Blackswan Incentives Post-July 21st

Blackswan Token
3 min readJul 19, 2021

Cryptocurrency markets are heavily correlated and full of downside tail risk. While there are many tokens competing to achieve the highest positive growth during these periods, virtually none of the projects plan for the opposite, extreme contraction during market cycles.

Blackswan maintains stability not only during market growth cycles but unleashes growth during contractionary market periods with the aim to move as an anti-fragile asset or uncertainty index.

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The full Blackswan logic launch is rapidly approaching, July 21st! There are a plethora of implications related to the $SWAN token that holders must be aware of and they all contribute to the very exciting long term vision of the project that we are so close to seeing in action. As the community would say, SWANRMY is ready to go into battle.

DeFi is taking notice. We have been hinting at this through tweets and telegram messages in our groups. Behind the scenes $SWAN has been starting to get recognized by some very significant projects that believe in the unique mission we are trying to accomplish. Our team is excited to share more information about these partnerships soon.

If you are not familiar with Blackswan, be sure to watch our explainer video here and read our whitepaper.

How should you position yourself in the Blackswan ecosystem depending on your goals? This question and more will be addressed below.

The Blackswan Lake

At the core of the $SWAN token, the Blackswan Lake represents essential functionality to the success of the project and thus is heavily incentivized. $SWAN creates value growth for investors through two systems, marketcap growth and token appreciation.

Marketcap growth through supply expansion is only available to those who are staking in the Blackswan Lake. This means that while stakers are exposed to impermanent loss, passive incentives coming from $SWAN supply expansion are only available to Blackswan Lake participants. Not to mention the fact that high liquidity will minimize impermanent loss due to relative price stability that is the aim of the token. This process will easily outweigh the downsides of LP exposure alone.

Aggressive rewards paid 50% in stablecoin (by distributing addition LP tokens from the Blackswan Fund) are given to Blackswan Lake stakers during periods of uncertainty. This means that stakers are rewarded proportional to the risk that they are taking based on market conditions.

Holding the $SWAN Token

While a majority of users will find more value in staking in the Blackswan Lake in order to experience the full benefit and functionality of the Blackswan ecosystem, the $SWAN token itself can still be attractive to hold. $SWAN may experience substantial price appreciation as more users become aware of the project and purchase $SWAN in order to participate in the Lake.

$SWAN is also a speculative traders dream asset with predicable price action during periods of uncertainty. This means holding the token long term as a market hedge or short term to take advantage of price appreciation that may come from users purchasing the token to gain access to aggressive Blackswan Lake rewards can be attractive.

As more systems are added to the Blackswan ecosystem including our upcoming stablecoin (which requires a Blackswan Lake stake in order to gain access to) go into action, $SWAN scarcity and functionality is a priority further expanding its use case.

Where should you position yourself?

The Blackswan Lake is the place to be if you want to experience the full potential of $SWAN at these early stages. Holding the $SWAN token on its own can beneficial as well, an ecosystem token is designed to grow with the adoption of the project, and that is exactly what we expect to occur.

We are in exciting times, and more importantly, early stages of this project. All exposure is good exposure and the lindy-effect will pay dividends as the project progresses.

Finally, thank you to all of the early stage adopters and contributors to the project that have allowed us to get to this stage. More updates will be released in the coming days!

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