Liquidity Launcher NFTs
Last updated
Last updated
Ignore for now
A large struggle that many projects have on launch is the depth of their liquidity pool right on launch. Having deep enough liquidity is very important for price stability right off the gate. If it’s too shallow it can lead to high volatility and either large pumps or dumps.
It can take a little while for incentives to fill in the desired liquidity and in the meantime projects have to seed the pools themselves.
Seeding a pool right on launch with 100-500k in liquidity is common practice. This means the team needing to dish out some capital alongside their own token. Half with their token (which they usually have allocation for and costs no fiat to do so) and the other half, either a stablecoin or a chain native asset (this part they need to purchase or provide out of their cash reserves).
That part can be more strenuous on teams who are under-capitalised, as it is cash that could be allocated elsewhere.
This is where a model like the Eclipse liquidity launcher comes in to help, it enables teams to empower and reward users to their seed their liquidity pool pre-launch on their behalf without having to fork out capital or even potentially accumulate protocol owned LP.
So how does this model work?
We have offered to models to users and projects, these both center around the launching projects pairing their token with the ECLIP token inside a liquidity pool. These pools will be controlled by Eclipse Pad to begin with and locked on the Loop Finance decentralised exchange.
Trades will be routed through the ECLIP-USDC pool for easy trading of the projects’ token.
These models are more complex on the back end, but are intended to be kept very simple on the front end/UI-UX for users. The two models offered are as follows:
The first model revolves around the user pledging and pairing a pre TGE IDO position from token XYZ paired with an equal ECLIP staking position. The users receives the LP farming rewards paid by the launching project for the pool while also receiving the yield and IDO benefits from the ECLIP staking position. This farming position is locked in for a period of time (6 months), but the user receives a tradeable NFT representing that farming position and the benefits which can be traded. The Eclipse platform can also retain a percentage of the trading fees/farming rewards for that pool which count as protocol owned liquidity and go into the Eclipse rewards pool.
This model may seem complex to non technical users, but on the UI/front-end we can simplify by offering the user a simple option to boost their IDO position after they have participated by minting an NFT with details of what’s needed/time locked ect (with a disclaimer (i) that talks about risks/IL and a link to docs for more technical digging) but simple will be key for users.
Model 2 acts more like protocol owned liquidity bond on launch. This is leveraging the functionality of protocol owned NFT LP rewards on Loop NFT marketplace. This enables projects to accumulate the LP pool themselves pre-launch so that they have that guaranteed liquidity (the pool is managed by the Eclipse protocol for a certain period). The users also benefits, by pledging the LP and receiving extra tokens over a slightly longer vesting period (such as 9 months as opposed to 6) the user receives a tradeable NFT representing the position which distributes the tokens. The ECLIP tokens are also locked into that LP for longer.
The Eclipse protocol also receives 5-10% of trading fees/farming rewards owned by the POL which goes into the rewards pool.
For example a user wants to opt into this NFT LP bond, they purchase this for 1000 USDC, this is then split into 50/50 of XYZ and ECLIP token and locked into POL for a set period of time.
Let’s say (based on chosen project desired APR payout) the users will then receive and NFT holding 1300 worth of XYZ tokens at IDO prices distributed over a period of 9 months. The user will also receive a certain number of ECLIP tokens and cosmic essense representing that half of the pool. This POL will be locked for a set period, after which the project can choose what to do with the POL position (Eclipse could choose to purchase it back with tokens).
Similarly to the complexity of the previous model, the technical aspect will be kept for the backend or users that want to dig further, and on the front end will be a simple button which gives the option to boost their position that they have purchased. Projects which choose this model will also open it up to users which have not participated in the IDO (but there will be a capped amount, could be a limited ‘LP round”)
If a project coming up to launch has found they have not accumulated enough Seeded liquidity for launch. They can choose the option to rent ECLIP tokens from Eclipse Pad for a set period to make up the difference. (For this they can pay with their own token, which goes into the rewards pool)
