After a long while, we’re proud to announce that Mercurial Finance will launch a VC pool on Bonfida. From now on, Bonfida will dedicate a specific page to host all VC pools, and will help more newly launched projects with the fund raising process.

The idea is to let anybody have the ability to be a venture capitalist and take part in the early rounds of a project’s fund raising process. In partnership with Mercurial Finance, Bonfida will be launching the MER VC Pool where participants can deposit USDC, and the Pool will swap the stablecoins for MER at a 10% discount to IEO price.

How to Participate

FIDA must be purchased to participate in the Pool — it represents the right to be a part of the Pool. For every 25 USDC deposited in the Pool, users must pair it with 1 FIDA. Put simply, to buy 25 USDC of MER you will need to put in 25 USDC + 1 FIDA. All FIDA in the pool will be burned after the Pool initializes.

While MER tokens purchased by the pool are unlocked, participants will not be able to withdraw from the pool for 1 year — which effectively makes the MER “locked”.

As with all other Pools, depositing in the MER VC Pool will receive the MERPOOL token (similar to an LP token) that represents their ownership of the pool. This token can be used to redeem assets from the pool depending on their share of it.

There is a cap of 112,500 USDC, and the pool works on a first come first serve basis.

The guidelines are summarized as the following:

  • The pool will open on 21st May (UTC +8 ) 8:00 PM SGT and will close on May 21st (UTC+8 ) 9:00 PM SGT
  • The pool will swap the USDC for MER at a 10% discount to IEO ceiling price.
  • MER IEO Ceiling Price = 0.125 USDC
  • During the 1-hour time period, people will be able to deposit USDC + FIDA in the pool with a 25:1 ratio. Eg. To buy 100 USDC of MER, you will need to put in 100 USDC + 4 FIDA
  • All FIDA deposited in the pool will be burned.
  • The deposit limit is max 250 USDC + 10 FIDA
  • A maximum of 112,500 USDC can be deposited into the pool, once the pool reaches the limit, users won’t be able to deposit any more.
  • After successfully depositing in the pool, users will receive a pool token: MERPOOL
  • MER tokens purchased by the pool are unlocked, however, the pool will remain locked for 1 year, i.e participants will not be able to withdraw from the pool for 1 year. MERPOOL is unlocked and can be transferred/ traded freely while the pool is locked.
  • Fees: 0.5% (charged in pool token MERPOOL at creation and redemption)

For example,

  • Alice deposits 250 USDC + 10 FIDA into the pool during the window period
  • She would receive 248.75 MERPOOL tokens to represent her ownership of the underlying (after 0.5% fees being charged) immediately
  • As soon as she receives the MERPOOL token, she can start trading it on the market.
  • After one year, when she redeems MER tokens, another 0.5% charge will apply, and she would redeem 2200 MER tokens

(248.75 MERPOOL*(1–0.5%)/ (0.125*0.9) =~2200 MER tokens )

About Mercurial Finance:

Mercurial is building DeFi’s first dynamic vaults for stable assets, providing the technical tools for users to easily deposit and mint stable assets, generating liquidity for their own requirements or offering them to ecosystem participants with such demands.

None of the above is financial advice.

Bonfida does not provide services to personal accounts of current residents of the United States of America, Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, or Antigua and Barbuda.

FIDA is not offered within the United States or prohibited jurisdiction.

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