Polkadot-powered decentralized exchange HydraDX has raised roughly $22.86 1000000 in just the 2d public token sale offered using Balancer's Liquidity Bootstrapping Puddle, or LBP.

Withal, 1 opportunistic trader was able to front-run the offering by exploiting the fact that Balancer's LBP contracts are deployed in "unpaused" status by default.

HydraDX is a substrate-based DEX that will use a unmarried "omnipool" to drive automatic market-making on the platform. The LBP offered Ethereum-based xHDX tokens that tin be redeemed afterwards for Hydra's native HDX token.

The LBP is designed to offer a mechanism for crypto projects to conduct fair launches that seeks to address the strategies traders were using to exploit Initial DEX Offerings, or IDOs, to proceeds an advantage over other participants.

Despite attempting to ensure a fair distribution of tokens, ane participant was able to front-run the offer anyway and purchase $50,000 worth of HDX earlier the auction had officially commenced.

HydraDX explained on Twitter that Balancer LBP contracts are deployed as "unpaused" past default, allowing a cunning trader to front-run the contract earlier it was paused by a single block. The squad stated:

"This incident does not actually affair. It is possible that the price paid was also high. In the LBP, beingness first doesn't necessarily mean having the best price. On the contrary, since at the beginning the cost is falling, it could be expected that without abiding extreme buying pressure the price will fall."

Balancer LBPs employ a combination of a free-floating price, fourth dimension limit, and constant selling pressure level to structure an offer and so that a token's price volition continually drop in the absence of demand. The token sale template also allows issuers to launch a pool while providing a relatively pocket-sized share of i side of a pairing — such equally HydraDX'southward xHDX token in the HDX/ETH pairing.

Hydra's LBP ran for three days, with 87% of its pool being sold to 5,274 wallets. On Twitter, Hydra noted the offering saw 25% more unique participants than contributed to Polkadot'due south 2017 ICO.

On Feb. 11, HydraDX co-founder Jakub Gregaus tweeted that the xHDX/DAI pool had ranked as the highest volume puddle on Balancer.

However, Hydra's suggestion that the price of its token would fall throughout the offering proved untrue, with HDX steadily gaining from an early low of $0.034 to shut above $0.08.

HydraDX LBP price chart: HydraDX

HydraDX stated that all funds raised through the LBP will be used to establish liquidity for its protocol, noting the project'south development will continue to be funded by its investors. 15% of HDX's supply has been allocated to its founders, employees, advisors, and investors.