Impossible x Cruize Finance Buy-back Protection Program
Hi Penguins,
As part of Impossible’s continued efforts to ensure the protection of our community, we are thrilled to announce Impossible has secured a token buy-back protection program (“Program”) for Cruize Finance participants. Only users who participated in Impossible’s Cruize Finance token sale (“Token Sale”) can access the downside protection. Kindly refer to section “2. Who is eligible to participate in the Program?” for more information on eligibility.
Through our close partnership with the Cruize Finance team, we are confident they will deliver on their protocol, roadmap and vision of providing volatility-protected yield opportunities on crypto. This token buy-back protection conveys the same confidence to all those who have participated in the Token Sale.
The Impossible IDO #19 Cruize Finance token sale is currently ongoing! If you haven’t already participated in the token sale by staking IDIA or vIDIA in Arbitrum and/or BSC pools, now is the time to start!
The Impossible Buy-back Protection Program Details
1. How do we protect users?
Simple Explanation
3 months after TGE
- Cruize Finance has pledged, on-chain, to buy-back your CRUIZE tokens at a price of US$0.077, or approximately 30% from the Token Sale price, subject to the conditions below.
This means that if you are eligible (user meets the conditions stated in Q2 below), you can sell back the amount of CRUIZE tokens purchased during the Impossible Launchpad sale, thus protecting you from potential downside price risk of CRUIZE after 3 months.
Technical Explanation
Under the Program, eligible users may sell back the CRUIZE token, subject to the conditions set out below:
*Evaluation Period: The time which Impossible will determine if the token price has dropped below the downside protection price
**Opened: The time in which the buy-back will be available if Impossible decides to open up the program during the Evaluation Period
Impossible Finance reserves the right to not activate the Program or run it on OpenSwap, if the market price of the token is expected to be above the buy-back price during the buy-back valid time period.
2. Who is eligible to participate in the Program?
Users who are eligible for the buy-back program consist of “eligible users” who are users whose wallet addresses participated in the Token Sale. Under the Program, eligible users can only sell back the tokens, which were bought during the Token Sale and held at the same wallet address used in the Token Sale (“Sale Wallet”) until the Buy-Back Valid Time.
To clarify, users who are NOT eligible for the buy-back program consist of:
- Users who transferred their tokens to any Centralized Exchange (“CEX”) or Decentralized Exchange (“DEX”)
- Users who have transferred their tokens out of the Sale Wallet
Unless otherwise provided by the scenarios above, the tokens that have been sold or transferred out of the Sale Wallet are not eligible for buy-back under the Program. For example, if $100 of tokens were bought in the Token Sale and only $40 were held until the Program starts, only $40 can be sold back in the Program (assuming the tokens are fully unlocked).
Impossible Finance and the project team reserve the right to modify the eligibility conditions before the buy-back valid time period, and will notify the community if so modified. Eligible users may contact the Impossible Finance team if they believe there is any error in the number of tokens they could sell back under the Program.
Note that OpenSwap may charge users a small fee to complete the buy-back process.
3. When can I use this?
Subject to the above conditions under Q2
Example 1 (4 months after TGE) - Forgo the buy-back because CRUIZE price goes up
Token Public Sale Price = US$0.11
- User Wallet 1 - Buys 1000 CRUIZE tokens = net worth US$110
- User Wallet 2 - Buys 10,000 CRUIZE tokens = net worth US$1,100
October 2023 - Token Market Price = US$0.154 (price increased 40% from IDO)
- User Wallet 1 - Eligible to sell 1000 CRUIZE at US$0.154 but will forgo the buy-back as the price is US$0.077 = net worth US$77
- User Wallet 2 - Eligible to sell 10,000 CRUIZE at US$0.154 but will forgo the buy-back as the price is US$0.077 = net worth US$770
Example 2 (4 months after TGE) - Participate in the buy-back because CRUIZE price goes down
Token Public Sale Price = US$0.11
- User Wallet 1 - Buys 1,000 CRUIZE tokens = net worth US$110
- User Wallet 2 - Buys 10,000 CRUIZE tokens = net worth US$1,100
October 2023 - Token Market Price = US$0.066 (price fell 40% from IDO)
- User Wallet 1 - Eligible to sell 100 CRUIZE at US$0.077= US$77
- User Wallet 2 - Eligible to sell 1000 CRUIZE at US$0.077 = US$770
- Users above lose 10% - avoid losing an additional 30% because they are protected.
3. Mechanism: How can you access the program?
We will be implementing the buy-back mechanism on OpenSwap’s whitelisting limit order feature. OpenSwap was Impossible’s second IDO project, and we are firm believers to continue helping our past and present projects to integrate together to build a stronger Impossible ecosystem.
The OpenSwap feature that allows us to make this program a reality is called “Buyback Queue”. The feature is audited by CerTik, and transparent on-chain for users to see the buy-back protection. You can read more about the mechanism here.
4. Fundraise Custody
For transparency, respective proceeds from the Token Sale (“Proceeds”) for the Program will be held in a multisig wallet protected by both Cruize Finance and Impossible Finance council members to fund the Program. Address may be publicly shared later.
The remaining Proceeds not required for the Program will be returned to Cruize Finance so they can use it to build out their ecosystem.
5. Why are we doing this?
At Impossible Finance, we want to set the tone for what Launchpads should be. We treasure our community, first and foremost. We aim to find the best crypto opportunities for you and at the same time try to protect you against risks.
By reserving part of the Proceeds to fund the Program, we are actually taking the first step in creating something mentioned in our original whitepaper, the SSIDO - a self-sustaining IDO.
While the funds are held in escrow and the team works to deliver on its milestones, they can also be used to earn yield in safe DeFi protocols, allowing for projects to build with confidence and garner support from the community. The community then has peace of mind in knowing that their hard-earned dollars are being put to good work and not just distributed to project teams that could run away with funds. We now have run a few Programs and we believe it’s a good way to make sure all users have less risk when backing those who are BUIDLers.
About Cruize Finance
Cruize Finance provides volatility-protected yield opportunities on crypto. The protocol provides vaults for users to stake their capital and generate safer yields using combinations of derivatives and bonds in pre-packaged instruments called structured products.
Website | Twitter | Discord | Medium
About Impossible Finance
Impossible Finance is the go-to crypto investment platform that empowers you with high-quality, fair and accessible crypto opportunities. We simplify DeFi so you can enjoy fairer investing, cheaper trading and better yields through our accelerator, launchpad, and swap platform.
Website | Twitter | Discord | Telegram | Blog
Terms & Conditions:
- DISCLAIMERS, TERMS, and RISKS
- Impossible reserves the right in its sole discretion to amend or change or cancel this announcement at any time and for any reasons without prior notice.
- Only users that have participated in Impossible’s IDO#18 Cruize Finance Token Sale will be eligible for this buy-back protection. Specifically, only KYC’ed wallet addresses that have purchased and claimed CRUIZE tokens on the Impossible Finance Launchpad will be protected.
- Users need to complete their KYC and also be from an eligible jurisdiction to participate in this token sale.
