At 22:00 Beijing time last night, the Arbitrum ecological index protocol Arbitrove completed the public offering of its governance token TROVE on the Launchpad of the decentralized exchange Camelot, and finally raised a total of 8222.2178 ETH, or about 14 million US dollars.

According to the design of this auction, this total amount of funds raised means that the 200 million TROVE released by Arbitrove in this public offering (accounting for 20% of the total supply) will be sold at a price of 0.0000411 ETH (about 0.07 US dollars) tonight on 22: 00 officially opened.

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“70% of public offering funds will be used to maintain liquidity”

Arbitrove first mentioned the liquidity pool situation that public offering participants are most concerned about at the moment. Since Arbitrove has not yet cooperated with any other exchanges other than Camelot (although some CEXs have announced their launch), Arbitrove will be the first after the market opens. Time to deploy TROVE/ETH liquidity on Camelot,At the same time, 50% of the public offering of ETH will be put into the pool to supplement liquidity(The original plan was 30%)。

In addition, Arbitrove will also introduce a 14-day reserve price protection measure,If the price of TROVE falls by more than 20%, Arbitrove will enter a buy "using a variety of order types," with a maximum input size of 20% of the total public offering size.

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"ALP is expected to be released at the end of the month"

In terms of products, Arbitrove is advancing the delivery of the V1 version, which is still under audit. In addition, Arbitrove is also trying to expand the size of the team and is currently communicating with potential candidates.

As for future development plans,Arbitrove's next focus will be the launch of the index token ALP and the launch of the staking function of TROVE, with the ALP expected to jump-start after receiving feedback from the remaining auditors at the end of the month.

According to the description, ALP is a yield index token based on a basket of selected tokens such as GMX, MAGIC, and GRAIL. Arbitrove will use various strategies to increase the yield of ALP. As a single token, it can also be used in Arbitrum DeFi Used as collateral or assets in the ecosystem.

Arbitrove anticipates that the ALP will offer very attractive yields as, in addition to the 50% yield based on various underlying assets, TROVE's liquidity incentive benefits will be added, along with other additional benefits driven by capital raised.

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Investment sentiment is hot, but risks cannot be ignored

Perhaps due to the expected trend of potential airdrops, the investment sentiment of the entire Arbitrum ecosystem has been quite hot recently. In addition to Arbitrove, another project Factor (FCTR), which launched a public offering in Camelot last night, has also raised about 4.4 million USDC.

However, it should be noted that the auction mechanism adopted by Camelot public offering projects such as Arbitrove and Factor does not have a hard cap and cannot withdraw capital, so the potential risk factor is relatively high. Although the data in the public offering stage is good-looking, since there are only buyers and no sellers in this stage, it cannot accurately represent the real valuation status of the project in the secondary market. You can first look at the performance of TROVE after the opening).

Therefore, it is recommended that you take a more rational look at the recent so-called public offering opportunities in the Arbitrum ecosystem (of course not only within the ecosystem), and refrain from being dominated by FOMO emotions.