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Launch auction

How the Uniswap Continuous Clearing Auction (CCA) used to list NOTE works, and what happens to the proceeds. Mechanics follow Uniswap’s documentation (CCA concept, Uniswap blog); NOTE figures are the deployed parameters.

fact unless marked as an estimate.

  1. 17,500,000 NOTE are sold over about 24 hours in a schedule fixed in the contract: 10% in the first 2.8 hours, 50% in the next 14 hours, 40% in the final 7 hours (estimate in hours; exact in blocks).
  2. A bid is a budget in USDG plus a maximum price per NOTE. Bids are placed through the Uniswap app and spread automatically across every remaining block of the auction.
  3. Every block, that block’s tokens go to the highest bids first; the last price needed to sell the whole block is the clearing price, and everyone filled in that block pays that same price, not their maximum.
  4. Clearing prices can only stay flat or rise as bids arrive. A bid above the current price keeps filling; a bid that falls below it stops filling and its unspent USDG can be withdrawn.
  5. When the auction ends, all USDG raised is placed into a Uniswap v4 NOTE/USDG pool at the discovered price, paired with NOTE from the 7,500,000 reserve. The pool takes as much reserve NOTE as the USDG can pair at that price; the rest of the reserve moves to the custody timelock. Bidders claim their NOTE once the pool exists.
ItemValue
Tokens for sale17,500,000 NOTE (17.5% of the 100,000,000 hard cap)
Reserved for the pool7,500,000 NOTE (the amount that enters the pool depends on the raise and the clearing price, see below)
Floor price0.002 USDG per NOTE
Minimum raise20,000 USDG
DurationBlocks 57,163,207 to 58,013,207 on Robinhood Chain (about 23.8 hours)
Pool creation and claimsFrom block 58,016,207 (about 5 minutes after the end), when anyone calls migrate()
Team proceedsNone. 100% of USDG raised becomes pool liquidity
Auction contract0x4644fb88b741eF8EA32aC6FeE6f2534aEEc0D02f (verified, Uniswap code)

Example (estimate): a bidder commits 1,000 USDG with a maximum of 0.004 USDG per NOTE.

SituationOutcome
Clearing price is 0.002 in early blocksThe bid fills at 0.002 in those blocks, 500,000 NOTE per 1,000 USDG worth of fills
Clearing price rises to 0.003Fills continue at 0.003; the bidder pays the block price, never 0.004
Clearing price moves above 0.004The bid stops filling; unspent USDG can be withdrawn at any time
Auction endsThe bidder claims all NOTE filled across the blocks; average cost is the blend of the block prices paid

Earlier bidders usually get a better average price because more of their budget fills in cheaper blocks. Bidding above the market does not overpay: the maximum is only a limit, the price paid is the clearing price.

At the end of the auction the launch strategy (Uniswap’s LBPStrategy, not our code) builds a Uniswap v4 NOTE/USDG pool (1% fee tier) at the final clearing price:

ComponentContentPurpose
Full-range positionAbout 43% of the USDG raised, paired with the NOTE that matches it at the clearing price (USDG divided by price), drawn from the 7,500,000 reserveTwo-sided liquidity at every price
One-sided USDG positionAbout 57% of the USDG raised, placed from the clearing price down to about half of itA standing buy wall directly under the launch price

Percentages follow the position weights in the launch configuration (4,285,714 : 5,714,286). A Uniswap position holds equal value on both sides at its price, so the full-range position is sized by its USDG: NOTE in the pool = 43% of the raise divided by the clearing price. Because the auction clears block by block and most of the supply fills before the final price is reached, the raise is smaller than 17,500,000 times the clearing price, and the USDG side is the limiting one. Reserve NOTE that the USDG cannot pair is transferred to the custody timelock in the same migration transaction, held as protocol-owned inventory outside the pool and not circulating.

Example at a 0.05 clearing price and a 250,000 USDG raise (arithmetic, not a forecast): 107,000 USDG plus 2,140,000 NOTE full range, 143,000 USDG as the buy wall between 0.025 and 0.05, 5,360,000 NOTE to custody. Pool value at the open: about 357,000 USDG equivalent.

The pool positions are protocol-owned liquidity. No proceeds are paid out to the team, and the pool is the only place NOTE trades on day one.

If less than 20,000 USDG is raised by the end, the auction does not graduate: every bidder withdraws their full USDG, no pool is created, and the 25,000,000 NOTE return to the protocol’s custody timelock.

BucketNOTEStatus at listing
Auction17,500,000Sold to bidders
Pool reserve7,500,000Protocol-owned: the paired portion in the pool, the rest in the custody timelock
Founder, team, advisors, marketing23,000,000Held in the vesting vault, released as distributed
Custody (ecosystem, community, treasury)12,000,000Custody contract, no unlock before listing
Not yet minted40,000,000Subject to the per-epoch mint cap enforced by the token contract

Circulating supply on day one is the 17,500,000 auction NOTE plus the NOTE inside the pool. Reserve NOTE held in custody is not circulating.