Suprime Xcel
The Suprime Xcel launchpad allows founders to launch their token directly through Suprime. Suprime Xcel has a few unique characteristics that help founders set themselves up for success.
Swarm Private Sale
As identified in our problem statement, autonomous Web3 projects that aren’t backed by L1’s or VCs suffer from a chicken-or-egg problem. Brilliant founders with great ideas but without a community and without funds are in a terrible negotiation position when trying to build their community or further develop specific aspects of their product before their public raise.
The Swarm Private Sale allows founders to do the following:
Receive funding for project development in preparation for public raise
Launch initial community of dedicated Swam investors
Receive marketing support from Swarm
Example
The founder of Project A is a highly skilled and creative developer with an incredible idea. He has built an MVP and wants to raise funds for his project. However, this founder knows nothing about marketing, has no great writing skills, and knows little about tokenomics design.
The founder sends his proposal to Suprime and pitches his idea. The Swarm recognizes the idea has massive potential for success, but they notice that the whitepaper is written poorly, the tokenomics are underdeveloped, and there’s no marketing plan. The Swarm sees potential in the project if these issues are addressed. The founder selects three Suprime Labs service providers to further develop his idea:
A technical writer that has written over 70 whitepapers for Web3 projects that works with the founder to rewrite the whitepaper.
A mathematician and veteran in the field of tokenomics design that supports the founder in creating the perfect tokenomics for its project.
A marketing agency that handles the marketing strategy, branding, content creation and partnership/KOL support for the coming three months.
The founder holds a $45k private sale on Suprime amongst Swarm investors to pay for the services. Swarm members can invest with their $SUPRIME yield or any other token for a small piece of the project's circulating supply.
Swarm members receive a higher APY on their $SUPRIME if they perform tasks that boos the project’s growth. The founder now has all the support needed for a successful public raise.
Chain agnostic
Suprime is committed to creating a Web2 experience for Web3. Being chain agnostic is one key aspect of realising that. For Suprime, being chain agnostic means two things:
Founders are able to launch their project on their EVM of choice.
Investors can participate in raises using a wide range of cryptocurrencies.
This gives founders greater flexibility to select their preferred EVM and allows investors to more easily participate in sales without having to bridge tokens or transfer through CEX’es.
Two IDO models
Suprime offers founders the option to select between one of two different IDO models. The Batch Auction Model and the Dutch Auction Model.
Batch Auction Model
The most common auction model in Web3 is the Batch Auction Model. The founder of the project can select the amount of tokens to be sold and the soft and hard cap of the raise. If the soft cap is not reached, the sale has been deemed unsuccessful, tokens will not be sold and the investor funds will be returned automatically. The hard cap is the maximum amount that can be raised during the auction.
So an example could be:
Project A wants to sell 5% of their tokens with a soft cap of $100k and a hard cap of $500k in three days. Once the soft cap of $100k is completed, the token sale will be executed after three days. Investors can still invest until the hard cap of $500k is reached.
If the project has a total of 1 billion coins, selling 5% of the tokens would be 50M tokens. At a $500k raise, the price ends up at: $500,000/10,000,000 = $0,01 per token.
Dutch Auction Model
The Suprime Launchpad is the one of the first Web3 Launchpads that also implemented a Dutch Auction Model for their token sales. The Dutch Auction Model is a battle-tested pricing mechanism used for selling goods or assets where the auctioneer starts with a high asking price, which is then gradually lowered over time. As the price of the tokens are actually determined by market demand, this is a great auction model for price discovery in anticipation of the public DEX trading after the raise.
This model has a few notable advantages over other auction models.
Fair pricing.
Prices are determined by actual market demand rather than arbitrary pre-set prices, leading to a more accurate reflection of the token’s value.
Liquidity Bootstrapping
The Dutch auction automatically generates an LP for the AMM that can be immediately used after the raise.
Inclusivity.
Every participant has equal opportunity to participate at any moment instead of first-come, first-served.
No whitelisting or lottery.
Reduce the risk of pump and dumps.
By setting a high price that decreases over time, the model discourages speculation and always finds a fair price that is very hard to manipulate.
Predetermined auction expiry.
Every Dutch Auction will have a fixed and programmed start and expiry date, making it easier to plan as part of a roadmap.
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