In the crypto world, launchpads and DEXs are important for successful projects. Executing a successful launch as well as allowing for ease of exchange is crucial for the project and for investors. People want as much security as possible when buying tokens and exchanging them. Nothing hurts that trust more than a rugg or some kind of financial loss on the part of the platform or project. Yes, crypto is volatile and investing is a risk, but losing an investment due to some shady practices is the worst.
To combat this issue and develop trust and full control over the launch and LP process, project teams have decided to develop launchpads and DEXs. One particular grouping is that of the DexPad and PhotonSwap on Cronos. This article will explore PhotonSwap in depth. The Cronicle reached out to the developer behind Photonswap and they provided the following details. Everything written below is from that team.
In the journey of designing the perfect launchpad we concluded that a good launchpad requires integration with a great exchange, to ensure a secure transition from the sale contract to the liquidity pool after the tokensale has concluded. In a perfect world liquidity would be automatically locked after a sale concludes. This turned out to be especially important in the Cronos ecosystem, because in the young Cronos ecosystem a dex with a strong reputation has not been developed yet. Therefore we decided to acquire a DEX, to ensure a perfect integration with the Dexpad launchpad.
One month ago we acquired Photonswap and started integrating the DEX, and the PS token into our ecosystem. In the subsequent weeks we worked on the integration of the two platforms and developed our auto-lock contract, a contract that allows for the automatic locking of liquidity once the sale of a project ends, with the liquidity being locked on the Photonswap DEX. This has a major advantage for investors, because they can be sure there will be liquidity for them to trade in- and out of the token as they see fit. Teams that decide to launch on dexpad also benefit from this approach because they can ensure the safe transfer of their liquidity. Teams that decide to launch can also be sure that the liquidity they raise will be seamlessly transferred to a liquidity pool, taking away a lot of the stress and risks associated with launching a new coin.
Token distribution and Emission Photonswap
The PS token is the native token on the Automated Market Maker Photonswap (AMM). The goal of Photonswap is to accumulate liquidity so that trades can be made decentralized on the Cronos ecosystem with little price impact.
To be as fair as possible and give everyone the chance to participate, the team has opted to do no pre-sale at all and do a fairlaunch by adding liquidity on the AMM for the pair PS:CRO and locking these LP tokens for two years.
Early contributors to Dexpad are rewarded for their participation and early participation through an airdrop (2%) that will be distributed linearly over a timeframe of 4 months.
21,5% of the supply is reserved for future partnerships with ecosystem partners, potential exchanges and promising projects launching on Dexpad.Team and advisors are compensated in PS tokens, under lock-up and a 2 year linear vesting. Finally there is a special 2 year lock staking contract on Dexpad to reward long term supporters of the project for locking their tokens for 2 years with the PS token.
The majority of the token supply (55%) is used to incentivize participants to add liquidity on incentivized farming pairs. Emission for block rewards is modelled in such a way that early on the rewards are highest, and thereafter declining steadily until eventually 55.000.000 tokens are distributed as rewards in total.
The Journey of projectX (PjX)
ProjectX has decided to launch their PjX token on the Dexpad launchpad(1). They have decided to raise 100.000$ in USDT. PjX has submitted their project to the Dexpad launchpad and has passed the automatic honeypot-check, so they are ready to start raising funds. Every participant that has staked their DXP token will get an allocation for the sale of PjX token. Based on the amount of DXP tokens people stake, and the time the tokens are staked for the more Participation Points (PP) people will receive.
How much are you allowed to invest?
The calculation of the allocation per participant is calculated by calculating the PP per participant. Afterwards the total amount of PP is calculated by adding all individual PP scores together, and dividing the individual iPP by the total amount of tPP, resulting in your share of Participation points (sPP). Your sPP is then multiplied by the total amount that is being raised to calculate your max commitment for the project.
One week after the sale has started, 90% of the tokens have been sold. The remaining tokens are sold, and everyone is able to buy these tokens until they are sold out. Once the remaining tokens sell out a tax of 2% is levied, on the PjX token AND the raised USDT, and transferred to the DXP treasury. the remaining tokens are:
- Automatically transferred to a Locker on DexPad. Minimum 50 % of funds raised in sale will be automatically locked for at least one month. This ensures the safe transfer of the funds to a liquidity pool, so participants are able to buy and sell the token!
- The remaining USDT and Pjx tokens will be transferred to the ProjectX team.
What happens with the fees?
As explained in the previous section the sale of ProjectX was taxed with a 2% fee on the PjX token sold, and the USDT raised.
- The USDT that has been raised by the project will be transferred to the treasury, and used to buy back and burn DXP tokens. Therefore reducing the total supply of DXP and making it deflationary.
- The PjX tokens that have been collected will be distributed to the stakers of DXP based on your sPP as explained in the previous section.
Liquidity on Photonswap
After a sale has concluded the tokens are officially launched on the Photonswap platform These tokens will be open to trade to everyone. Teams launching on Photonswap will have the opportunity to launch a Syrup pool where stakers of PS are able to receive PjX token for one month, rewarding Photonswap holders and gaining access to the Photonswap community. Projects that are setting up such a Syrup pool can submit a proposal to the Photonswap team to discuss the options for receiving PS rewards on their Photon Swap liquidity pair.
AMM swap fees
Swaps on Photonswap will be taxed with a 0.3% swap-fee. 0.15% of this swap fee will be returned to the liquidity pool, rewarding the liquidity providers. The remaining 0.15% will be split between buyback and burns, and used to fund the Photon ‘syrup’ pools.
DXP & PS cross-staking
To deepen the relation between PS & DXP there will be staking pools where DXP holders can earn PS, and PS holders can earn DXP.
- Earning PS with DXP: DXP holders that decide to stake their token in the 2 year DXP staking contract receive PS tokens over the two year period their tokens are locked. 6.17% of the total supply of PS token will be distributed in this pool over the next two years. Locking tokens for two years will provide all the benefits of the other lock pools (highest allocation in DXP sales & profit share). On top of these rewards stakers in this pool will also receive PS tokens.
- Earn DXP with PS: PS holders will have the opportunity to stake their PS tokens in the DXP Syrup pool to receive DXP tokens. This syrup pool will be flexible, and allow users to enter or leave the pool whenever they want. This pool will receive 30% of the total liquidity rewards over the next 2 years. DXP will have limited inflation, to enjoy the DXP rewards while they last.
- Website: https://photonswap.finance/#/swap
- Twitter: https://twitter.com/photonswap_fi
- Telegram: https://t.me/photonswap_fi
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