For decentralized finance (Defi) to cross the tipping-point of mass adoption, there must be a solution able to house multiple blockchains under an interactive umbrella, independent of custodial supervision. Such solution will also serve multiple cross-chain interactions, like crypto exchanges.
While there are some token swapping protocols in the Defi space, executing this already; they, however, do not make provision for early-stage projects and are limited in cross-chain exchanging.
In this post, we are officially proposing Poolz for the first time, as a liquidity pool exchange, adopted for both early-stage liqudity provision, as well as, for existing tokens and eventually for cross-chain token exchange.
So, if you are on the lookout for enough liquidity to bootstrap your Defi token-based project, or a safe place to invest in early-stage Defi startups, or you are just here for learning purposes, you most likely will be getting more than you expect.
Rethinking Initial offerings with Defi
Since the rise of Defi protocols, decentralized exchanging (DEX), via liquidity pooling have been gaining alot of traction. When compared to centralized exchanges, however, dex protocols seem very limited in what they can execute. A good example of this limitation is with initial startup funding and market entry liquidity.
ICOs and later IEOs use to be the best solution for entry funding and market liquidity. Unfortunately with the trust issues, saturation of ICOs and IEOs and the high cost of listing as well as executing successful IEO, low budget innovators, with prospective solutions are finding it impossible to get that minimum required funds to reach the required critical mass for scaling.
On the contrary, our vision with poolz is to take the liquidity pool rationale a step further, into unlocking the possibility of liquidity pooling for blockchain startups in need of funding and that initial market entry liquidity and to do this across all open blockchains.
Today we are very excited to share the Poolz vision with you. With poolz, we envision a trustless crypto market, which offers prospective startups, unbaised access to a willing and liquid market, able to get the project of the ground. By extension, this takes away the need and cost for ICO and IEOs, as well as the regulatory requirements that follows.
While there are several pioneering platforms offering liquidity pooling opportunities, the idea with Poolz is to make liquidity pooling available for the pre-listing phase of the project, and for existing assets too. So it takes out that initial barrier to entry hurdle suffocating great solutions without the means for a grand market entrance.
How Liquidity Pools Work
(Skip to the next section, if you already understand Liquidity Pools!)
Traditionally, the process of providing liquidity to a market is through market making. This is where selected high volume market players, provide liquidity at a discount in their favor. However it comes with custodial limitations and monopoly problems. Sadly, this is the method been used by centralized crypto markets.
On the contrary, liquidity pools, rely on automated market making, executed by the Poolz protocol. In this situation, any willing party can play market maker and get to purchase tokens at faries discount and still get rewarded by the protocol. What is more, this comes with the trustless protection of a Defi protocol.
An Overview of the Poolz ecosytem operations
Poolz is built as a DAO protocol on ethereum, and the premise of the Poolz operations and governance is that, the community gets to decides how governance and operations will evolve, going forward. So even though our team get to set the initial operations, the community still gets to decide how it eventually evolves.
Please note that, this overview is not an exhaustive representation of the overall Poolz operations. That will be available in the litepaper. What is captured here is a brief summary of the its operation:
- Poolz (POZ) token: this is an ERC-2O token, since Poolz is deployed on Ethereum. It will be used for incentivization, to pay for developmental cost goin forward and governance requirements. Also, POZ holders get to be discounted with pool entry and simply for being holders of POZ, so you get to earn more POZ for having POZ.
- Pool Type: there will be two pool types on Poolz, which is the direct sales pool (DSP), where the tokens are received by the investor, imediately after a swap, and the time-lock pools (TLP), where the pools have a lock-in-period, before the tokens are released to the investors.
- Poolz Market Players: There are two categories of players in the market, which are the liquidity providers (LP), technically the market makers, and those in need of the liquidity or Pool creators.
- Pool rule makers: every pool on Poolz come with basic rules and the pool creators, which are usually the project owners, for new tokens, get to set the rules. The parameters for this rule includes choices like: relevant blockchain protocol and wallet for the swap, pool type, pool duration (in the case of a timelock pool,) available token for the pool or auction, the swapping ratio and several others.
- Planned Improvements: as an eventual milestone in the poolz functional agenda, there will be a cross-chain token transfer implementation, at a later stage of its developmental roadmap. This will allow for non-ethereum tokens to be swapped by the poolz protocol.
Our LightPaper, including private sale details are going to be released soon, as we plan to move deftly and hope you’ll come along for the ride.