quick note on the Automated Capital Formation mechanism. and also to the @Repponetwork community.
The concept works. (Reppo raised about $800k through the mechanism so far), but execution mechanism was stress-tested by $REPPO yesterday. and it didnt perform elegantly.
Clarity on the issue:
- at about 11pm SGT last night, the pricing oracle from a 3rd party team that was executing ACF's limit sell had some issues
- this coincided with a lot of bullish momentum on $REPPO
- the ACF mechanism stopped for 12 hours, where the fundraise didnt happen (also, the reason why there's a lot of upside volatility)
- at 10am SGT today, the mechanism started back up at about $0.01788
- the way how onchain limit sells work is that they executed within a set price band + slippage. So if the price of the token has pamped way beyond the bin, it doesnt execute. It will execute when the price falls back into the bin range
- BUT this are executed in small bins (49,500 Agent tokens worth). e.g. 700 usd bins. so price footprint is still small.
- this created a lot of sell pressure between $0.01474 to $0.01788 price range (betwen 10am SGT to 1pm SGT today).
which is now over.
- n.b. there's some chatter on the timeline about a giga dump at 8am SGT. that is behaviour of a normal trader not the ACF mechanism.
Improvements we are implementing:
- For folks who've been following the ACF mechanism, this is already the 2nd iteration. Previous problem was the bottlenecking of transactions when an agent token pamps very hard in a short amount of time. We've already fixed this.
- the 3rd party executor is implementing some extra fallback mechanisms so stuff like oracle going down shouldnt happen again.
- we are building a better version of ACF where the mechanism doesn't "Sell" into the chart, but rather acts as a tight v3 uniswap liquidity band. this will be an in-house mechanism so we have more control over it. is in the oven but will take some time to be implemented.
🏗️🏗️🦄
ACF is the right direction.
We will improve the execution.🫡
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