🔒Liquidity Lipgloss : The $VV Token Airdrop Report🔒

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About the $VV tokenomics thus far

Violet Summer

By Violet Summer

BY VIOLET SUMMER

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October 13, 2022

OCTOBER 13, 2022

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Last updated December 19, 2022

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"Liquidation Sale everything must go," that's what our new $VV token holders have been doing according to the transactions on the FLOW blockchain.


It's been a wild ride, and we've only been live on the FLOW blockchain mainnet for a month. Flow is a layer one blockchain with its own set of protocols and programming language called cadence. It also has its community and is home to NFT projects like Crypto Kitties and NBA Top Shot. FLOW is one of the first blockchains to be created out of the need to control its digital collectibles. It is semi-centralized. You can upload your contracts for a minimal gas fee. Still, getting listed on popular wallets and decentralized exchanges or even inputting a custom logo on the block explorer called Flowscan is a corporate process. We've had to submit various google forms and email random people to create space for the Violet Verse. 


We didn't know what we were doing regarding $VV liquidity pools, but we've gotten the hang of it now that we got our feet wet on our first interactions. It's about learning to test the deep waters and finding new ways to grow your savings. 


And remember—this is a bear market! Degenerates worldwide are rug-pulling, scamming, and swapping at every opportunity. The US feds just raised their capital rates by a quarter this week! 


Read our Web3 Glossary


Liquidity pools are a great way to grow your savings.


There are three things you should know about liquidity for $VV. Before understanding $VV liquidity and how it is maintained, we must first discuss the concept of liquidity pools in the decentralized finance industry. Liquidity pools are the backbone of the decentralized finance industry. It's also an advanced strategy for Defi traders. If you're a pro at trading NFTs, it's time to explore the rabbit hole of blockchain and ERC-20 tokens.


The concept is simple: you put your token into a pool with others, and everyone gets interested. It's like a group savings account, but you can pull out at any time if you need to take money out or need cash for spending purposes.


Liquidity pools are when pairs of tokens come together to create value. Anyone can make the "pairs" if they have the contract address. And the incentives for throwing your "tokens" into pools are great. If you are the first Defi trader to create a pair, you can potentially earn interest on future amounts deposited in the "pair" initially created! Secondly, based on the decentralized exchange, their governance structure can offer users high-interest rates on stable coin-like pairs. It's like a group savings account, but you can pull out at any time if you need to take money out or need cash for spending purposes. 


And they're not just suitable for people who want to save—they're also great for speculators who want to make money by taking advantage of arbitrage between two tokens. For example, if you think that $VV will go up in value relative to $XYZ, you could buy $XYZ with $VV and hold it until the price difference goes away.





Interacting in this type of environment is where decentralized finance starts getting interesting—you're gathering information about how markets work and how your money can go from 100 to 30 in seconds! The rollercoaster ride has been quite educational. 



Here's what happened so far with $VV
 


  1. On September 1, I created an airdrop promotion like most ICOs ( initial coin offerings). For the first 500 wallet setups on The Violet Verse, 777 $VV tokens would be airdropped to new profile accounts. It was supposed to be an easy way to onboard users to the platform while allowing readers to purchase token-gated content. The contract on the mainnet has been live and moving a lot. 
  2. By September 15, our GTM strategy demonstrated very little engagement, so I switched approaches and created a quest campaign on Galaxy. In over 24 hours, the campaign went viral. More than 900+ new profiles were on the Verse, and the 777 airdrops maxed out! 
  3. Based on the campaign contract, one wallet racked up 13K+ $VV tokens by creating a bunch of fake accounts with emails. So instead of having 500 wallets and 500 token holders. The data showed that there were 128 unique token holders and 900+ wallets. 
  4. Meanwhile, the quest campaign was still active, and people wanted their $VV tokens in exchange for completing the assignment. New $VV holders and DeFi Traders flooded our Twitter DMs and Discord server to inquire about the airdrop! I was not expecting it to go as viral, but I was grateful for the massive increase in engagement across all social accounts. We did get some fabulous followers from the campaign. Most of them came from various corners of the globe. 
  5. At this point, our engage-to-earn feature was not live. So to encourage more participation in the contract, I decided to publish several token-gated content pieces. These were mainly videos and photos of our events. A few holders purchased the content in less than 24 hours. But I found that these were not the opportunistic defi-traders; these were $VV holders who attended IRL events. 
  6. Still, the top token-holders were not budging on the thousands of $VV tokens they unfairly racked up. Some came to our Discord and asked how to swap $VV or how to buy $VV. I naively dropped a link to Flow's decentralized exchange Incremental.fi, which led me to create a liquidity pool to experiment. 
  7. I deposited 100 $FLOW tokens, which translated to about 20000 $VV tokens, based on cryptographic algorithms. This liquidity pair amounted to a 200:1 ratio, a healthy amount to start with when a social token has no value. 
  8. I naively announced it to our Defi Traders on Discord, which was wrong or maybe a good move because I slowly witnessed the $VV liquidity pool decrease from $130 to $15. The $VV contract on the chain even has the evidence. 
  9. Meanwhile, on Twitter, I was furious. Wtf! Why are my new holders dumping so quickly? A woman in Web3 based in Myanmar slid in my DMs and confessed that the $VV airdrop went viral in Myanmar's facebook land. They recognized the value of $VV and $FLOW offloaded. Am I mad about this? No, I'm intrigued. I am even more inspired and motivated to create liquidity pools that are untouchable from opportunistic traders and create ways for equitable airdrops for true $VV tokenholders. 

Key Defi Learnings: 

  1. Make sure your airdrop doesn't amount to more than 10 USD. There's an equation in the video to follow. If the math ain't mathing, don't do a merkle airdrop. Maybe whitelist your wallet addresses after they verify or prove their true fandom. 
  2. Make sure you airdrop your social token to audiences that aren't going to dump it immediately. 
  3. Test out a sample liquidity pool with an amount you're not afraid to loose. For VV, that was less than 150 USD. 


Learn more here.


Stay tuned for more liquidity lipgloss updates! 


**Disclaimer: Nothing on the Verse should be taken as financial advice. Please do your own research. $VV utility reflects engagement on the protocol, accessing token-gated content and community events.



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