L2 Planet Focus: ZkPad
In this Issue of the L2 Planet Focus series, we focused on zkPad which is a launchpad platform on StarkNet.
What is zkPad?
ZkPad is the perfect balance between a decentralized launchpad and a decentralized project incubator.
They believe that these two functions go hand in hand, and that providing support, whether technical, marketing, or financial, shows that they are invested in the projects they launch, that they endorse them 100%, and that they have total confidence in them.
What are the Differences from Others?
On-Chain System: Many of the currently active launchpads determine the winners with the lottery system, but these lottery processes are not transparent. The first thing ZkPad wants to fix is the lack of transparency. In this way, all winners or non-winners will be verified on-chain. In other launchpad systems, if a pre-sale right is acquired, this right cannot be transferred to someone else before the sale. ZkPad wants to change this system as well. Linking their purchasing rights to NFTs gives the opportunity that people who cannot or do not want to participate in the sale can transfer their rights to others. The term transfer here means that you can earn profit from the project you do not want to take the risk of, by selling the pre-sale right on the NFT market.
DeFi: In similar launchpad projects, you need to stake the platform's token solo or by making LP with a different asset in order to gain a certain right to purchase from the platform. Although this method is a logical method to provide liquidity in the pool, it causes low capital efficiency. To eliminate this, ZkPad wants to ensure that the funds are used with maximum efficiency.
Project Security: Most launchpad platforms initially marketing with very high-quality projects, and in order not to keep the platform empty in the future, they agree with projects that have low profitability and may even cause losses for their investors. A dilemma arises here. Should a large number of low-quality projects or a small number of high-quality projects be preferred? In fact, it is not possible to talk about decentralization, as projects mostly refer to launchpad platforms. The purpose of ZkPad is to transparently share incoming project investments with the community, rather than fundraising through marketing. For this reason, ZkPad plans to move forward as a DAO.
Management: ZkPad wants the participants to take part in the DAO it wants to create, not just because they own tokens, but really decide the progress and future of DAO.
Disseminating applicability to the community
Another thing that the team wants to do first is to prevent users from having difficulties by explaining the rollup usage stages in detail. Content about this will be produced and shared in the future.
Risk reduction initiatives
The second point of attention is on certain risk markers. As you know, there are investment capitals that buy pre-sale tokens much earlier than we. In this case, even if it is below the public pre-sale price, the capitals that invest in seeds from a very early stage leave with a profit. ZkPad plans to take on projects in the future, where you can invest seeds in the platform in order to minimize the loss.
Platform Operation
Lottery System
Purchase rights granted for tokens will be stored in the form of ERC721 tokens. Thus, you will be able to easily sell your right through the secondary markets, or if you cannot win the lottery, you will be able to participate by buying an NFT for that sale from the market. This lottery process will be done on-chain and will be completely transparent.
IDO Purchase Rights
A third parameter will be added, 'p', in relation to the staked token amount and the locked time. This parameter can be customized by the owners of the projects to be published on the platform. For example, let's consider an NFT market that has no tokens. This project may set one of the parameters as making a retrospective purchase/sale on its own platform. The more people who meet the requirement of the 'p' parameter in the non-customized form of the formula, the lower the bonus it gives during the token purchase process, thus preventing the unfair-bonus distribution.
Class System
ZkPad has set up a tier system where you win lottery tickets based on locked amounts. If you do not want to participate in the lottery, you can lock +25,000 tokens and have the right to buy a guarantee.
In future plans, it is planned to switch to a different system by making improvements for the security of user information.
Governance
The governance model is based on Curve's governance system. Your management rights will vary depending on the amount of tokens you have locked and the duration of the lock. The two main purposes of the DAO will be to guide future projects and to manage locked funds.
Educational Contents
ZkPad's sole purpose will not be to offer a profit to its investors. In addition, some rewards will be given to people who contribute to the community. In this way, it will be possible to produce content in various languages and subjects.
Market Strategy
ZkPad's initial target audience is rollup users who already have some basic knowledge. The project wants to deploy itself on different networks in the future, maybe even on CEFI. Incentive rewards and airdrops will be some of the methods ZkPad will use to contribute to this process.
Tokenomics
The $ZKP token is at the centre of the ZkPad ecosystem, as it allows you to obtain lottery tickets, participate in vault strategies by staking tokens in their vaults, and also participate in DAO decisions.
Nevertheless, it is important to specify some information. The $ZKP token is stakable in their vault in order to participate in IDOs and to participate in governance. When you locate the token in a vault, you get a representation of this staked token, which is the $xZKP, and which is the image of the tokens you have locked in the vault. This token is illiquid and is only meant to represent the $ZKP you have locked while allowing you to have access to the rest of the ZkPad ecosystem (Governance, lottery tickets...).
Team tokens will be unlocked with a 2-year lock. In the future, the team, which wants the token percentage in circulation to be low, will put all the tokens sold in the public sale into circulation. It is planned to take two years for the entire token amount to circulate.
That’s all from L2 Planet for now, hope to see you in other issues :)