We are thrilled to announce that after a long journey of development and refinement, the launch of Liquid Crowdloan is just around the corner! The exact date will be revealed soon, but we couldn’t wait any longer to share this exciting news with you.
What is the Liquid Crowdloan?
The Liquid Crowdloan is an innovative fundraising mechanism developed by the Algem team. It combines the goals of traditional fundraising methods like ICOs, IEOs, and IDOs with the more modern and equitable approach of lockdrops and crowdloans.
Unlike ICOs, IEOs, and IDOs, users do not need to invest their tokens, they only lend them for 6 months and then receive them back in full. The only risk here is the opportunity cost.
Participants lock their ASTR tokens in the Liquid Crowdloan smart contract and receive liquid tokens (aASTR) which provide flexibility and additional earning opportunities within the DeFi ecosystem in return as rewards. Users also receive Algem’s native governance tokens, ALGM.
In addition to rewards, the Liquid Crowdloan offers an eco-friendly way to support the development of projects and the entire ecosystem without risking one’s own tokens. This approach not only secures necessary funding for projects but also promotes a sustainable and participatory financial environment.
Why the Liquid Crowdloan matters
The Liquid Crowdloan represents a new era in project financing, made possible only on Astar Network. This innovative product is designed to revolutionize how projects are funded, offering unique advantages and opportunities that set it apart from traditional methods. The Liquid Crowdloan ensures a fair distribution of ALGM tokens among all participants based on their contribution size. This product not only secures project funding but also integrates community participation and rewards.
Key mechanics
Let’s recap the core mechanics of the Liquid Crowdloan briefly below:
Locking ASTR tokens:
- Users participate by locking their ASTR tokens in the Liquid Crowdloan smart contract.
- In return, participants receive an equivalent number of aASTR tokens.
Staking rewards:
- The locked ASTR tokens are directed to the Astar Network dApp Staking module, generating staking rewards for the Algem team until the expiration date. These rewards are used to fund the team’s operations such as salaries, security audits, promo campaigns and so on.
ALGM rewards:
- At the end of the Liquid Crowdloan event, a snapshot of user balances is taken and ALGM rewards are distributed through a vesting smart contract over six months.
Liquidity and flexibility:
- Liquid aASTR tokens can be sold at any time without losing ALGM rewards.
- After six months, the underlying ASTR can be claimed by any aASTR holder.
For a detailed explanation of the Liquid Crowdloan, please refer to the full product description in our whitepaper (6 languages available!).
The benefits of participating in the Liquid Crowdloan
- Risk-free opportunity: Liquid Crowdloan introduces a riskless opportunity to acquire ALGM tokens, with the only associated risk being the opportunity cost.
- Open participation: Every user can participate in the event without needing approval and KYC is not required.
- Additional rewards: Liquid aASTR tokens can be used to earn additional rewards on various DeFi dApps until the expiration date.
- Market dynamics: The price of aASTR tokens will be determined by market forces and is expected to be lower than the underlying ASTR price, creating time-arbitrage opportunities for external aASTR buyers.
- A referral system that rewards both referrers and referees.
- Other exciting rewards and benefits will be revealed shortly! 😎
Pre-launch campaign
The pre-launch campaign will span over four weeks, each dedicated to a specific theme:
Week 1: Introduction to the product
- Get to know the core concepts and benefits of the Liquid Crowdloan.
Week 2: A comparison with other fundraising methods
- Understand how the Liquid Crowdloan stands out from ICOs, IEOs, and other methods.
Week 3: The economics of the ALGM token
- Learn about the strong tokenomics of ALGM, our upcoming products and how ALGM tokens will be used in these products.
Week 4: A final countdown
- Detailed instructions on how to participate, campaign parameters, reward pool, and overall timeline.
Each week offers you the chance to participate in shaping the final product and the chance to win rewards in the process, through engaging contests.
Conclusion
Stay tuned for daily updates and get ready for an exciting four weeks leading up to the launch of the Liquid Crowdloan. Join us on this journey to be part of the future of project financing!
About Algem
Algem is a decentralized application built on the Astar Network and offers two main features: liquid staking and liquid farming. As their names suggest, these two options let ASTR holders keep their assets liquid while putting them to work. Also, the liquid staking and farming solutions let users use Algem’s liquid nASTR tokens across Astar’s Defi ecosystem to earn staking rewards and make more money. In doing so, Algem supports other Defi protocols by providing liquidity and creating a sustainable and cooperative ecosystem on the Astar Network and Polkadot.
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