Stage 1 - Bonding Curve
In a nutshell. The Bonding Curve allows users to swap their collateral for sEURO. Initially, sEURO is discounted by 20% meaning 1 EURO of ETH will be exchanged for 1.25 sEURO. This discount declines until the total supply has been exhausted.
The following chart shows the price of sEURO against EURO with volume.
For example, at volume 0 (x-axis), sEURO is discounted by 20%. An investment of 1 EURO generates 1.25 sEURO. As volume increases, this discount decreases until the total supply is exhausted. Keep in mind that the discount is reduced as more sEURO is minted. There is no guarantee that you will be able to swap for a discount.
The total supply is currently set to 25 million sEURO. When the total supply is reached, the price of sEURO:EURO will be pegged at 1:1.
Bonding curve example
Do NOT send ETH or any other tokens directly to the contract addresses. Funds sent to the contracts will be lost.
To participate in Stage 1 of the IBCO, users can use the IBCO dashboard or through direct contract interaction. To interact directly with these contracts, please read one of the guides in the Interacting section.
Swapping your ERC20 compatible tokens is a two-step approach. First you need to give the contract permission to spend them. Then you need to actually swap them.
If you're planning on swapping ETH, you don't need to approve anything. If you're planning on swapping a token, like WETH or USDT, you're going to need to approve the transaction first.
To approve an ERC20 token gives a smart contract the permission to spend tokens on your behalf. When you're approving your tokens, make sure you check the amount you're approving. There's no real need to approve more than you need to spend. Sadly, many DeFi projects approve your whole balance (or more!) which gives them unlimited control over your assets. You need to manually remove the permission to revoke their access.
We only ever ask you to approve the amount you're trying to swap.
Select the token you want to swap from the dropdown. Then enter the amount you want to swap.
Once you hit approve, your wallet should open. Make sure you double check the details before you confirm the transaction.
About to confirm an approval of an amount to swap
When you're happy, hit the Confirm button. The transaction will take a moment to process on the blockchain.
Finally, when you've approved that, hit the Swap button. Another Metamask screen should appear with details of the transaction.
After double checking things are in order, click Confirm and wait until the transaction has processed.
The transaction should look like this one. For this transaction, 0.1 ETH was swapped for 192 sEURO.
It's even simpler to swap ETH for sEURO since you do not need to approve anything. Simply enter the amount of ETH you want to swap and hit the swap button. Then confirm the transaction in Metamask.
We currently accept the following tokens for the IBCO:
- ETH (native)
- WETH (ERC20)
- USDT (ERC20)
- USDC (ERC20)
How is the discounted sEURO price calculated?
The short answer: if the current sEURO price is €0.85 and 1 ETH = €1000, you will receive around 1176 sEURO. This is a risk-free profit of circa €176 as long as sEURO is on par with fiat EURO. As we know, the sEURO discount will reduce as more minting occurs.
The long answer: the IBCO is open source on GitHub. The way it works is that it divides the bonding (discount) curve into smaller buckets to represent an area under the curve. Due to gas costs from doing calculations on-chain, we have decided to let each bucket represent a flat interval of a price point rather than increasing the price with a higher granularity. Technically speaking, the midpoint between two contigious buckets represents the current price. Therefore, sometimes you get a slightly cheaper price than the point where the curve actually is at, and at other times it is slightly more expensive.
I received less than what was displayed during conversion!
The conversion amount displayed before submitting a swap is an estimation based on the state of the chain at that very instance. Due to how Ethereum is programmed, it is possible that your submitted transaction was processed at a point when the chain has changed state. In essence, your swap was queued behind other swaps which received a better rate. Generally speaking, unless there was a huge transaction just before you, this difference should not be overly significant. In the end, it is an estimation which reflects the price at the time of loading the page.
I looked into the transaction hash and it looks like the contract transfers my submitted funds to another wallet. What is going on here really?
For safety reasons, we will not keep any funds in the contract wallet but instantaneously move them to a collateral wallet in the form of a Gnosis safe. In light of recent and historical events in DeFi, it is more important than ever, and we are doing our best to have the checks and balances in place to prevent any misuse or potential fraudulent actions when it comes to user funds.
I pressed the button and submitted the transaction with Metamask but still don't see any sEURO!
First of all, have you made sure that you really submitted a transaction for a swap? If you are swapping another asset than ETH, you would need to both approve that the contract moves your token and then go through with the actual swap. In other words, the swap for ERC20 tokens is a two-step process so please make sure you have gone through both steps.
If you have successfully made a swap but still cannot see your sEURO in your Metamask wallet, please make sure you have added it so you can see your balance. Either by adding the sEURO address manually, as seen on the site, or by pressing Add to Metamask.
The available balance of my wallet is incorrect!
Have you confirmed that you are on Mainnet? If you are, please make sure you have submitted an actual swap and not only an approval.
Last modified 6mo ago