Hi everyone,
We are very sorry to say we messed up today with our liquidity pool. We were rushing to meet our 11AM EST deadline and consequently, had a massively embarrassing oversight. What did we do? Well, instead of setting the price at 1 $DAI == 0.496 $DAMO, we set it at 1 $DAMO == 0.496 $DAI. As you can see, that is a 100% price increase and not what we intended. This would have been fairly ok, but the issue is that several people bought at that price, thus raising the price even more. At this point, we addressed our Discord community to tell people not to interact with the pool and that we would refund everyone and fix it.
After alerting the Discord and the buys stopped coming in, we made a tx to remove as much LP as we could (~$10K, tx hash: https://polygonscan.com/tx/0xc0e8867ac83b63363799cda33239439075888ee5350f419cd90d1c250ea7b40a). Now, the goal was to artificially lower the price back to around 0.496 DAMO per DAI. First, we added about $500 worth of LP so we could make the trades (tx hash: https://polygonscan.com/tx/0x916221242a0df4fb7d88eb7c7e899a3c8d6e1788e3e75142bf7cb33d80186db7). Now, with a tiny pool in order to increase the magnitude of our trades and decrease price faster, we started selling DAMO in order to lower the price back to what it was supposed to be (this only cost about ~$300 because LP was so small at this point). Of course, this is only possible because we refunded everyone who bought from that LP, so our manipulation did not ultimately affect any user’s funds.
After a few trades we got it down to around 0.496 DAMO per DAI. At this point, we added $10K LP back in (https://polygonscan.com/tx/0x871c4b34c4137d853359815880ae851ec7c055402e8a926c28f6b05e3a4c8c1f). Our chart looks like we dumped from $2 down to $0.496, but the reality is that we messed up by accidentally setting the price too high in the first place, so we had to lower the price ourselves and refund everyone who bought from the broken LP. As you can see from the transactions the total amount of trades made from $2 to $0.496 only totaled about $500, so absolutely nobody on the team took any profit.
TL;DR
No, we did not rug. No, founders/team did not dump tokens at $2. We just majorly messed up pricing our LP because we were rushing too fast this morning. Nobody on our team has sold a single token. All the DAMO sold to recover the price was rebought after launch (about $300). We will be monitoring and adding liquidity when needed until the campaign is launched.
To remedy this, we have refunded every user who bought tokens from the messed up LP.
In conclusion, we are very sorry for this rocky launch. We fixed it as best we could by refunding everybody’s funds from the broken LP. The only casualty here in the long run is our chart. Despite our error, the HAI DAMO team is still a group of professionals building the most advanced decentralized asset management platform in the ecosystem. We will be with you every step of the way. Thank you to our amazing community for understanding this embarrassing oversight.
