TLDR
- Cropper is using Socean Streams to purchase its own liquidity.
- On the 23rd of February 2022, 1600 (UTC+8) buyers can sell CRP-SOL Cropper LP tokens and buy a stream of CRP unlocking over 30 days (b30CRP).
- This allows long-term buyers to purchase CRP at a discount, and allows Cropper to own its own liquidity.
We’re incredibly pleased to announce that Cropper will be using Socean Streams to purchase their own liquidity. Cropper will be selling 100,000 bCRP!
Why is Cropper buying CRP-SOL LP tokens and using Socean Streams?
Due to the recent depreciation of Cropper’s farm for this pair as a result of market conditions, there’s an advantage for Cropper right now to offer CRP-SOL LPs via bond sales to remove farm emissions on the pair while still achieving their goal of keeping liquidity locked into this pair even if the farm is currently paused.
Further, Socean Streams allows Cropper to control its token supply inflation and filter out mercenary traders.
By distributing streams, Cropper slows down CRP token inflation, which is healthier for the CRP token.
The Socean Advantage: Short-Term vs Long-Term Traders
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 Cropper sold CRP to buy LP tokens on the open market, both long-term holders and short-term traders would buy CRP.
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 bCRP 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 bCRP. Soceans Streams thus allows Cropper to ensure that only high-conviction supporters purchase its token in this offering.
For more details, see the Socean Streams whitepaper.
Why should I buy bCRP?
Buying bCRP gives you a great way to support Cropper. If you believe that CRP is currently undervalued and will appreciate in the future, you can buy bCRP and in return get a better price for doing so. By buying bCRP, you will also help Cropper secure CRP- SOL liquidity.
Here’s what Robercry, Founder at Cropper, had to say:
Being proactive about how Cropper manages its governance token is a priority for us. With this integration, Socean Streams provides us the ability to take action while still empowering our community to invest at an advantage with a widely respected project on the Solana ecosystem.
We’re really excited to be working with Cropper as they are a really strong builder team.
How do I buy bCRP?
bCRP will be available for purchase on the 23rd of February 2022, 1600 UTC+8. Go to https://socean.fi/app/streams to purchase b30CRP.
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