Poolz

November 06, 2020

Poolz

Overview

Poolz is a decentralized, Layer-3 swapping protocol enabling startups to manage liquidity auctions, thus bringing them closer to early-stage investors and liquidity miners.

As blockchain-cryptocurrency innovators are looking for decentralized, censorship-resistant ways of fundraising, there has been an emergence of Initial DeFi Offering (IDOs) and Initial Liquidity Offering (ILO). Furthermore, given the rise of Automated Market Makers (AMMs), a token’s liquidity has become a crucial determinant of its market price.

Although the market is becoming more competitive and value-oriented, early-stage innovators are facing unprecedented challenges due to these fast-paced changes. Prior to listing, they now have to seek liquidity investments for their tokens. In turn, however, the scenario presents new opportunities for early-stage investors, facilitating higher and more secure returns through liquidity mining.

Poolz's Market Opportunity

Decentralized Finance (DeFi) has been consistently gaining popularity for almost a decade, and presently, we are witnessing the much-awaited adoption boom. Driven by the rise of decentralized exchanges like Uniswap, as well as several promising dApp solutions, the market has grown by over 1000% since 2019. At the time of writing, the total DeFi market capitalization is over $16 Billion.

Despite the popularity, however, the adoption drive is still facing some obstacles.
Blockchain-cryptocurrency startups need to bootstrap liquidity, in order to ensure profitable trading prices on DEXs and other AMM-based platforms. In this context, there is a rising demand for decentralized, integrated, cross-chain ecosystems that enable project owners to easily and securely conduct pre-listing liquidity auctions.

In turn, this represents a long-term business opportunity and market scope for layer-3 swapping protocols like Poolz.

The Poolz Ecosystem

Broadly, there are two categories of Poolz users. One involves the Project Owners or Pool Creators, while Investors or Liquidity Providers (LP) comprise the other. In this section, we discuss available pool types, the user flows, pool states, and Poolz’s governance model.

Types of Pools

Direct Sale Pools (DSP): These are pools without any lock-in period, where investors get the token immediately after the swap.

Time-Locked Pools (TLP): These pools have a predefined lock-in period and investors receive their swapped tokens only after the completion of this duration. Poolz’s smart contract will also enable pool creators to define custom lock-in periods, thus releasing the swapped assets incrementally. For instance, say, disburse 40% of the swapped tokens immediately and, after say 1 month, the remaining 60% in 6-equal monthly vesting.

Pool Status

Created: the pool is exclusively available for POZ token holders.
Open: the pool is available for all Poolz users.
Out of Stock: the predefined supply of auctioning tokens has been sold-out, but the pool’s duration has not ended. In the case of TLP, tokens will be locked for the remaining duration.
Finished: the pool has reached the end of its stipulated duration. Both for DSP and TLP, the leftover tokens are returned to the PO’s wallet at this point. Investors, on the other hand, get their tokens purchased (swapped) through TLP.
Closed: the pool is complete and tokens have been duly disbursed.