XAI Buyback Commencing 4th October 2021 – New Approach, please read.
August 2021 Performance
August we finally hit a new high so we can report some positive news on the Wintermute front. The breakdown is detailed below but the headline is a trading profit of $168,330 so a buy-back of $84,165.
Buyback approach. There have been reasonable concerns about the transparency of the reverse auction process and also the time to get access to the funds once sold. We’re not geared up to managing multitudes of small payments so we tend to aggregate them monthly which causes annoyance. The reverse auction was a good experiment but I don’t think it serves XAI holders well. Now that the token is listed on Uniswap all buybacks will be done using the Uniswap platform. This will provide complete transparency and also is a step toward making XAI less reliant on Panxora for all transactions. I will cover the details of how this will work below:
Process for the buyback on Uniswap will be as follows:
- The start date for the buyback will be 19:00 UTC on Monday, 4th October 2021. This will be the date/time when we execute the first purchase on Uniswap. This first purchase will be for 10% of the total amount scheduled for purchase.
- At about the same every day for the next 9 days we will purchase an additional 10%.
- The buyback process will end if one of two conditions is met. (1) When the buyback funds are exhausted the auction will end OR (2) if the cap price is exceeded on any round buybacks will cease. If this happens the remaining funds will be placed back into Wintermute trading.
- Before the buyback starts we will purchase USDT with the buyback balance. This amount will be placed in a dedicated address for buybacks. The address that will hold the funds is: 0x268b7976e94e84a48bf8B2B57Ba34b59eD836A74
Some Very Important Changes about the Reverse Auction – Please read carefully:
- Because this will now all take place on a decentralised exchange from wallets that you own you will need to withdraw your XAI from the platform. Any withdraw requests received before 19:00 UTC on 3rd October 2021 are guaranteed to be sent before the buyback starts. If you miss that time we will execute withdrawals as promptly as possible so that everyone who wants to participate can participate. The buyback will take place over 10 days so even if you miss the first round you can participate in subsequent rounds.
- Don’t “swap” into the pool, we will be swapping into the purchase. You should add liquidity to the pool. With the V3 protocol you are able to add liquidity above the market, you don’t need to add USDT, just the XAI you are trying to sell.
- You can add liquidity in a range so, for instance, if you wanted to sell your tokens at a range of prices between ).05 and 0.08 then you set that as the pool range. You can also make the range very narrow to sell everything at the same price. By adding liquidity you receive the commission rather than paying it.
- Remember to keep an eye on the transactions. If the price rises through your pool price and you sell your XAI then you will need to drain your pool. If you leave the USDT in the pool then other sellers may swap to you (generating commission for you but you would lose your sale)
- Unlike the reverse auctions you will receive the price you sold at, not the maximum price achieved so remember that when placing your pool offers.
For participants not familiar with Uniswap the following blog post provides really clear explanations for adding and draining pools and also expalins how to create a pool above the market https://uniswap.org/blog/uniswap-v3/
About the Uniswap Pool
XAI is not currently on an active token list, when you create the pool it is setup as XAI/USDT, if you type XAI you may see XAI – SideShift, to ensure you trade the correct token enter the contract address
Contract Address is 0x268b7976e94e84a48bf8B2B57Ba34b59eD836A74
If you are unsure of anything please ask, we are happy to help. We will be actively monitoring the Telegram channel during the auction, this should be used for questions to get a prompt response. Emails to support can also be used – responses may not be quite as quick.
Good luck to everyone participating!
The AICoin Team