Comment on page

COT crowdfunding pool

The basic process of crowdfunding pool building

The platform provides a certain amount of COT, specifying the unit price and issuance quota. Within a specified time, anyone can participate in crowdfunding, and the crowdfunding pool quota: 5,000,000 COT/100,000 USDT.
The token quota is allocated according to the user's funds, and each user's crowdfunding quota is not higher than 1,000USDT. The fixed amount is not over-raised; Example: The user crowdfunds 1,000USDT, and the platform provides COT equivalent to 1,000USDT for free (the COT price at this time is the initial price)
After the crowdfunding period ends, the pool is automatically established on the COSO platform, and the crowdfunding price is used as the opening price to start trading.

Liquidity Protection

In addition to the "fair start" between traders, crowdfunding users and the platform must also maintain a relationship of balance and constraints. The more balanced, the more conducive to the healthy development of the market. Therefore, we designed the mechanism of liquidity protection: The buying order in the market consists of the funds recharged by the user, and the selling order consists of the remaining tokens after the crowdfunding period; These initial liquidity belong to the initiator of the crowdfunding pool, but during the liquidity protection period, the initiator cannot withdraw the liquidity; Anyone can continue to add liquidity as in AMM, but with a higher capital utilization rate in PMM. This spot market follows an established price curve:
Buy a token and the price will go up; sell a token and the price will go down

Crowdfunding quota design

We reserve the configuration function of participation quota for crowdfunding pools. Any crowdfunding pool can set the corresponding quota for different users. With the quota mechanism, simply enumerate the achievable gameplay:
  1. 1.
    The crowdfunding pool sets the corresponding quota for targeted invited users;
  2. 2.
    Other users will set the corresponding quota according to the GAS fee.
After the crowdfunding is over, a liquidity pool will be established as soon as possible and transactions will be opened.

Advantages of crowdfunding pools

Crowdfunding users’ assets creates a liquid market. The project party has the motivation to work hard and maintain the performance of the secondary market. Otherwise, you will end up with less money. Compared to Bonding Curve Issuance: A Fair Start, Avoiding Scientists Compared to mining: Inflation tokens are not required to pay liquidity rents, and tokens are distributed to investors rather than those who “mine, sell, and withdraw”.