We’ve just wrapped up the Season One LED trading tournament! The tournament gave us a chance to see the LED system functioning in the wild and provided a risk-free playground for the community to get familiar with the project. The Liquid Energy Dollar (LED) project is a new type of crypto asset that tracks the value of energy via a decentralized energy index. More on this, here:

https://mirror.xyz/ledmoney.eth/F8elj2LvA1wzhMJr6wqpuhK_z1aL3uYF_pDl3It9mHc

The tournament spanned one week from July 1st to July 8th and brought in 71 new Discord members with 40 members participating in the tournament. We decided to deeply integrate the experience with Discord to make it as seamless as possible to participate. We have a Tournament bot that both issues test collateral and prints out the participant’s current score. We also built a live leaderboard where participants could scope out the competition and see how they stacked up.

Check out the current leaderboard here.

To keep things interesting, we sped up the LED system by 12x, essentially packing 3 months of action in only one week ⏩ The LED system is auto-balancing, applying a positive or negative interest rate to LED holders based on supply and demand. When the market price rises above the redemption price (more demand) LED holders pay an interest rate to LED minters. This means that when the price of LED is off-peg, a counter balancing force is applied. With the 12x speed up, this balancing force grows very quickly.

There were a total of 1040 transactions initiated by the participants! This included LED minting, swapping/LPing in the Uniswap pool, and liquidations - all which were performed from app.led.money.

By far the most used contract was the Uniswap exchange for trading between LED and USD. We learned after the tournament that some of the winners actually set up alerts for large swaps against the pool and attempted to counter-trade the movement. Over the course of the tournament, LED naturally rose from $1.02 to $1.04. Because of the active market making of some participants, the redemption price closely tracked the oracle price.

The tournament wasn’t without its close calls. Two participants (@melonlusk and @0xGREED) leveraged up on USD (shorting LED in the process). Toward the end of the tournament, other participants took this opportunity to apply additional pressure to these vaults. They pushed the market price of LED down to apply a high positive interest rate for LED holders. This gradually pushed the Redemption Price up, leading to these at-risk vaults getting liquidated in the final hours, moving them from top of the leaderboard to dead last. We salute your degeneracy 🫡

When evaluating the scores we took both LED and USD into account. The price of LED was measured via a randomly chosen snapshot market price taken on the final day.

🥇1st place: @_APE with $167,529

🥈2nd place: @jaluayam with $150,842

🥉3rd place: @kyoronut with $147,808

We’ve given the winners a combined $1,000 in RAI as well as some sweet custom NFTs to add to their collection.

We sent out a post-tournament survey to help us improve the LED experience going forward. The participants rated the overall experience as a 4.5 out of 5 and identified both bugs to fix and new features to add to make trading LED even better. Through the survey we also got a glimpse into trading strategies which included market making, arbitrage, day trading, and forcing liquidations. It was great to see the diversity of participation and the sophistication of strategies across the LED community!

If you’d like to try out LED or participate in the next tournament, jump in our Discord and say hi!

We’ve just wrapped up the Season One LED trading tournament! The tournament gave us a chance to see the LED system functioning in the wild and provided a risk-free playground for the community to get familiar with the project. The Liquid Energy Dollar (LED) project is a new type of crypto asset that tracks the value of energy via a decentralized energy index. More on this, here:

https://mirror.xyz/ledmoney.eth/F8elj2LvA1wzhMJr6wqpuhK_z1aL3uYF_pDl3It9mHc

The tournament spanned one week from July 1st to July 8th and brought in 71 new Discord members with 40 members participating in the tournament. We decided to deeply integrate the experience with Discord to make it as seamless as possible to participate. We have a Tournament bot that both issues test collateral and prints out the participant’s current score. We also built a live leaderboard where participants could scope out the competition and see how they stacked up.

Check out the current leaderboard here.

To keep things interesting, we sped up the LED system by 12x, essentially packing 3 months of action in only one week ⏩ The LED system is auto-balancing, applying a positive or negative interest rate to LED holders based on supply and demand. When the market price rises above the redemption price (more demand) LED holders pay an interest rate to LED minters. This means that when the price of LED is off-peg, a counter balancing force is applied. With the 12x speed up, this balancing force grows very quickly.

There were a total of 1040 transactions initiated by the participants! This included LED minting, swapping/LPing in the Uniswap pool, and liquidations - all which were performed from app.led.money.

By far the most used contract was the Uniswap exchange for trading between LED and USD. We learned after the tournament that some of the winners actually set up alerts for large swaps against the pool and attempted to counter-trade the movement. Over the course of the tournament, LED naturally rose from $1.02 to $1.04. Because of the active market making of some participants, the redemption price closely tracked the oracle price.

The tournament wasn’t without its close calls. Two participants (@melonlusk and @0xGREED) leveraged up on USD (shorting LED in the process). Toward the end of the tournament, other participants took this opportunity to apply additional pressure to these vaults. They pushed the market price of LED down to apply a high positive interest rate for LED holders. This gradually pushed the Redemption Price up, leading to these at-risk vaults getting liquidated in the final hours, moving them from top of the leaderboard to dead last. We salute your degeneracy 🫡

When evaluating the scores we took both LED and USD into account. The price of LED was measured via a randomly chosen snapshot market price taken on the final day.

🥇1st place: @_APE with $167,529

🥈2nd place: @jaluayam with $150,842

🥉3rd place: @kyoronut with $147,808

We’ve given the winners a combined $1,000 in RAI as well as some sweet custom NFTs to add to their collection.

We sent out a post-tournament survey to help us improve the LED experience going forward. The participants rated the overall experience as a 4.5 out of 5 and identified both bugs to fix and new features to add to make trading LED even better. Through the survey we also got a glimpse into trading strategies which included market making, arbitrage, day trading, and forcing liquidations. It was great to see the diversity of participation and the sophistication of strategies across the LED community!

If you’d like to try out LED or participate in the next tournament, jump in our Discord and say hi!