Education

GMD Launchpad: Integrating new initiatives into the GMD Ecosystem & Arbitrum

Published

1 year ago

March 1, 2023

Overview

The last few months have seen remarkable success for Arbitrum projects, with some raising millions and seeing favourable token price movement. The defective fair launch approach, in which non-presale participants always acquire at lower prices, has caused losses for early investors. The “fair launch” strategy works well for teams and developers since it allows them to get the most money possible from the market. Nevertheless, even after additional liquidity, the token lacks buy pressure because the majority of the demand has already been satisfied. The low allocation for liquidity is another factor that adds to the short-term loss. The market, therefore, needs a better solution wherein early investors are rewarded for taking on higher risks.

Connecting with potential investors to raise money has proved to be one of the largest obstacles for new projects. Many investors, on the other hand, are searching for high-quality projects to invest in but lack the due diligence/connections to find them early. By identifying, evaluating, and pitching investors on promising new initiatives, GMD Launchpad seeks to close this gap.

Listing Criteria

Due Diligence

Each project that requests to be on the GMD Launchpad will have its due diligence reviewed directly by the GMD team.

The founder, Saul Goodman, will provide them with guidance on tokenomics and the starting and running process to make sure they have a sound strategy before deploying. After the procedure, Saul will also post a review thread about the undertaking for his “degen audience”.

Furthermore, projects on the GMD Launchpad have the option to participate in a coordinated marketing campaign that will promote them to the GMD ecosystem’s users. To identify additional potential synergies, they will also be introduced to GMD’s partners. To start a Liquidity Book market and maybe employ LB management techniques, for instance, they could collaborate with Trader Joe. Alternatively, they can engage with Buffer Finance to build on BLP.

The GMD team hopes to get incentivized in return for rendering support to their ecosystem. This can be a fixed listing fee, a seed investment allocation for the GMD treasury, a token airdrop for holders, etc. This will depend on the outcome of negotiations between the two parties.

As a criterion for bringing projects on board, the GMD team considers projects that:

Are built on GMD
Have benefits for GMD ecosystem participants
Have great tokenomics, code base, and innovative product
Have a viable, solid team

Launchpad Model

The Launchpad will feature a soft cap and a max cap. The token price will increase linearly based on the soft cap’s oversubscription amount after the soft cap has been met, but it will cease once the hard cap has been reached. All pre-sellers will eventually receive tokens at the same price. This approach allows for price discovery when demand exceeds the project’s needs or expectations. It also has a hard cap to assure upside potential for early investors to make up for them taking on greater risks (since they invest before launch).

If Project A has a $2 initial price, a 200k soft cap, and a 250k hard cap, for instance, and the hard cap is filled, the total price would be $2.5k.

This is GMD’s main model. Dutch auctions (Bond protocol), price curves (Mugen), and overflow (Pancakeswap IFO) will be added to the launchpad in addition to these, to accommodate the various needs of other protocols. GMD will assist projects in selecting the model that is ideal for their protocol/tokenomics when they apply to launch on GMD.

How to participate

Each of the sales that lasts for the first 48 hours of a project launch will have two distinct periods:

Priority sales (first 24h)

An allocation will be made to staked GMD, esGMD, and RPs (acquired through staking GMD and esGMD) according to the staked amount. For instance, at a rate of $100 per GMD allocation, someone who stakes 100 GMD will have a maximum allocation of $10,000, whereas someone who stakes 500 GMD, 400 esGMD, and 100 RP (total = $1000) will have a maximum allocation of $100,000.

An open auction (next 24h)

Following the priority sale, if the hard cap is not filled, the presale will open to the general public the next day. Each participant may contribute in any way here. Similarly, if the hard cap for the priority sale was filled

Participants would have to stake GMD or esGMD to have an advantage in the sale.

Withdrawals for the GMD/esGMD stake pool will be halted during the launchpad event to stop users from quickly unstaking after contributing to the sale. For long-term GMD/esGMD stakeholders, this will guarantee fairness. People can still buy and stake GMD to take part in the sale, but they won’t earn as many reward points as long-term stakers, and they’ll be exposed to short-term price volatility risk because they have to lock their stake in the pool for a limited period.

Conclusion

To help onboard initiatives with a high potential ceiling into the GMD Ecosystem and the Arbitrum Chain, the GMD Launchpad protocol was constructed on the GMD Protocol. Through this launchpad, the lack of investors for developers gets eliminated and the lack of projects to invest in by investors is also addressed. Hence, it is a win-win situation for both parties.