Introducing LIFTOFF & Crash Insurance
LID Protocol has always been at the forefront of the presale fundraising and liquidity locking curve. With the imminent release of LIFTOFF, this same pattern continues today, and into the future.
The existing self-service fundraising market for ERC20 tokens and projects has long left much to be desired. LIFTOFF tackles these issues and provides never before seen solutions to further our directive of making the DeFi space a safer place for investors.
A sophisticated, flexible, and dominating technology breakthrough, LIFTOFF will reshape the self-service presale market entirely.
What is LIFTOFF?
LIFTOFF is the first-ever fully self-service insured launchpad.
This means any project or developer can launch a new token at no cost other than gas fees, with the added benefits and extra protections given to potential investors — these extra protections and benefits can potentially mean greater trust in the fundraising process, as well as greater participation from investors.
Some of these extra protections and benefits include:
— No Team Tokens.
- Groundbreaking xETH tech allows for 112% of raised ETH in value (see below)
- 100% Crash Insurance for 1 week after listing and a reduced insurance pool for subsequent weeks
- Project Devs are paid in ETH 10% per week over 10 weeks, minus any insurance redemptions.
- PenguinSwap partnership helps prevent Vampire Arb Bots from stealing from LIFTOFF launched projects.
What is Crash Insurance?
Crash Insurance is as the name implies, insurance offered to investors — the way it works is simple: if for whatever reason the investor is unhappy with their investment in the first week of the project going live, tokens can be redeemed for 100% of the presale price, minus a 2% ETH service fee (LID fee). For the next 10 weeks, the insurance is still available but reduced.If no claims were made in the first week, the insurance fund is reduced to 42.5% (however, 100% of the presale price can still be claimed). The insurance fund then reduces 10% per week. Crash Insurance will be offered and available on all LIFTOFF launches.
What is xETH? The TL:DR version
The purpose of xETH is to take the place of the ETH locked in liquidity that can never be redeemed due to the limited supply of unlocked native tokens. Given that the xETH can never be redeemed from the liquidity pool, the ETH against which it is minted can be used freely.
What is xETH? The detailed version
LIFTOFF capitalizes on the mechanisms by which AMM liquidity pools function to free a portion of the ETH locked in liquidity without reducing the liquidity itself. In any XXX/ETH liquidity pool, ETH can only be withdrawn by selling XXX tokens, provided that the liquidity is locked permanently.
Consequently, the total amount of ETH that can be withdrawn from the pool is a function of the percentage of the native token that is unlocked. By locking a sufficiently large portion of the total token supply in the liquidity pool, it is therefore technically impossible to withdraw all of the ETH within the liquidity pool.
Normally, the ETH that cannot be withdrawn from the liquidity pool is essentially destroyed value, however, LID has developed the technology to use xETH in the place of this ETH, thus preserving its value.
Based on the token allocations within LIFTOFF, 12% of the total ETH raised would normally be permanently trapped within the liquidity pool. To free this ETH, xETH is minted against it in a 1:1 ratio and is then deposited instead of the ETH upon creation of the liquidity pool. Given that the xETH can never be fully claimed from the pool, the 12% ETH against which the xETH was backed is free to be used. Overall, this results in the following allocations for LIFTOFF presales:
68.5% liquidity
35% dev fund (for the project raising funds)
6.5% insurance
2.0% lid fee
Total = 112% (12% bonus through the use of xETH)
The bonus 12% value that is generated by using xETH and the locked dev fund also allows for LIFTOFF to provide 100% Crash Insurance for the first week and a reduced insurance pool in subsequent weeks. As no team token allocations are issued, projects are unable to take advantage of, or game the Crash Insurance pool. In conclusion, LID has managed to greatly improve upon AMM liquidity pool function to generate substantial protections for investors by freeing the value that was previously destroyed when creating liquidity pools using xETH.
In addition to the above, xETH (and the underlying ETH) is securely locked in the liquidity pool. The only way to retrieve any portion of this xETH outside of the service fee and Dev fund payments is an investor claiming insurance — no other method of xETH retrieval is possible.
What is PenguinSwap, and why is LID partnered with them?
PenguinSwap is a newly developed and deployed front-end interface that interacts with Uniswap’s contracts. This means that transactions carried out on the PenguinSwap interface interacts with, and uses the same liquidity pools as Uniswap — it is not a separate DEX.
As David Felton from Penguin Party says, “See, Uniswap has a problem: It has preferred routing pairs that exclude a lot of tokens. What does this mean? It means that on occasion it can give you a worse route for your trade than would be optimal.”
What this means for the average trader, is that by using PenguinSwap the potential is there to get better value trades. The reason for this is simple: PenguinSwap offers a greater variety of preferred routing tokens.
To add to this awesome point, PenguinSwap has already implemented the LID token as a preferred routing token, with our xETH token also being implemented as a preferred routing token. This means that for every project that launches through LIFTOFF, we are able to take advantage of the freed-up ETH value, as well as get better value trades through PenguinSwap. And Vampire Arb bots? Soon to become a distant memory.
Why should project team’s and Developers use LIFTOFF?
LIFTOFF provides greater security and protection to investors when compared to every other available offering on the market. This increased security and protection can potentially lead to greater trust and contribution participation from prospective investors.
With the guarantee of liquidity being instantly locked, and crash insurance offering investors the potential for their money back, it is a win-win for both team and investor alike.
Being a self-service portal, the level of entry is easily accessible to all potential projects. With set allocations of raised ETH and native tokens, liquidity security and crash insurance can be realised on each and every LIFTOFF presale launch.
Why should investors demand that every self-service presale take place on the LIFTOFF platform?
Two words — Crash Insurance. Too often, presales held on other ‘self-service’ platforms are notorious for being scams. When depositing ETH to other platforms, there are a few likely negative scenarios:
— The Project Team simply makes off with your hard-earned ETH, sipping cocktails in the Bahamas.
- The Project Team puts only a small amount of ETH into the liquidity pool, thereby essentially stealing the ETH value from depositors.
— Without permanently locking the liquidity pool, the project team in question may in the future, remove all liquidity; your classic rug pulls in action.
LIFTOFF does away with all these possible negative scenarios. By locking liquidity immediately upon listing, using set allocations of both ETH and native tokens, liquidity pool value is preserved and crash insurance can be offered to investors.
What other benefits does LIFTOFF provide to the LID ecosystem?
Every LIFTOFF presale launch will create two liquidity pools for each XXX token — XXX/xETH and XXX/LID. This benefits both the project and the LID ecosystem. By tapping into the substantial liquidity depth of the LID/ETH and all the LID/XXX liquidity pools, projects are better buffered against extreme swings in price action. With each LIFTOFF launch, the ETH allocated to the LID/XXX pool means market buying LID — this will further increase the LID liquidity pool depth, and add an every increasing price floor to the LID ecosystem.
Through the increasing amount of LID/XXX trading pairs, arbitrage trades will be incentivized to trade within the LID ecosystem. For the average trader, using PenguinSwap for all trades not only reduces Vampire Arb Bot impacts but also has the potential to secure better value trades through the preferred routing tokens LID and xETH.
Audits
In addition, Halborn Cybersecurity is currently auditing the full suite of LIFTOFF smart contracts, as well as the full suite of LID smart contracts. We take the matters of security seriously and have hired the best in the business to ensure our smart contracts are up to the task.
LIFTOFF is set for imminent launch — once launched, it will completely redefine self-service presale platforms.
Links:
LIFTOFF — https://liftoff.eth.link
PenguinSwap Interface — https://penguinswap.eth.link/
PenguinSwap Discord — https://discord.gg/pkmBgQr
Halborn LID contracts Audit — https://github.com/HalbornSecurity/PublicReports/blob/master/Solidity%20Smart%20Contract%20Audits/LID_smartcontracts_audit_Halborn_v1.pdf
Halbron LIFTOFF Audit — https://github.com/HalbornSecurity/PublicReports/blob/master/Solidity%20Smart%20Contract%20Audits/LID_Liftoff_audit_Halborn_v1.1.pdf
Halborn — https://halborn.com/
