What is Mesa and why is @mstable_ choosing it to launch their IDO?

Mesa is front end for @gnosisPM DEX which uses ring trades and dutch-style auctions.

Thread:

1/ DeFi projects are now launching on Decentralized Exchanges.

Initial Dex Offerings

This is easier/cheaper for them and “fairer” to users.

You don't have to be a VC or an accredited investor.

Anyone with a wallet can participate

2/ However, IDOs are far from perfect

Previous IDOs were conducted on Uniswap, but Uniswap pricing function slips severely for large orders.

During times of high demand, like a token launch

Buyers later in the process can end up paying much much more than earlier buyers

3/ This severe price slippage happened for UMA https://twitter.com/teo_leibowitz/status/1255535503086100482

4/ With the latest bzrx token launch things were even worse

Tech savvy front runners used smart contracts to buy in the first block and dump on later buyers https://twitter.com/rstormsf/status/1282734073081823232?s=20

5/ To prevent all these issues, mStable is choosing to use Mesa - which runs on Gnosis Dex

While Gnosis is primarily known as a ring trade dex

For IDOs, the auction mechanism is the most important.

6/ Instead of settling trades immediately, with prices rising over time like on Uniswap

Mesa users submit their orders before each 5 minute auction.

Trades which win the dutch-style auction get filled, at a uniform settling price. https://blog.gnosis.pm/announcing-the-gnosis-protocol-89b3d7794da7

7/ With 2.6 million MTA for sale, the current settlement price is theoretically 0.35 MUSD

However because of block gas limits, the IDO may not finish within a single auction

It may happen over multiple batch auctions. In this case, the specific dynamics are hard to predict.

8/ The above is my basic understanding of Mesa/Gnosis Dex and the mStable IDO

Find out more:

Gnosis blog- https://blog.gnosis.pm/ 

Gnosis discord - https://chat.gnosis.io/ 

Mstable Blog - https://medium.com/mstable