Larix is using Socean Streams

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TLDR

  • Larix is using Socean Streams to sell bLARIX.
  • On the 21st of February, 2022, buyers can buy a stream of LARIX unlocking over 30 days (b30LARIX) with USDC.
  • This allows long-term buyers to purchase LARIX at a discount.

We’re incredibly pleased to announce that Larix will be using Socean Streams to sell bonded LARIX. Larix will be selling $20,000 of bLARIX.

Why is Larix using Socean Streams?

Socean Streams allows Larix to control its token supply inflation and filter out mercenary traders.

By distributing streams, Larix slows down LARIX token inflation, which is healthier for the LARIX token. They recognise the negative impact liquidity mining does to price action.

Socean Streams also filters out short-term traders. There are two types of buyers: long-term holders who believe in the protocol (HODLer Harry), and people who are only interested in short term price action (NGMI Nathan). If Larix sold Larix to buy LP tokens on the open market, both long-term holders and short-term traders would buy LARIX.

Everything changes once we add the time component. Long-term holders have a lower discount rate (they are more patient) than short-term traders. They will be willing to pay a higher price for bLARIX compared to short-term traders, and will thus outbid them.

The graph below shows the price that a more patient holder would pay vs. an impatient trader as the bonding duration increases. If the price is anywhere above NGMI Nathan and below HODLer Harry, NGMI Nathan will not purchase bLARIX. Soceans Streams thus allows Larix to ensure that only high-conviction supporters purchase its token in this offering.

https://cdn-images-1.medium.com/max/1600/1*BrIb1-jZrQDEW9zM3stodA.png

For more details, see the Socean Streams whitepaper.

Why should I buy bLARIX?

Buying bLARIX gives you a great way to support Larix. If you believe that LARIX is currently undervalued and will appreciate in the future, you can buy bLARIX and in return get a better price for doing so.

Here’s what the Larix Team had to say:

The Larix team is extremely optimistic about working with Socean and integrating the bonding stream functionality.

We’re really happy to work with another protocol like Larix to work to a better and more sophisticated Solana DeFi ecosystem, with sustainable tokenomics, that does not rely heavily upon liquidity mining.

How do I buy bLARIX?

bLARIX will be available for purchase on the 21st of February, 2022. Go to https://socean.fi/app/streams to purchase b30LARIX.

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Socean Finance

Socean Finance

Building decentralised, positive-sum financial products