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The MGX-KSM Liquidity Bootstrapping Event will create the very first market on the Mangata X Kusama DEX: the MGX-KSM liquidity pool. It will be the first opportunity for early adopters of Mangata X to get their MGX liquidity allocation and receive early rewards. If you missed the crowdloan, this is your chance to get an MGX allocation.

The bootstrap will start on Wednesday, June 8th 2022, and will continue for a week. In this article, you will find all the details and FAQ. Make sure to read the full article and feel free to ask any questions in the Mangata Discord: discord.gg/mangata

A video guide of this article is available here:

https://www.youtube.com/watch?v=aeli5ZUrDGs

Table of Contents:

About the Bootstrap

What is a liquidity bootstrap?

A liquidity bootstrap is an event of a few days duration that initially fills up a liquidity pool to list a token on a DEX. Users that participate provision tokens in exchange for the liquidity that will later allow trading on the platform. Bootstrapping events serve an important function: They prevent high initial slippage while there is not much liquidity in the pool. Instead, the pool is locked, and there is time to fill it up before trading begins.

What are the goals of the MGX-KSM Liquidity Bootstrapping Event?

The bootstrap has four primary goals:

1. Ensure deep liquidity on our first MGX-KSM liquidity pool.
2. Discover the MGX price: Since this is the first ever MGX liquidity pool, by definition, it will also serve for price discovery of MGX.
3. Incentivize MGX provision into the pool to increase the depth and make sure KSM providers get a good allocation
4. Give a chance to initial supporters to get a minimum allocation

How does the MGX-KSM Liquidity Bootstrapping Event work?