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Crowdpooling
The basic process of a crowdpooling is as follows:
1.The project owner provides a certain amount of tokens and specifies the unit price and issuance amount of the tokens. Anyone can top up and subscribe within a specified period of time.
2.The amount of tokens will be allocated according to the amount of funds recharged by users. In case of over-subscription, the token amount will also be allocated according to the amount of funds that the user topped up, and the over-subscribed funds will be returned to the user.
3.After the end of the crowdfunding period, the public pool will be automatically established on the DODO platform, and the crowdfunding price will be used as the opening price to open the spot trading market immediately.
At the same time, we have introduced a pre-deposit settlement mechanism for the project side of the crowdpooling, added a liquidity protection mechanism for the public pool, and supported a flexible fee allocation.
Pre-deposit settlement fees
As we know, smart contracts are passively triggered to execute, while executing the uplink operation is required to pay a certain cost. In the business of crowdpooling, when the crowdfunding period ends, a transaction needs to be triggered to change the state of the crowdfunding pool contract and create a public pool, which requires initiating a transaction to move the business process backward in the first place. Therefore we introduce a pre-deposited settlement fee to cover the cost of this transaction.
1.When creating a crowdfunding pool, the project owner pre-deposits a settlement fee to the smart contract for the end of the crowdfunding period (currently 0.2 ETH for the Ethernet chain and 0.2 BNB for the BSC chain) .
2.At the end of the crowdfunding period, anyone (including the project owner) can initiate a transaction, which ends the crowdfunding and creates the public pool. The person executing the transaction will receive a pre-deposited settlement fee.
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Liquidity Protection
In addition to the "starting fairness" between traders, it is also important to maintain a balanced and constrained relationship between traders and project parties. The more balanced it is, the more it contributes to the healthy development of the market. That is why we have designed the liquidity protection mechanism.
1.The buy order of the spot market is made up of funds topped up by users, and the sell order is made up of tokens left over after the crowdfunding period.
2.The initial liquidity belongs to the originator of the crowdfunding pool, but the originator cannot withdraw the liquidity during the liquidity protection period.
3.Anyone can continue to add liquidity as in the AMM, except that the PMM has higher liquidity utilization.
4.The spot market follows a set price curve: buy tokens and the price goes higher; sell tokens and the price goes lower.
Crowdfunding quota design
We have set up the participation quota for the crowdfunding pools, so that any pool can be set up for different users. A brief list of possible ways to play with the quota mechanism is as follows:
1.Crowdfunding pools can set the quota for privileged users and 0 for other users to achieve the whitelist targeted crowdfunding effect
Crowdfunding pools set different levels for users' vDODO balance, which can achieve the new discount for platform vDODO holders DODO crowdfunding pools support project parties to configure whitelist and designate whitelisted users to participate in crowdfunding activities, but this feature is not the default option in front-end, you need to contact DODO to achieve the background associated configuration.
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Ascending price crowdfunding and fixed price crowdfunding
DODO V2 crowdfunding currently supports both ascending price and fixed price models, of which there are similarities and differences.
Similarities
-The cost of purchasing tokens at the end of crowdfunding is the same for those who participate
-After the crowdfunding ends, a liquidity pool will be set up and trading will begin, and the initial price of trading will be the cost of the crowdfunding .
-Hard tops can be set for both models .
-Overfunding can be retrieved by participants at the end of the crowdfunding.
Differences
- Changes in the cost price of crowdpooling:
-For ascending crowdfunding, the crowdfunding cost price will follow an upward trend along the price curve. This price curve uses DODO's pmm algorithm, which is set at the time of creating the crowdfunding pool, and which pushes up the cost of crowdfunding as the number of quotes bought increases
-For fixed-price crowdfunding, the cost price of the crowdfunding is initially set and will not change. Technically, fixed-price crowdfunding is a special kind of ascending crowdfunding, i.e., the price curve is set to 0, so that the curve will become a horizontal line to achieve the effect of fixed-price crowdfunding
- How the hard top is set.
-For ascending crowdfunding, the hard top is set by passing in a fixed value, and when the crowdfunding fund exceeds this value, the price curve will no longer rise, i.e. the cost of the crowdfunding will no longer change, and the part that exceeds the hard top can be withdrawn by the participants at the end of the crowdfunding. No hard top model is also supported
-For fixed price crowdfunding, the hard top is set in a proportional way, because the crowdfunding cost is fixed and the number of bases provided by the project is fixed, so the maximum amount of funds that can be crowdfunded is fixed, our system defaults to a 50% ratio, i.e. half of the bases are used for crowdfunding and half of the bases are used to provide liquidity after the end of the crowdfunding.
- The concept of a cooling-off period.
-This will cause the final cost of crowdfunding to exceed the upper limit of their own psychological expectations, so we designed a cooling-off period, during which participants can choose to withdraw after the crowdfunding ends.
Handling overcrowding situations
When a hard top is set, there will be an over-subscription situation. The two crowdfunding pooling models are handled in the same way, i.e. after the crowdfunding is closed, the overfunding is calculated and then the overfunding is withdrawn in proportion to the proportion of the user's participation in the crowdfunding to the total participation.
The advantages of crowdpooling
The money investors spend buying coins is not being misused, but rather a liquid market is being created.
Project owners have an incentive to work carefully to maintain secondary market performance. Otherwise the amount of money that can eventually be obtained will be less.
For new assets: coin offerings are both on the market and in one step. Regardless of how many buy orders are raised, it provides sufficient selling liquidity for the tokens to facilitate the subsequent entry of large amounts of capital.
For assets that are already listed but do not have sufficient liquidity: large amounts of sell order liquidity can be released at once through crowdfunding, increasing the liquidity premium.
Compared to co-curve offering: fair start, avoiding scientists to rush.
Compared to AMM second pool mining: no need for inflation tokens to pay liquidity rent, tokens are distributed to investors instead of those who "dig and sell the mention".
Compared to auction: Crowdpooling building is compatible with auction function, yet not just simple fundraising. Immediately after the crowdsale, a marketplace with ample liquidity is created for you. Thanks to the flexibility of the PMM algorithm, even if you don't raise a lot of money, you can still build a market with plenty of liquidity for sell orders, something AMM can't do.
Last modified 2mo ago