An Introduction To Instaraise
Decentralized Finance (DeFi) is booming on Tezos and with that, we’ve seen a lot of projects that have launched their own tokens. These tokens are offered in presales or launched on a DEX. Buying these tokens can be very profitable, but at the same time very risky.
Prices are extremely volatile at the beginning of a token listing on a DEX. There are several factors that can increase the risk of people buying after a DEX listing. (Or for people who do not sell their presale-bought tokens at a DX listing.)
Instaraise offers ways to decrease the risk during these Initial DEX Offerings (IDO) for all parties involved.
On the Instaraise platform, projects can launch their token sale in a transparent and decentralized manner, which gives investors the opportunity to buy into an IDO where the rules of engagement are set in stone in advance through smart contracts. This way, everyone that participates can make a well-informed decision.
The Instaraise platform offers several tools and qualities to improve the transparency of an IDO and to make the process trustless by decentralizing the platform.
One of the main qualities is the fact that the platform offers transparency. All the different parameters are known to investors in advance. And at the same time, these parameters are fixated in decentralized smart contracts, which means that the rules of engagement can not be changed afterwards.
Fixed Swap Pool
In a fixed swap pool, certain important parameters can be set in smart contracts. Things like the fixed token price, softcaps/ hardcaps, maximum investment per address, the amount of investors, and other parameters.
Having a large number of token holders, distributed geographically and demographically, is a key advantage to have as a token project.
Many centralized exchanges will look at the amount and location of token holders as key indicators of whether or not to list a project. Fixed token swap pools can help to ensure that more investors are able to get in on an investment opportunity.
Auto LP Locking
Auto LP locking is an important tool to ensure that a token will have a healthy level of liquidity once it is listed on an exchange. Once the sale is ended the tokens that are dedicated for liquidity provision are added to Quipuswap autonomously through our Smart Contracts.
Additionally, the LP Tokens are locked for a predefined time by the owner. This prevents Rug Pulls where liquidity gets pulled and the tokens become worthless.
Whitelisting of investor addresses
This way single entities are less likely to bypass maximum buy-in amounts. (If they apply to the IDO.)
Instaraise verifies the identities of the team behind the project through a KYC (Know Your Customer) procedure. All the projects listed on our platform go through KYC verification to build trust on the platform and listed projects.
This decreases the risk of an exit scam where an anonymous team holds a presale and cashes in a big amount of funds without the intention to deliver an actual DeFi product.
An important aspect is that the variables that can be set are decentralized. This means that they are predefined in smart contracts. Are there discounts and to who do they apply? Is there a fixed amount of Liquidity reserved for the DEX listing and for how long will thus be fixated?
When will the tokens be distributed and will the distribution be simultaneously for everyone? All these parameters can be fixated in smart contracts and once that’s done, these parameters can’t change. So when investing, you know upfront what you getting into.
You don’t need to trust the IDO team to keep their promises. Smart contracts fix these promises in an immutable manner. Decentralization of the variables makes the IDO trustless.
It’s important to emphasize that projects that use Instaraise can make their own choices as to which rules they want to apply and how they want to set the parameters.
Instaraise offers the tools for a fair launch, but in the end, it’s the IDO project’s team that determines what they judge to be fair for everyone involved and which of the Instaraise tools they want to utilize for their IDO.
A fair setup in a fixed swap pool, for example, can give all investors an equal price, which reduces the risk of a dump by early investors who were able to buy in with a discount.
This brings an IDO investment back to its basics: belief in the long-term success of a project, instead of making a quick buck over the heads of retail buyers. But it’s up to the project team to set up the rules of engagement.
The Instaraise native token ($INSTA) is a membership utility token. It grants holders access to IDO Launchpad deal-flow, information flow, and specific presale rounds.
Staking or holding $INSTA tokens grants holders access to the more restricted projects that are essential “more interesting” or “more popular” or “more exclusive.”
INSTA tokens are also needed as a fee for IDO issuance on the main platform. Instaraise charges a fixed amount worth $500 in terms of $INSTA tokens. This fee will be 100% vested for 2 years and will be used for incentivizing the community.
A variable charge of 4% of the token sale amount will be deducted in terms of the Project Tokens. From that
– 2% goes for the development of Instaraise.
– 1% Swap to $INSTA for 2 years vesting.
– 1% will be airdropped to random 10 users participating in the sale.