Adding Basilisk's LBP pallet to Statemint

Just an idea I had yesterday that has gotten some interest so far.

At the moment, DOT parachain tokens have no way to get good price discovery. The only two options are go through a CEX, meaning you have to deal with a CEX and market maker, and often pay a lot, or list on another DEX in the ecosystem. Both of these approaches can involve some gambling with the starting price, and if you get it wrong it can result in a price chart that doesn’t look great, or even worse, your team putting up the liquidity for the pair and taking a big hit (look at the PICA launch for example).

LBPs are the best method of price discovery, but the only LBP platform in the ecosystem is on Kusama. While the DOT<>KSM bridge is supposedly coming this year, we don’t have any idea when, and some even think the bridge is a bad idea for various reasons.

With the upcoming Statemint DEX, it makes sense to have the ability for parachains to conduct an LBP on Statemint, and then transition right into the DEX.

As a result of this DEX, Statemint is expected to have a large amount of liquidity, which will further improve the price discovery of the LBP, and improve the second-stage price discovery once the token moves from the LBP to the DEX. This ultimately benefits everyone, except dumpers and centralized entities that charge fees.

As for whether this should/would need to be approved by the Basilisk team before implementing, I’m not clear on the ethics of that. It would be something to discuss. If this is implemented, I would like to see a nice prize given to the Basilisk team for developing the pallet, and maybe even the possibility of this change being reverted if/when the DOT<>KSM bridge goes live.

We should do this on Hydra/Basilisk if the community thinks it is useful.

Strongly opposed to start “KSM/DOT-brand” forking code from teams that are working hard to ship good products and grow the Polkadot/Kusama ecosystems.


We could deploy it on HydraDX if needed - our intention is to use the Polkadot <> Kusama bridge to allow Basilisk to service all price discovery and early stage trading (in conventional XYK pools) for Polkadot ecosystem.

That being said, if it transpires that Polkadot <> Kusama bridge isn’t going to happen - then this ofc raises questions about this strategy and perhaps we should rethink it…

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Have you thought about deploying it on Hydra for now and then removing it if/when the bridge arrives?