A new era for the OVR token

Voting for the closing proposal of the IBCO ended on 26th April, 2023 at 8:00 PM CEST. More than 96% of votes were in favor of closure. Link

On 2nd May 2023 at 10:43 AM CEST, the IBCO smart contracts have been definitively stopped, and the final total supply of existing OVR tokens is equal to 89,893,756.

 

No more tokens will be ever minted by the IBCO.

 

As stated in the voting proposal, all of the DAI collateral in the bonding curve – equal to $1,438,510 – have been withdrawn.

75% of the withdrawn DAI has been exchanged for ETH for a total amount of 577.9 ETH. The capital has been used to fund the Uniswap V3 OVR/ETH pool distributing the liquidity on a full range. 

This means that 577.9 ETH has been distributed on the buy side from $ 0.298 to $0 per OVR token.

To better understand how the liquidity structure on the market has changed, let’s make a comparison between the current Uniswap V3 liquidity and the former IBCO liquidity on the buy and sell side:

 

Buy-Side

Past

IBCO buy-side from *current price to 0: $1,438,510

Now

Uniswap V3 buy-side from *current price to 0: ~ 610 ETH

 

Sell-Side

Past

IBCO sell-side from *current price to $1: ~ 7,149,000 OVR

IBCO sell-side from *current price to $3: ~ 13,800,000 OVR

IBCO sell-side from *current price to $5: ~ 17,015,000 OVR

IBCO sell-side from *current price to $10: ~ 21,454,000 OVR

Now

Uniswap V3 sell-side from *current price to Infinity: ~ 3,900,000 OVR

*Current price reference = 6,233.27 OVR per ETH = 0,298 $ per OVR

 

Note that all of the tokens on the sell-side in the IBCO era would have been newly minted tokens, while, with the IBCO stopped, all of the tokens on the sale-side are from the current supply.

The new configuration entails similar volatility in the range from the current price downwards and much higher volatility in the range from the current price upwards. Such a simulation does not account for ETH volatility and future liquidity additions for third parties or OVER.

 

As stated in the voting proposal , the remaining 25% of the withdrawn DAI will be used to fund the project.