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For Presalers

TL;DR

Loophole runs two types of presales: a spot presale for $LOOP, the reserve token and credit presales for each collection-specific LRT. Both price at BLV, giving presalers entry at the floor. What you receive — and your risk profile — differs between the two.

LOOP Presale

The LOOP presale is a spot purchase. You buy LOOP tokens at BLV — the token's floor price — and receive spot LOOP directly.

Because LOOP's BLV can only increase, purchasing at BLV gives you structurally capped downside with uncapped upside. The floor is the worst-case exit price; any reserve growth from collection activity raises the floor above your entry over time.

LRT Presales

LRT presales work differently. You deposit LOOP during a collection's presale window and receive a credit position rather than spot tokens.

What You Get

Credit positions are created at pool initialization, when the LRT price equals its BLV. This gives you three distinct properties:

  1. Leveraged upside from the floor: Entry at BLV — the token's lowest guaranteed price — gives you leveraged exposure to any appreciation above that point, an entry that isn't replicable once the token is actively trading.

  2. Perpetual fee income: Credit positions earn 1% of that LRT's swap fees for the duration of the position — ongoing yield tied directly to trading volume, not a fixed repayment schedule.

  3. Flexible exit: Positions can be unwound for spot LRT tokens at any time. Exit value depends on current pool liquidity and spot token price — unwinding a large position against a shallow pool or low price incurs slippage.

How It Works

When Loophole launches a new collection strategy, it opens a presale for that collection's LRT. You deposit $LOOP during the presale window. 90% of proceeds fund the Open Bid — the protocol's perpetual standing offer to acquire NFTs — while the remaining 10% seeds the initial LRT↔LOOP trading pool.

Every LRT↔LOOP swap incurs a 4% fee: 2% funds the Open Bid, 1% flows to credit position holders, and 1% goes to NFT creators as royalties. Yield accrues automatically from every swap; no claiming or restaking required.

How to Participate

Choose a collection. Each LRT presale is tied to a specific NFT collection. Pick the collection you want to back — your credit position earns yield from that LRTs trading activity.

Deposit during the presale window. [TBD — UI-specific steps for connecting wallet and depositing LOOP]

Earn yield automatically. Once the presale closes and trading begins, yield accrues to your credit position from every LRT↔LOOP swap. No claiming or restaking required. [TBD — dashboard details]

Exit when ready. Unwind your credit position at any time to receive the underlying staked spot tokens. Large unwinds with low pool liquidity or spot price can incur slippage, in which case you should unwind periodically.

Risks

LOOP presale

  • LOOP's spot price cannot fall below BLV — presalers enter at the floor, structurally bounding their downside.
  • At launch, 15% of LOOP supply is allocated to the protocol, for use as incentives including its points program. Until reserves grow to offset this allocation, the effective floor sits approximately 15% below the presale entry price — making 15% the maximum immediate downside. If a presaler sells while market price is trading 15% or more above BLV at the time of sale, presalers break even or are in profit.
  • Reserve growth from collection activity is permanent and one-directional. As reserves grow, the dilution narrows and the effective floor rises back toward — and above — the presale entry price.

LRT presales

  • Yield depends on sustained LRT↔LOOP trading volume; if volume declines, yield declines proportionally
  • Credit positions carry leveraged exposure, amplifying both gains and losses relative to spot
  • Unwinding a large position against shallow pool liquidity incurs slippage
  • Credit positions use Baseline's no-liquidation mechanics, which caps liquidation risk but does not eliminate losses from price decline