Launchpad v1 (WIP)
Work in progress BIO Launchpad V1 description
Last updated
Work in progress BIO Launchpad V1 description
Last updated
The goal of the BIO Launchpad is to allow the BIO community to decide on which DAOs it would like to be included to launch via BIO Launchpad and receive the support from the Bio community. Additionally, it aims to supply the DAOs with the first capital and provide deep liquidity for efficient markets after the launch.
The BIO Launchpad has three distinct phases:
Curation: This stage decides if a project will be allowed to launch via BIO Protocol
Acceleration: This stage allows a project to raise its first funds from users.
Separation: The final stage releases the project into the open market supported by liquidity pools
In the first stage users get the chance to signal their belief in a specific BioDAO. The curation stage also functions as a filter allowing the community to filter which projects they would like to be launched via the BIO launchpad
BIO holders are able to pledge their BIO tokens in return for the future BioDAO tokens that will be unlocked once the curation period is successful.
The BIO collected by the BioDAO within this stake will be eventually be used to seed a liquidity position when the BioDAO migrates to the final stage of the launchpad: separation.
A whitelist function allows projects to determine whitelisted community members that are able to participate in the curation before the full BIO community gets to signal their support.
At the end of this phase, BIO curators receive their unlocked BioDAO tokens, and the bioDAO receives locked BIO tokens. When the BioDAO graduates to the AMM, these BIO tokens are paired with BioDAO tokens and locked in a liquidity pool, where the BioDAO earns fees.
This is the initial raise for the BioDAO. Immediately after a successful Curation process, any user can buy or sell BioDAO tokens with ETH into this sale mechanism (bonding curve).
Users can then buy and sell BioDAO tokens into the bonding curve using ETH, where fees are accrued to the BIO Protocol. The BioDAO tokens are parameterised such that they can only be traded in the bonding curve until AMM migration occurs, and that the BioDAO will migrate to the AMM when the graduation valuation is hit.
This mechanism doubles as another layer of curation as free-market forces determines if a BioDAO should raise or not. If the market does not believe that a DAO should receive funding, the BioDAO will not hit the graduation valuation and remain on the bonding curve. The way the market shows their belief in a BioDAO is by the FDV reaching the graduation price.
The mechanism allows the market to determine if a BioDAO should raise funds, where a successful graduation from the curve results in a migration to the AMM.
When a graduation occurs, the ETH raised in the bonding curve accrues to the BioDAO as a fundraise, and the BioDAO has it’s locked BIO paired with their native token and supplied into the AMM to provide liquidity.
In the case where BioDAOs do not reach the graduation price during this phase, they remain on the curve until a maximum duration of 1-month is reached. If this 1-month time is hit, the BioDAO auto-graduates from the bonding curve, retaining any ETH raised, and transitions to the AMM.
BIO Protocol accrues fees earned during this Bonding Curve period.
Once the Curation is completed, the BioDAO may go into an Auction for an initial sale.
This sale is similar to the Tokemak Degenesis Sale, lasting for 7 days.
Users can deposit and withdraw ETH into the Auction during this period.
There is a reserve price the Auction much reach (based on a minimum raise requirement) to close, and a maximum price that the auction will automatically close at if reached.
Once this period closes, with Auction participants all receiving BioDAO tokens at the closing price.
If the reserve price is note reached during this preiod the process reverts, funds are returned and BIO Bonders are able to reclaim their BIO.
This is the final phase of the launchpad, where the BioDAO graduates from the Sale phase and the BioDAO token becomes freely tradable on an AMM.
The ETH accumulated in the bonding curve or auction sale goes to the BioDAO, providing funding.
The bonded BIO earned during the initial curation phase is paired with BioDAO tokens and locked into a liquidity position for bioDAOs to accrue fees on.
The BIO Protocol may also decide to provide concentrated liquidity on this position by using its allocation of BioDAO tokens, as well as it’s own BIO treasury. The BIO protocol is able to fund this BIO requirement by using bonding curve fees to buyback BIO.
