What is the difference between a FlashLaunch and a Launchpad?
The TrustSwap Launchpad is one of TrustSwap’s prominent crypto services. It allows participants to gain early access to DeFi projects with guaranteed allocation*. Moreover, it includes an easy application process, a convenient 24-hour application window, and no gas wars. Check out this blog post which explains our launchpad service in detail, including participation instructions and benefits to stakers and DeFi projects.
The community has embraced launchpad projects and a lot of participants gained high APY rates throughout the last months. However, we had to turn down many DeFi projects with smaller raises which were not ideal for the Launchpad model. For example, since there is no hard cap on the maximum number of participants, if a project wishes to raise $120,000 and 3,000 people applied, that would leave an average of a $40 allocation per person. This does not seem to be an ideal staking opportunity for participants. Additionally, participants must pay gas fees to stake, send and claim tokens. Therefore, a low allocation of $40 would now make sense at all.
It is our belief that the community deserves an extra opportunity to participate in lower-raise launchpads. That’s why we created FlashLaunch, where participants have a chance for an allocation based on a fair lottery system! Through FlashLaunch, we aim to provide this extra service to the TrustSwap community, ensuring a reasonable allocation amount for stakers, regardless of the small raise. FlashLaunches are provided exclusively for projects raising below $750,000.
FlashLaunch Allocations
Each FlashLaunch offers a limited number of individual allocations of exactly $500 per person. The allocation occurs through a fair lottery system.
Similar to the standard Launchpad process, participants need to fill out the application form in order to participate in a FlashLaunch. Once all applications are filled in, the lottery tickets become active and the $500 allocations are assigned to winners through a provable fair lottery system.
The number of lottery tickets a participant gets is directly proportional to the multiplier in the table below. For example a 3X Entries, means 3 tickets in the draw. The higher the SWAP Staking Score of a participant, the better the odds of winning a FlashLaunch allocation. Each participant can only win once per project.
Golden Ticket NFTs
Bidding on Golden Ticket NFTs, is an additional way for participants to join a FlashLaunch. For each FlashLaunch, a limited number of Golden Ticket NFTs may be minted by TrustSwap. Each unlocks a guaranteed* $500 allocation for that specific launch. A limited number of Golden Ticket NFTs are minted per FlashLaunch and registered applicants can attempt to buy as many as they wish.
These NFTs are initially put for auction with no minimal bid. Whoever holds the NFT at the “snapshot” time is joining the whitelist for an allocation. After the snapshot, these NFTs become collectibles which may grant additional benefits in the TrustSwap ecosystem.
Participants can join a FlashLaunch both with a lottery ticket and a Golden Ticket NFT. Selected applicants from the lottery draw can also hold Golden Ticket NFTs and get one or more additional $500 allocations!
Example of a FlashLaunch
- A new project wants to launch Token X and raise $250,000 which automatically results in a maximum of 500 participants.
- SWAP stakers of the minimum required amount wishing to allocate $500 in Token X, can participate. They have to apply within a 24-hour window.
- Each applicant owns a number of lottery tickets based on their SWAP Staking Score.
- 10 Golden Tickets are minted and auctioned.
- A random selection of 490 entries occurs and 10 Golden Ticket NFT holders receive the 10 remaining allocations.
- The lucky winners need to perform the KYC requirements within 18 hours to confirm eligibility.
- After the verification, they must send the funds within a 24-hour window.
- All ready for the token launch!
- 10% of the Golden Ticket NFT proceeds goes to the Eden Reforestation Project. A significant contribution to a better, greener world!
Conclusion
Launchpads still include huge advatanges for potential stakers and are an important part of the TrustSwap ecosystem. The current Launchpad model has not changed for raises over $750,000. They will still include guaranteed allocation* for participants with a SWAP Staking Score over 4000.
FlashLaunches now emerge in order to bring more opportunities to SWAP stakers than were previously available. Furthermore, it is an additional opportunity for smaller-scale DeFi projects to gain exposure within the community.
*Pending KYC and geographical restrictions
