On March 22, the Pulsechain Testnet V3 was launched, marking the final testnet before the mainnet release, as confirmed by Richard Heart, the founder of Pulsechain. With the impending launch of Pulsechain, it is important to prepare for it. This article will provide a plan of action to help you get ready for the launch.
Later in this post I’ll talk about my plan, but first let’s get started with the checklist:
- Use Testnet V3
- Get dry powder ready
- Get HEX or other ERC-20s before the fork
- Get everything safe in your wallet
- Ratio trading
- Use the Pulsechain bridge
- DCA into the ecosystem
- Liquidity providing and Farming
When mainnet goes live, you don’t want to be the one who doesn’t know how to go from Ethereum mainnet to Pulsechain mainnet. Now is your chance to play around, make mistakes, and learn. Testnet V3 will be essentially the same as the mainnet, so mastering it will help you master Pulsechain when it launches.
- Go to https://scan.v3.testnet.pulsechain.com/, scroll down to the bottom and click on ‘add testnet V3‘. This will add all the right settings to your Metamask. On this same website, you can follow all the transactions in real-time.
- Go to https://faucet.v3.testnet.pulsechain.com/ to receive free tPLS (test Pulsechain token) if you didn’t sacrifice.
- Head over to https://app.v3.testnet.pulsex.com/swap to start playing around with PulseX. Here you can swap tokens, provide liquidity and farm. When swapping tokens, set the gas fee to aggressive to ensure that the transaction goes through.
- Follow Richard Heart on Twitter https://twitter.com/RichardHeartWin for updates on the launch of the Buy & Burn function and other developments.
Prepare dry powder, which means having cash available to invest. Determine the amount of dollars to invest in these tokens well in advance, as making this decision on launch day can lead to under- or over-investment.
Obtain HEX or other ERC-20 tokens before the fork as you will receive a copy of everything you own on the Ethereum chain on Pulsechain after the fork. For instance, if you own 10,000 HEX, you will own 10,000 eHEX on Ethereum and 10,000 pHEX on Pulsechain. If you are considering purchasing HEX, it is advisable to do so before the fork. However, if you believe that Pulsechain’s launch will have a negative effect on HEX’s price, it is best to wait until after the launch to acquire cheap eHEX or pHEX.
Keep your ERC-20s in a safe wallet as you will not receive the copy if they are on any centralized exchange. It is essential to use a wallet where you have access to the seedwords, such as Metamask.
Outside of what is sitting in your own wallet, nobody knows exactly what will and what won’t be harvested by the Fixerbot. If you have any open LP positions, withdraw everything. If you have any limit orders open, they might not be included. To be safe it’s best to keep it safe in your wallet.
Ratio trading will be crucial in the first 48 hours after launch as no assets can be transferred from the Ethereum side to the Pulsechain side during that time. Only PRC-20s, PLS, and PLSX will be available, and the ratio between them will determine their relative value.
For instance, suppose the ratio of PLS/PLSX is 3. If you believe that PLS is worth 5 times more than PLSX, you will likely exchange some PLSX to acquire more PLS. On the other hand, if you consider PLSX to be equally valuable to PLS, you may choose to purchase more PLSX using your PLS, considering it to be undervalued.
PulseX has had three times as many wallets sacrificing for it compared to Pulsechain. This is not surprising, as many people were unaware of the Pulsechain sacrifice. Subsequently, they did not want to miss out on the PulseX sacrifice, and some may have invested more than they intended to convert a part of their PulseX for Pulsechain within the first 48 hours. Hence, I anticipate PulseX to experience a significant drop in value after its launch compared to Pulsechain. It is possible that the PLS/PLSX ratio might even surpass 5.
During the first 48 hours, HEX/PLS and HEX/PLSX will also see a lot of ratio trading. Since HEX on Pulsechain might be perceived as “free money,” some may engage in reckless behavior by dumping it all for PLS and PLSX, considering them to be the promising new tokens, while HEX has been around for four years.
Assuming that HEX on Pulsechain will eventually be the dominant one, there will be a certain ratio where swapping HEX for PLS or PLSX will become unwise. For instance, let’s assume that HEX sits at $0.20 when Pulsechain launches and eHEX & pHEX together drop 75% after launch, setting HEX back to $0.05. If pHEX holds 80% of the value and eHEX holds 20%, pHEX would be worth $0.04.
At a HEX/PLS ratio of 1:100, the price of PLS would be $0.0004, which is 4x the sacrifice price of $0.0001 on day one. However, a HEX/PLS ratio of 1:10 would mean a current price of $0.004, which is 40x the launch day price. If it reaches this ratio, it might not be a wise decision to sell your HEX anymore.
After 48 hours the bridge goes live. From that point on value from the Ethereum blockchain can be transferred over to Pulsechain. Now you can put your dry powder to use. The Pulsechain Bridge isn’t on Testnet V3 yet, so you’ll have to wait a bit before you can play with it.
When it comes to buying tokens, it’s generally not a good idea to buy on the first day. It takes time for the market to stabilize and for the panic sellers to leave. To avoid this, you can use a strategy called Dollar Cost Averaging (DCA), which involves dividing your investment over a period of time. This will help you avoid buying at the wrong time.
Launched on July 15, 2015
All Time Low on October 20, 2015
ATL was 97 days after launch
Launched on December 3, 2019
All Time Low on January 5, 2020
ATL was 33 days after launch
If you’re considering liquidity providing or farming, it’s important to know what you’re doing. Since PulseX is a fork of Uniswap V2, you’ll need to put up an equal dollar amount of both tokens. In most cases, it’s best to hold onto your coins. However, if you’re interested in experimenting, try it out on Testnet first.
There isn’t much information available yet on farming the LP tokens and getting Incentive Tokens, so keep an eye out for updates if you’re serious about it.
My goal for the mainnet launch is to make it as stress-free as possible. That’s why I’m currently doing all the necessary planning and preparations, so that I can simply click a few buttons after launch. During the HEX launch, I was so excited that I invested half of my Ethereum on day 1, and then another 25% on day 2. By day 7, I had invested everything, even though I had planned to invest gradually over a longer period of time. This time I will do better.
To ensure a smooth launch, I’ve been testing the Testnet V3 rigorously. I’ve been actively using it every day, swapping tokens, providing liquidity, and farming. I’m closely monitoring the ratios of different pairs, as well as tracking the gas fees and transaction errors on the block explorer.
In addition to testing, I’m also preparing my dry powder and ERC-20s. I’ve been carefully considering how much cash I want to invest in the ecosystem after launch, aiming for an amount that will make me very happy if the tokens increase by 100x, but that won’t devastate me if they end up worth nothing.
My plan is to ratio trade my ERC-20s for PLSX, and I will also consider swapping some PLS for PLSX if the ratio exceeds 3. My rationale for this is that I anticipate an overselling of PLSX, given the expected influx of dumpers who will exchange their PLSX for PLS.
PulseX has a larger supply than PLS by 30%, and in general, an entire blockchain is more valuable than a decentralized exchange. However, I do not believe that the difference in value should be 3x, particularly when considering the buy and burn function of PulseX.
In addition to bridging over my dry powder, I plan to transfer 25% of my liquid eHEX to PLSX.
To avoid the risk of buying at the high price on day 1, I plan to Dollar Cost Average (DCA) into PLSX over 9 weeks. Since my PLS sacrifice bag is four times larger than my PLSX bag and I believe that PLSX will be undervalued in the beginning, I will allocate a certain percentage of my dry powder to PLSX on each of the following days:
Day 7 | 6% of dry powder into PLSX
Day 14 | 9% of dry powder into PLSX
Day 21 | 12% of dry powder into PLSX
Day 28 | 15% of dry powder into PLSX
Day 35 | 16% of dry powder into PLSX
Day 42 | 15% of dry powder into PLSX
Day 49 | 12% of dry powder into PLSX
Day 56 | 9% of dry powder into PLSX
Day 63 | 6% of dry powder into PLSX
As for liquidity providing and farming, I have decided not to participate due to the risk of impermanent loss, which is not worth it in my opinion. Since I do not expect the price to remain stable in the first few months, I will refrain from providing any liquidity or farming.