2. POTATOCHIP
Intro
Over the past year, Decentralized Finance (DeFi) has emerged as the
backbone of the developing industry known as blockchain technology; as
we’ve seen many companies start successful launchpads or incubators that
are presently expanding the ecosystem of growth products.
Recently, the rise of Initial Decentralized Offerings (IDO’s) have led to many
affordable, as well as exceedingly profitable opportunities, as the initial
investments from community members have been the driving contributions to
well-performing projects and protocols.
Decentralized venture capital is an innovative system of funding effective
infrastructure, along with gaining accessibility to supporting a tremendous
field of digital asset services.
Our service provides projects with a trusted platform to gain the deserving
notoriety and an appropriate surrounding community. IDO’s are in an uptrend
of demand since the growing support of new projects is extremely difficult to
accommodate across the entire market.
A simple solution is to allow start-up projects to be affiliated with other
companies, allowing for an overall better chance of success when opening up
the various opportunities of cross project collaborations. Unfortunately, there
have been many occasions of numerous DeFi projects, soaring in popularity,
when collaborating with meaningless “deals” or “partnerships'' with an
assortment of other protocols or projects.
This emphasizes a vital importance upon credible incubators, and how they
are widely different from the typical fashion of “partnerships” described
above, since the most trustworthy, and secure incubator projects have
winning track records of only supporting high quality projects.
3. POTATOCHIP
How are we unique?
We aim to take on and defeat three main launchpad issues:
In recent months, there has been much news about numerous projects creating
launchpads, establishing significant hype upon IDO’s, as early advocates in
these projects have been able to receive generally profitable allocations. The
IDO craze is sadly diluting the market potential, and comprehensively the
ecosystem’s mass-adoption, since arising propaganda is relating these
unfolding events to the infamous ICO craze of 2018.
Launchpad platforms require users to spend
thousands of dollars on a “membership” service,
even though the project’s adoption hasn’t even
reached a respectable percentage of its possible
market valuation yet. Granted, these tokens have
the availability of being sold at any time, but this
restriction still provides a high fence for people who
do not have or want to spend high amounts on a
single investment that is rather a risky, outcome
oriented service.
This is DeFi, decentralized protocols must be
implemented. The community must be able to vote
on projects, thus PotatoChip’s platform aims to be
consulted by the community and conducted for the
community. As a result, it would be the first truly
decentralized venture capital fund enabled by
advantageous blockchain technology.
We have seen several platforms release ill-advised
pre-sales that occur multiple times in a given week.
The outcome of these projects result in unforeseen
amounts of large market volatility as soon as they
are released, producing growth that isn’t
sustainable for an organic community since the
community becomes highly aware of a project that
is predominantly controlled by pre-sale personnel.
Removing the industry normality of
community member’s high buy in prices
Community governance that is built
for long term growth
Project quality that is focused on
a sustainable community
Credibility Longevity
Security
This damaging comparison makes our entire team cognizant of the underlying
reality that our project needs to be the launchpad platform that breaks away
from the industry stigma that surrounds some of the issues regarding
credibility, security, and longevity.
4. POTATOCHIP
Instead of fixed rates the fund should be
run like a liquidity pool.
A driving force behind decentralized finance is the concept of liquidity pools.
Liquidity pools reward supporters of the project based upon a percentage of a
pool, due to what the direct address is currently providing, in regards to
providing liquidity in the form of the project based tokens.
For example, the current IDO model shows that in order to take part in a token
allocation, one must hold a fixed rate of tokens. In this model we will assume
that PotatoChip is running a fixed rate token allocation.
The wallet that holds 15 PotatoChips reserves the right to swap 0.3 Eth for
Allocation A’s rate.
This is a truly decentralized fund that allows all members a piece of the pie.
Allocation A: Requires 15 PotatoChips
15 PotatoChips(CHIPS) = 0.3 ETH worth of Token Allocation
Current IDO model
Allocation A has 10 Eth worth of A tokens they would like to presale
PotatoChip holder owns 1000/100000
PotatoChips (1%) so his allocation for the sale allows him .1 Eth
Open Community Investments: OCI
Allocation
5. POTATOCHIP
We call this new allocation model a Open Community Investments or OCI. A
OCI is a group of wallet holders who collectively make up a large fund and
provide a jumpstart to an early stage project. We also believe this model
incentives less volatility between sales. Most IDOs tokens see large price
climbs and dips before and after projects. The OCI model leads users to buy
up a large share of the pool when the price of CHIPS has a lower average of
demand.
This pool provides a way for tokens to do full launches on the platform as well
as just partial launches. The current state of IDOs only allows for partial
launches which leads to the pumping of the token as well as large sell offs.
Our model allows for accumulation and hopefully fandom of the OCI. Instead
of a jump between tiers a holder can slowly accumulate more of the
allocation pool. The other benefit to this is that start-up projects are generally
valued by three different metrics and we aim to provide a platform for each of
these metrics.
Team and Trustworthiness
Market Capitalization & Liquidity
Wallet Holders
1.
2.
3.
Open Community Investments
6. POTATOCHIP
We aim to only bring on projects per bi-monthly
basis. This allows for fully vetted project’s,
maintaining a necessary standard of quality for the
community.
This emphasizes a support system of innovative
and contemporary teams, preferably associated
with Substrate and the Polkadot ecosystem.
A key metric or tactic of fundamental analysis for
investors is the ability to judge the popularity of a
project upon the amount of total wallet holders.
Ineptly, the current model of IDO’s only allows a
certain number of wallets to gain access to a token.
Our OCI model is a more attractive approach for the
entire ecosystem of emerging projects because it
has no limit to the number of holders. PotatoChip
has a OCI model based approach for equitable pre
sale allocations, which will result in our platform
potentially giving access to thousands of significant
wallet holders for start-ups teams, creating a
relevance of user base driven data for
projects/protocols to access on day one.
An important metric is project based ability of
sustaining consistent market cap growth. Using our
particular launchpad system or OCI infrastructure,
presale accommodations are given to a larger
number of wallets for a given project, reducing the
expected presale dump and severity of volatility,
compared to the industry standard model of
pre-sales that allows for only a relatively few
number of wallets holding the majority of presale
tokens.
Ideally, this will help with our fundamental value of
helping to launch tokens that have a trajectory of
long term success by focusing on the future of
finance.
Team and Trustworthiness Wallet Holders
Market Capitalization & Liquidity
Open Community Investments
1. 2. 3.
7. POTATOCHIP
Presale allocations
Presale allocations will give holders the option to spend their ETH or USDC
on a brand new project's discounted rate or presale. The presale will be
determined by the PotatoChip team and the client’s team and the terms will
be mutually beneficial for the client project and CHIPS holders.
OPT IN
CHIPS holders will receive their purchased coins at launch and then can
choose what to do with these tokens as soon as they hit their Web3 wallets
(Metamask, etc..).
OPT OUT
CHIPS holders that choose not to partake in a funding round before the
investment window closes will have their pre-sale allocation added to a pool
of remaining tokens which CHIPS holders can access the day (EST) after the
pre-sale closes. This pool is nicknamed the ChipBag.
• Ex. CHIPS holder opts out of pre-sale. They hold 10/100 CHIPS (10%) so
they could purchase 10% of the presale tokens. However, they elect not to.
Now, their 10% will be equally split among the other CHIPS holders (for this
example there are only ten CHIPS holders that each hold 10% each)
• 1000 ETH available in pre-sale
• (.10)(1000) = 100 ETH
• = additional = 11.10 ETH in ChipBag for each CHIPS holder
(These numbers are simplified for sake of clarity)
~
9 Wallet Holders
100 ETH
This provides two token sales to those who want to take part in a pre-sale.
The second one will always be in addition to their first and the pre-sale will remain at the same price throughout both sales.
8. POTATOCHIP
Liquidity Provision Rewards
Subscription Service
CHIPS LP token holders will have the opportunity to subscribe.
A subscription consists of a locked LP period depending on the length of the
subscription. Locked LP holders will receive benefits such as discounted
rates for pre-sales. Keep in mind we aim for bimonthly - monthly sales
depending on quantity and quality of projects available.
Ability to prepay for future sales in USDC rather than ETH:
• Pay for three, six or twelve months at discounted rates.
• USDC payments allow holders to hold onto ETH since the time value of
Ether is much higher than the time value of USDC.
PotatoParties
LP token holders (subscribers / non-subscribers) will be eligible for
PotatoParties which are surprise airdrops from PotatoChip governance.
