 25% — avoid losing an additional 15% because they are protected.
4. Mechanism: How can you access the program?
We will be implementing the buy-back mechanism on OpenSwap’s whitelisting limit order feature. OpenSwap was Impossible’s second IDO project, and we are firm believers to continue helping our past and present projects to integrate together to build a stronger Impossible ecosystem.
The OpenSwap feature that allows us to make this program a reality is called “Buyback Queue”. The feature is audited by CertiK, and transparent on-chain for users to see the buy-back protection. You can read more about the mechanism here.
5. Fundraise Custody
- For transparency, 75% of the proceeds of the Token Sale (“Proceeds”) will be held in a multisig wallet protected by both Pine Protocol and Impossible Finance council members to fund the Program. Address may be publicly shared later.
- The remaining 25% of the Proceeds will be returned to Pine Protocol after the sale completion so they can use it to build out their ecosystem.
6. Why are we doing this?
At Impossible Finance, we want to set the tone for what Launchpads should be. We treasure our community, first and foremost. We aim to find the best crypto opportunities for you and at the same time try to protect you against risks.
By reserving part of the Proceeds to fund the Program, we are actually taking the first step in creating something mentioned in our original whitepaper, the SSIDO — a self-sustaining IDO.
While the funds are held in escrow and the team works to deliver on its milestones, they can also be used to earn yield in safe DeFi protocols, allowing for projects to build with confidence and garner support from the community. The community then has peace of mind in knowing that their hard-earned dollars are being put to good work and not just distributed to project teams that could run away with funds. We now have run a few Programs and we believe it’s a good way to make sure all users have less risk when backing those who are BUIDLers.
About Pine Protocol
Pine Protocol aims to become the gateway for real yield in NFTfi and the Pine team’s mission is to build technology that allows for asset-backed financing to be conducted transparently and efficiently on-chain. The protocol is a non-custodial decentralized asset-backed lending protocol that allows borrowers to borrow fungible digital tokens from lenders using non-fungible tokens as collateral. Built with an open and composable architecture, the protocol can be integrated easily with any NFT and NFTFI platform.
Website | Twitter | Discord | Telegram | Medium
About Impossible Finance
Impossible Finance is the go-to crypto investment platform that empowers you with high-quality, fair and accessible crypto opportunities. We simplify DeFi so you can enjoy fairer investing, cheaper trading and better yields through our accelerator, launchpad, and swap platform.
Website | Twitter | Discord | Telegram | Medium
Terms & Conditions:
- Impossible reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
- Only users that have participated in Impossible’s IDO#16 Pine Protocol Token Sale will be eligible for this buy-back protection. Specifically, only KYC’ed wallet addresses that have purchased and claimed PINE tokens on the Impossible Finance Launchpad will be protected.
- Users need to complete their KYC and also be from an eligible jurisdiction to participate in this token sale.
