[ANN]🚀DeFiStarter - Fundraising Platform Powered by Zero Risk Liquidity Mining!

DeFiStarter is a decentralized crowdfunding platform powered by the game-changing Safe Pool Offering algorithm (SPO). It ensures zero risk liquidity mining. All participants of the SPO will be able to get tokens of the startup without purchasing them directly, all that is necessary is to provide reliable and proven tokens to the liquidity pool.

Fundraising In The Past
Do you remember the times of the ICO boom, when “weak” ideas raised millions of dollars of investments? The ICO fever in 2017 demonstrated a very high-risk environment for individuals wanting to participate in token releases of new blockchain projects. As a result, over 80% of all ICO ceased to exist after selling their tokens, leaving the void in investors’ wallets.

Yield farming and liquidity mining have become popular among DeFi startups recently, but, just as it was with ICOs, direct risks associated with token value of the startup are on the investors’ side. Participants of such liquidity mining risk being left without the initial investment and with useless tokens in their pockets.

Our Approach
DeFiStarter offers a way to reduce investors’ risks to zero, and to allow startups to raise financing without directly selling their tokens. For these purposes, the Safe Pool Offering Algorithm comes into action and ensures zero risk liquidity mining. All participants of the SPO will be able to get tokens of the startup without purchasing them directly, all that is necessary is to provide reliable and proven tokens to the liquidity pool. Now let’s take a look at the algorithm by the example of the Balancer pool.

Step 1: DeFiStarter deploys a smart contract where a startup places its tokens, which will be distributed as a reward among those who provide liquidity to the Balancer pool.
Step 2: A user who is ready to participate in an SPO places liquidity (50% DAI and 50% USDC as an example) in the specific Balancer pool.
Step 3: Balancer mints BPT tokens of the pool to the user.
Step 4: User places BPT tokens on a DeFiStarter smart contract.
Step 5: Balancer calculates the reward in BAL tokens.
Step 6: BAL tokens are passed to the startup.
Step 7: Startup tokens are transferred to the user.
Step 8: User takes BPT tokens and can take back their liquidity + Swap Fee of the Balancer pool.

This scheme allows startups to raise funds for the launch, while investors can get tokens without buying them directly.

SPO Providers
DeFiStarter is based on Balancer as an SPO pool provider with the most compelling conditions for liquidity mining. However, later on other reliable projects such as Compound, AAVE, UMA etc., can also be used as SPO providers.

Rewards Distribution
The distribution of startup token rewards is subjected to the following rules:
Rule № 1:
During the lifespan of an SPO, rewards are distributed daily to those users who are currently staking their BPT tokens.
Rule № 2:
The amount of total daily rewards depends on the lifespan of a pool and the total number of tokens the startup has in it.
Rule № 3:
The rewards are calculated in proportion to the shares of the total number of BPT tokens staked at the time the distribution algorithm was launched.
Rule № 4:
If at the moment of the distribution there are no BPT tokens on the smart contract, the rewards for that day remain unallocated.
Rule № 5:
After the end of the SPO, all unallocated rewards shall be returned to the startup.

Let’s take a look at a few examples:
Example 1:

An SPO pool contains 30 AAA tokens of the startup. The lifespan of the pool is 3 days. Therefore, 10 AAA tokens will be distributed daily.

Day 1: On the first day, Alice staked 2 BPT tokens, and Bob staked 1 BPT token. Smart contract will distribute 10 AAA tokens: 6.66 AAA tokens will be assigned to Alice and 3.33 AAA tokens will go to Bob.

Result:
If the users did not take any additional actions in the following days — after the SPO ends Alice will be rewarded with 20 AAA tokens, and Bob will be rewarded with 10 AAA tokens, in proportion to their shares in the pool.

Example 2:

There are 30 AAA tokens of the startup in an SPO pool. Lifespan of the pool is 3 days. Therefore, 10 AAA tokens will be distributed daily.

Day 1: Alice and Bob staked 1 BPT token each. There are only 2 BPT tokens in the pool. Alice was rewarded with 5 AAA tokens, Bob was rewarded with 5 AAA tokens.

Day 2: Alice withdrew her 1 BPT token. There is only 1 BPT token that belongs to Bob in the pool and he will be rewarded with all 10 AAA tokens.

Day 3: Alice staked 3 BPT tokens. There are 4 BPT tokens in the pool now. Alice received 7.5 AAA tokens, Bob received 2.5 AAA tokens in proportion to their shares in the pool.

Result:
After the end of the SPO Alice got 12.5 AAA tokens, and Bob can withdraw 17.5 AAA tokens.

DFST Tokenomics
DFST token is DeFiStarter’s native ERC-20 token. DFST token allows holders to be involved in protocol governance. DFST token holders will be able to make offers and vote to modify the terms and conditions of future SPO campaigns (e.g. DeFiStarter’s fee amount).

DFST holders will also be able to vote for tokens of promising startups to be added to the whitelist. Participants of whitelisted SPO will be able to additionally receive mining rewards in DFST tokens from the treasury. This will create additional motivation for building the community and will attract truly interesting startups.

All DFST holders will also receive 3% of startups’ tokens from all SPOs that have been hosted on the platform and 1% of all rewards collected by startups.

Token Contract Address: 0x46bfa3bb807b5c3b3ce7f7e0e667397020b6dc15
Total Supply: 10,000,000 DFST
DeFiStarter’s SPO Rewards: 7,000,000 DFST. The first project that will run SPO on the platform will be DeFiStarter itself. The pilot pool is already live, click here to learn more about it.
Treasury: 1,500,000 DFST. This pool is designed to develop and encourage the community that will be involved in the platform growth. We consider rewards for whitelisted SPOs, bugs discovering, suggestions for protocol improvements, participation in our hackathons, etc.
Team: 1,500,000 DFST.

Smart contracts and audits
Please review the smart contracts before you start working with DeFiStarter. We’re doing everything to make sure that the platform is reliable and secure, that’s why we’ve designed the contracts in compliance with all requirements.
- You can find DeFiStarter’s smart contracts here.
- DeFiStarter’s audit reports are accessible here.

Next Steps
Our team has decided that the first project to run an SPO on our platform will be DeFiStarter itself. The pilot SPO pool is already live and we will distribute the first 10,000 DFST tokens within 30 days. Pilot pool based on DAI/USDC 50/50 Balancer pool. There are 11K BPT staked at the moment.

We have initiated it so that our early supporters and all DeFi enthusiasts could get acquainted with the platform. To participate in the pilot pool, please read our step-by-step guide first.

During our SPO campaign we will be distributing 5,500,000 DFST tokens for 24 months. All the details will be published later, stay tuned for the updates!

Stay tuned
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