The explosive growth of the Blockchain industry and the Cryptocurrency market has resulted in unfair fundraising methods by start-ups, sidelining non-elite investors and leaving them exposed to Rug pulls and Crypto Scams, while the industry still battles with scalability, liquidity, and impermanent loss. GrailPad aims to serve as a one-stop accelerator to accelerate the growth of new blockchain projects while exposing investors to fair investment opportunities in verified blockchain projects and an Automated Market Maker to create sufficient liquidity without impermanent loss.
IDOs became the new order as blockchain start-ups raised funds openly and fairly with easy access to liquidity and quick exchange listings for traders. Raven Protocol, a distributed and deep learning protocol on Binance DEX was the first Initial Decentralized Exchange Offering (IDO) raising $500,000 in less than 1Second on the 17th of June, 2019. The advent of IDOs made it easy for Blockchain start-ups to raise funds but also came with its downside. We have determined issues in 4 general categories:
1. Control Issue: Exchanges are not entirely in the interest of the IDO model hence, give less control over the fundraising to the project owners. This lack of control causes the following problems:
· The price of the token starts moving high after the very first swap.
· Only the tech-savvy and quickest investors can invest since it is a first-come, first-serve model, leaving room for Bots to dominate the offerings.
· Big investors (whales) can buy large quantities of tokens during an offering, which gives them manipulative powers over the token.
· There is no way to identify investors during IDOs as there is no Know-Your-Client (KYC) registration during the process.
2. Price Manipulation: Investors use Bots to manipulate the IDO price by buying large quantities of a token since it uses a first-come, first-serve model. These investors have large quantities of tokens and can manipulate the token price upon listing on an exchange for traders.
3. Liquidity Scams & Rug pulls: Investors are left to decide on their own whether to invest in a token project or not. This pressure of quick thinking often leads to wrong decisions, especially for non-crypto investors. Scammers can list their genuine-looking tokens, gain some liquidity and sell off all the tokens, leaving investors with worthless tokens or no liquidity to sell into. Liquidity scams and rug pulls pose a big threat to the cryptocurrency market.
4. Listing & Liquidity Issues: Most start-ups who raise little funds find it difficult to list their tokens on high liquidity exchanges due to the high cost of listing hence, face the issue of insufficient liquidity.
How GrailPad eliminates these inefficiencies?
GrailPad will solve these inefficiencies via four (4) ways:
- A next-generation Accelerator.
- A multi-chain LaunchPad.
- A multi-chain AMM DEX.
- A multi-chain Bridge.
A Next-generation Accelerator: GrailPad’s next-generation accelerator is a futuristic accelerator that will catalyze innovative and emerging blockchain startups, serving as a one-stop accelerator for accelerating the growth of new blockchain projects. GrailPad accelerator Program includes tokenomics (Token distribution, incentivizing positive behavior in the network, and coordinating the Token Generation Event), Business Development, and Operational Support (Supporting start-ups in terms of technical developments, marketing, whitepaper development, team mentorship, and more), Networking and Counsel (Venture Capital Roadshow, Strategic direction on connecting with influencers, private investors, public raise, exchanges, among others). GrailPad’s next-generation accelerator would also aid start-ups in Creative Direction (Guidance on website development, graphic design, and marketing materials like staking, farming, and vesting), Secure Escrow Lock-up (Keeping of raised funds in a Secure Escrow via a Custodian Contract. Funds are released only after the project achieves its set milestones).
A multi-chain IDO LaunchPAD: GrailPad’s multi-chain IDO LaunchPAD will function as an IDO platform for investors to join exclusive initial decentralized exchange offerings. GrailPad multi-chain LaunchPAD will allow blockchain developers and start-ups to easily launch tokens built on any chain. GrailPad multi-chain LaunchPAD would allow investors to participate in fair, secure, and guaranteed Initial Decentralized Exchange Offerings via its allocation methodology. Investors simply hold a required amount of $GRAIL tokens and take part in the whitelisting process to be guaranteed an allocation in the IDO.
A multi-chain AMM DEX: GrailPad’s Multi-chain Automated Market Maker (AMM) Decentralized Exchange is a blockchain-based liquidity protocol that would aggregate liquidity from a wide range of reserves, powering instant and safe token exchange in any decentralized application. GrailPad Multi-chain AMM DEX would provide new and already existing blockchain projects, access to the most liquidity, lowest slippage, best exchange rates across the entire Defi and crypto industry, and also give insurance for its liquidity pool providers. GrailPad Multi-chain AMM DEX is a liquidity infrastructure for the decentralized finance industry, aggregating liquidity from diverse sources into a single liquidity pool, which would be an end-point for automated market-making against a smart contract, providing the best rates for takers such as DApps, Wallets, DEXs, and End-users. This would enable users to perform their asset trades seamlessly on several blockchains from a single interface, in a non-custodial way with full on-chain transparency and instant transactions.
A multi-chain Bridge: GrailPad Bridge Tokens are specialized tokens that can be transferred rollup-to-rollup in batches and act as intermediary assets in the GrailPad platform. Each GrailPad Bridge Token represents a deposit in the GrailPad Bridge contract. For example, if 4 ETH are deposited into the GrailPad Bridge contract, 4 GrailPad ETH can be minted from GrailPad Bridge contract. Inversely, a GrailPad Bridge token can be redeemed for its underlying asset, which burns the GrailPad Bridge Token being redeemed.
A GrailPad Transfer includes the following information:
· Destination chain ID — The chain ID of the rollup or layer-1 destination
· Recipient — The address receiving the Transfer at the destination
· Amount — The amount of token being transferred
The Transfer may also include additional information for convenience functionality. For example, it may specify a relayer fee to allow a transaction relayer to withdraw the Transfer at its destination on behalf of the user. A future version of the GrailPad Bridge that handles multiple tokens would also require a token identiﬁer to be included in the Transfer data.
A Transfer Root represents a bundle of Transfers with minimal data. Each Transfer Root is composed of:
- A Merkle root of the Transfers
- An array of each unique destination represented by its chain ID
- An array of total amounts being sent to each unique destination
A Transfer Root can contain thousands of Transfers yet be accounted for as a single bundle. This alleviates bottleneck and allows a large number of transfers to be passed through layer-1 to their destination rollups in a scalable way. However, propagating a Transfer Root through layer-1 can be a slow process. This is primarily due to the exit time of the rollup that the Transfer Root originated on. In order to fulﬁll Transfers immediately, an external party can provide up-front liquidity on the destination rollup for a small fee, as described in this next section.
The Bonder can verify that the Transfer was made on its origin rollup by running a veriﬁer node for the rollup. The Bonder can then provide up-front liquidity on the destination rollup in order to fulﬁll the Transfer immediately. Eventually, when the Transfer has reached its destination, the Bonder’s funds are restored.
The Bonder may take a small fee in exchange for locking up liquidity while the Transfer is propagating through the system. The immediate liquidity provided by Transfer Bonds and scalability achieved with Transfer Roots enables GrailPad Bridge Tokens to be quickly and economically moved from rollup to rollup.
All of this above will be underpinned by the $GRAIL token. $GRAIL token holders will be able to, amongst other things, stake tokens, act as an arbitrator, provide liquidity. Additionally, and unlike many protocols, $GRAIL is envisioned as a profit-generating token that will return value to its stakeholders. Revenue generated through the platform will be partially distributed back to core stakeholders, being used to burn tokens and being sent to holders proportional to holders. The remaining balance will be sent to the treasury for ongoing operating expenses and impermanent loss protection.
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