Announcement: The launch of Algem’s Liquid Crowdloan

[igporoshin]

We are thrilled to announce that after a long journey of development and refinement, the launch of the Liquid Crowdloan is just a month away! The exact date will be revealed soon, but we couldn’t wait any longer to share this exciting news with you.

What is the Liquid Crowdloan?

The Liquid Crowdloan is an innovative fundraising mechanism developed by the Algem team. It combines the goals of traditional fundraising methods like ICOs, IEOs, and IDOs with the more modern and equitable approach of lockdrops and crowdloans.

Unlike ICOs, IEOs, and IDOs, users do not need to invest their tokens, they only lend them for 6 months and then receive them back in full. The only risk here is the opportunity cost.

Participants lock their ASTR tokens in the Liquid Crowdloan smart contract and receive liquid tokens (aASTR) which provide flexibility and additional earning opportunities within the DeFi ecosystem in return as rewards. Users also receive Algem’s native governance tokens, ALGM.

In addition to the rewards, the Liquid Crowdloan offers an eco-friendly way to support the development of projects and the entire ecosystem without risking one’s own tokens. This approach not only secures necessary funding for projects but also promotes a sustainable and participatory financial environment.

Why the Liquid Crowdloan matters

Liquid Crowdloan represents a new era in project financing, made possible only on Astar Network. This innovative product is designed to revolutionize how projects are funded, offering unique advantages and opportunities that set it apart from traditional methods. The Liquid Crowdloan ensures a fair distribution of ALGM tokens among all participants based on their contribution size. This product not only secures project funding but also integrates community participation and rewards.

New Way to Use ASTR

The Liquid Crowdloan expands the capabilities of ASTR and introduces a new way to utilize it.

Key mechanics

Briefly summarized:

Locking ASTR tokens:

• Users participate by locking their ASTR tokens in the Liquid Crowdloan smart contract.
• In return, participants receive an equivalent number of aASTR tokens.

Staking rewards:

• The locked ASTR tokens are directed to the Astar Network dApp Staking module, generating staking rewards for the Algem team until the expiration date. These rewards are used to fund the team operations such as salaries, security audits, promo campaigns and so on.

ALGM rewards:

• At the end of the Liquid Crowdloan event, a snapshot of user balances is taken and ALGM rewards are distributed through a vesting smart contract over six months.

Liquidity and flexibility:

• Liquid aASTR tokens can be sold at any time without losing ALGM rewards.
• After six months, the underlying ASTR can be claimed by any aASTR holder.

For a detailed explanation of Liquid Crowdloan, please refer to the full product description in our whitepaper (6 languages available!).

Benefits of participating in the Liquid Crowdloan

• Risk-free opportunity: The Liquid Crowdloan introduces a riskless opportunity to acquire ALGM tokens, with the only associated risk being the opportunity cost.
• Open participation: Every user can participate in the event without needing approval, and KYC is not required.
• Additional rewards: Liquid aASTR tokens can be used to earn additional rewards on various DeFi dApps until the expiration date.
• Market dynamics: The price of aASTR tokens will be determined by market forces and is expected to be lower than the underlying ASTR price, creating time-arbitrage opportunities for external aASTR buyers.
• A referral system that rewards both referrers and referees.
• Other exciting rewards and benefits will be revealed shortly!

Pre-launch campaign

The pre-launch campaign will span over four weeks, each dedicated to a specific theme:

Week 1: Introduction to the product

• Get to know the core concepts and benefits of Liquid Crowdloan.

Week 2: Comparison with other fundraising methods

• Understand how the Liquid Crowdloan stands out from ICOs, IEOs and other methods.

Week 3: The economics of the ALGM token

• Learn about the strong tokenomics of ALGM, our upcoming products and how ALGM tokens will be used in these products.

Week 4: A final countdown

• Detailed instructions on how to participate, campaign parameters, reward pool and overall timeline.

Each week offers you the chance to participate in shaping the final product and the chance to win rewards in the process, through engaging contests.

Conclusion

Stay tuned for daily updates on our media channels and get ready for an exciting four weeks leading up to the launch of the Liquid Crowdloan. Join us on this journey and be part of the future of project financing!

Me and the Algem team will be adding updates about this product and the promotional campaign here. We look forward to hearing your comments and questions.

Thank you!

[pitcoin777]

That’s nice! Hope the community enjoy this innovative way of funding but I am concerned about the use cases of Algem token… What are the use cases of ALGM token? What is the benefit of locking ASTR and getting aASTR + ALGM? The benefit worth the operation of adding a risk layer from user perspective?

Thanks for the proposal, team.

[igporoshin]

Hey, we have an entire chapter in WP about ALGM use cases, you can check. Also, this will be discussed during 4 weeks preparation campaign (week 3).

Here is the tokenomics audit by the way.

[Max.eth]

It’s really nice how Liquid Crowdloan allows user flexibility.

With aASTR tokens, participants can engage in Defi opportunities without being tied down by asset locks. Like it.

[Matt]

That is great news! The idea of Liquid Crowdloan really does sound very innovative; the first one to prioritize the community in fundraising. It’s nice to see that participants do have an avenue for risk-free participation to support projects and earn rewards while giving them more flexibility over their tokens in the DeFi space. Even the themes of the pre-launch campaign make it quite easy for one and all to plunge deeper into the details each week and interact with the process.

Excited for this launch and looking forward to learning much more about how Liquid Crowdloan is going to change project financing on Astar. Congrats, Algem team, on all the hard work getting here—looking forward to updates!

[Juminstock]

Hi @igporoshin, thanks for joining the forum to communicate this great project.

I am very attracted to the idea of this new mechanism, it seems to me that it has a quite appropriate working model but, above all, I like that you are giving a 100% real usability to the $ASTR token. Congratulations for doing it!

I’ll keep an eye out for more updates from my side .

[bao]

Thank you for the announcement. I’m interested in understanding the main differences between nASTR and aASTR. Could you please highlight the key distinction between the two?

[SimonB]

Congratulations guys for this new and interesting mechanism of liquid crownloan. It’s really very interesting and I think it can be successful. It’s great to always see new innovative uses of the $ASTR token and I think this is a good step forward for our DEFI ecosystem. Being able to use $ASTR for a liquid crownloan of the algem token intrigues me a lot. I just wanted a clarification to check if I understood everything correctly: if I locked up 10,000 $ASTR, I would receive 10,000 $aASTR and in I’m entitled to receive ALGEM tokens. If I sold all my aASTRs in 1 month, at the and of the process I would still be entitled to receive ALGEM tokens as if I had never sold my aASTRs. Right?

[igporoshin]

Hey,

Yes, this is right. You can sell aASTR anytime and you will receive ALGM rewards in accordance with your initial contribution.

[igporoshin]

Hey,

nASTR is the liquid token for the current implementation of liquid staking making users eligible for the dApp staking rewards. nASTR price = ASTR price.

aASTR in the liquid token for Liquid Crowdloan. Participation in the crowdloan provides the right to receive ALGM rewards, as well as additional rewards from using aASTR. aASTR has an expiration period of 6 months, which means that after this time, users can retrieve their ASTR by returning aASTR. Upon deposit, users receive 1 aASTR for every 1 ASTR contributed, but the price of aASTR on secondary markets (on DEX) is likely not to equal the price of ASTR and will be determined by supply and demand. However, regardless of the price on secondary markets, after 6 months, users can exchange aASTR back for ASTR at a 1:1 rate, effectively making aASTR a zero-coupon bond and providing arbitrage opportunities.

[GuiGou]

Algem is a team and a project that has been constantly building and innovating since the beginning.
Congrats and keep it up!

About thie liquid Crowdloan, I have already tested this feature and I can’t wait to see it on the mannet.

[igporoshin]

Let’s begin a new week with this post. This time I’m going to compare the Liquid Crowdloan with other fundraising mechanisms and explain why our new product is a better option!

The Liquid Crowdloan as a better fundraising mechanism

In the ever-evolving world of cryptocurrency fundraising, several methods have emerged, each with its unique advantages and drawbacks. This article delves into traditional fundraising methods like Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs). We’ll explore their inherent flaws and provide examples of how they have led to significant losses for users. Finally, we will highlight how Liquid Crowdloan addresses these issues and stands out as a superior fundraising solution.

Traditional Fundraising Methods: ICOs, IEOs, and IDOs

Initial Coin Offerings (ICOs): ICOs were the first popular method of fundraising in the cryptocurrency space. They gained widespread attention in 2016-2017. In an ICO, a project offers its tokens for sale to the public in exchange for established cryptocurrencies like Tether USD (USDT) or Ethereum (ETH). This method allowed any user to participate by simply sending their cryptocurrency to the ICO contract.

Initial Exchange Offerings (IEOs): IEOs emerged as a more secure version of ICOs around 2019. In an IEO, a cryptocurrency exchange acts as an intermediary between the project and the investors. The exchange conducts due diligence on the project, which theoretically adds a layer of security and trust. Participants buy the project tokens directly from the exchange.

Initial DEX Offerings (IDOs): IDOs are the latest evolution in the fundraising landscape, conducted on decentralized exchanges (DEXs). In an IDO, tokens are listed on a DEX, allowing users to trade them directly on the blockchain. This method is decentralized and does not rely on a centralized exchange.

Drawbacks of ICOs, IEOs, and IDOs

While these methods have been instrumental in raising funds for many projects, they also come with significant drawbacks:

• ICOs: Many ICOs turned out to be scams or failed projects, leading to significant financial losses for investors. For example, the Bitconnect ICO, which raised millions of dollars, was later revealed to be a Ponzi scheme, resulting in substantial losses for participants.
• IEOs: Although exchanges perform due diligence, the high costs associated with participating in IEOs (such as holding large amounts of exchange tokens) can be prohibitive.
• IDOs: While IDOs provide more decentralization, they also come with risks such as low liquidity and high volatility. The lack of a centralized authority means there is less oversight, which can lead to issues like rug pulls and fraudulent projects.

Other Drawbacks:

• Gas Wars and High Fees: ICOs often led to “gas wars,” where participants paid exorbitant transaction fees to ensure their transactions were processed quickly. This was especially prevalent on the Ethereum network during peak ICO periods.
• Regulatory Risks: Many ICOs and IEOs faced regulatory scrutiny, with some being classified as securities by regulators like the SEC, leading to fines and legal challenges.
• Market Saturation: The ease of launching an ICO led to market saturation with numerous low-quality projects, making it difficult for investors to identify worthwhile investments.
• KYC Requirements: Many IEOs and other fundraising methods impose strict Know Your Customer (KYC) requirements. This can be a barrier to participation, as it requires users to submit personal identification information, which raises concerns about privacy and data security. This added layer of complexity can deter potential investors who are reluctant to share their personal data.

How the Liquid Crowdloan Addresses These Issues

Fair and Transparent Distribution: Liquid Crowdloan ensures a fair distribution of ALGM tokens among all participants based on their contribution size.

Risk-Free: By locking ASTR tokens, users do not risk their funds in the same way they would in an ICO or IEO. The Liquid Crowdloan mechanism is designed to be friendly and minimizes the financial risks for participants.

Increased Liquidity and Flexibility: Participants receive liquid aASTR tokens, which can be traded or used within the DeFi ecosystem. This provides greater flexibility and additional earning opportunities compared to the fixed and often illiquid tokens received in ICOs and IEOs.

No KYC Requirement: Unlike many IEOs and other fundraising methods that require extensive KYC processes, Liquid Crowdloan allows open participation without the need for KYC, making it accessible to a broader audience.

Conclusion

The Liquid Crowdloan represents a significant advancement in the world of cryptocurrency fundraising. By addressing the key issues associated with traditional methods like ICOs, IEOs, and IDOs, the Liquid Crowdloan offers a more secure, flexible, and eco-friendly solution. Its unique features and advantages make it a superior choice for both projects and participants, driving the growth and adoption of Astar Network and the broader DeFi ecosystem.

Don’t forget to follow our media channels and take part in the upcoming weekly contest!

[Max.eth]

Liquid Crowdloan really changes the game in crypto fundraising by making it more accessible.

You don’t have to go through all that KYC hassle, and you can trade your aASTR tokens right away. It’s definitely more flexible and fair, with lower fees too.

Great for both seasoned and new investors looking into safer DeFi opportunities.

[Matt]

Great to see a breakdown like this of the Liquid Crowdloan. It’s a pity the traditional crypto funding had such flaws in their usual fundraising methods. The transparency, reduced risk, and adding liquidity really make it very appealing to new and experienced investors alike.

Many thanks for explaining how this approach serves the community. Exciting to see what’s up next with Astar Network!

[bao]

That’s perfectly clear. Thank you for the explanation.

[igporoshin]

What is next for Algem: the upcoming products

Introduction

As we approach the launch of our Liquid Loan (previously Liquid Crowdloan), it’s important to remember that this event is not our ultimate goal but a significant step towards the introduction of our next groundbreaking products. Each of these products will leverage the power of the ALGM token and further enhance the Algem ecosystem. Let’s take a closer look at what’s coming next.

Upcoming products after Liquid Loan

The Liquid Farming

Liquid Farming is a DeFi mechanism that extends the concept of liquid staking by allowing users to farm yield on AMMs while remaining liquid, with the help of liquid lf-tokens (eg. lfETH).

How it works:

• Liquidity Provision: Users provide liquidity by depositing ETH and another ERC20 token into a supported pair on an AMM.
• Vaults: Users then lock their LP tokens into different vaults, each with varying expiration dates and incentive levels.
• lfETH Tokens: The vault mints liquid tokens (lfETH) equal to the supplied ETH, which can be traded, used as collateral, or held until expiration.
• Rewards: Users earn ALGM incentives and farming rewards, which are distributed based on their share of liquidity in the vault and their participation in the ALGM staking pool.

The product status: Liquid Farming has been developed and audited and we are now working on final tests before the launch.

Liquid Staking V2

Liquid Staking V2 is a significant upgrade to our previous liquid staking model, introducing a new liquid token and solving several issues from the older version.

How it works:

• Staking and Minting: Users stake their ASTR and receive liquid xnASTR tokens, which automatically accumulate staking rewards.
• Unstaking Options: Users can unstake through regular or immediate options, with varying wait times and fees.
• Voting Mechanism: Users can vote on which dApps their staked ASTR should support, using veALGM tokens acquired through ALGM staking.
• Cashback System: A cashback mechanism allows users to receive a portion of the staking management fee back, enhancing returns.

This update offers user flexibility, seamless integration with DeFi dApps, introduces new features like automatic reward accumulation and provides a robust voting mechanism.

The product status: Liquid Staking V2 has been developed and ready for the audit.

The differences between Liquid Staking V2 and V1.5 (current version)

1. Main difference: A new liquid token called xnASTR will be introduced. This will be a reward-bearing token in the OFT format from LayerZero. Users will no longer need to claim rewards every era; instead, the rewards will be reflected in the price of the xnASTR token.
2. As a result, there will no longer be a need to use adapters either (intermediate contracts) between Algem and DeFi partners (such as Sio2).
3. Another significant update will be the addition of a voting system, where users will have the opportunity to vote for applications in which ASTR tokens will be staked.

ALGM Staking

Staking ALGM is designed to distribute Algem’s revenue among token holders and represents a crucial use case for the ALGM token.

How it works:

• Revenue Sharing: ALGM stakers receive a portion of the revenue generated from Algem’s fees (such as liquid staking and farming fees).
• Locking Period: To participate, users must stake and lock their ALGM tokens for a period of up to 60 days.
• Governance Participation: Stakers receive veALGM tokens, enabling them to participate in governance voting and influence key decisions within the ecosystem.

This product enhances the value proposition of ALGM by providing token holders with a share of the platform’s revenue, thus creating a sustainable demand for the token.

The product status: the ALGM Staking contract has been developed and audited and is ready for launch.

These three products are fully developed, have undergone comprehensive security audits and are now ready for launch. For more detailed information, please refer to our whitepaper.

Remember you can join the whitelist now!

As usual, I encourage you guys to apply for the whitelist to get numerous bonuses during the upcoming Liquid Loan.

Apply for the whitelist → forms.gle/m1K9LK2LwCMCFstb8

Stay tuned for more updates and take full advantage of this opportunity!

[Matt]

Exciting update, for sure! The upcoming launches-Liquid Farming, Liquid Staking V2, and ALGM Staking-show great progress. Can’t wait to see the products live-amazing work, team!

[Sequaja]

Thanks for the updates and the transparency. The The Liquid Crowdloan feature seems very intresting and looking to test it on mainnet.

[igporoshin]

Understanding the ALGM Token: Backbone of the Algem Ecosystem

Introduction

The ALGM token is the reward for participating in our Liquid Loan (prev. Liquid Crowdloan). Therefore, it is crucial to demonstrate to our community how the tokenomics of ALGM are structured and how it operates across all our products. This article will provide an overview of the ALGM token, its distribution, its role in our products and the results of our tokenomics audit.

Distribution

The distribution of ALGM tokens is designed to support the long-term growth and sustainability of the ecosystem with a total supply of: 100,000,000 ALGM

A more detailed allocation will be revealed later.

How ALGM is integrated into our products

We firmly believe that a token should play a vital role within an application; otherwise, it risks becoming a useless token for occasional voting. That’s why we’ve meticulously designed the mechanics of using ALGM. This way, the token is integrated into all our products since it plays a crucial role of cash flowing within our system.

1. Liquid Farming:

• ALGM usage: ALGM tokens are distributed as additional farming rewards, which should then be re-staked in the ALGM staking pool to continue earning farming rewards. If not re-staked, the user will gradually lose a portion plus eventually all of their future farming rewards.

2. ALGM Staking:

• ALGM usage: Users stake and lock ALGM tokens to receive a share of the platform’s revenue, which includes ASTR and partner dApp governance tokens. Stakers earn veALGM tokens, allowing them to participate in governance voting and influence key decisions within the ecosystem.

3. Liquid Staking V2:

• ALGM usage: Users can vote on which dApps their staked ASTR should support using veALGM tokens, obtained through ALGM staking.

Check our whitepaper for more detailed information about the ALGM token usage.

Tokenomics Audit

To ensure the stability and sustainability of the ALGM token, we conducted a comprehensive tokenomics audit. Key findings from the audit include:

• Robust Structure: The audit confirmed that Algem’s tokenomics are robust, with no Ponzi-like elements or self-feeding loops that could cause instability. There are no problems with the internal design of the system, or the token allocation and distribution strategy
• Strong Utilities: there are several mechanics, such as Liquid Farming, the ALGM staking pool and ALGM’s stake for revenue, which generate constant demand for ALGM tokens.
• Balanced Distribution: The distribution strategy is well-balanced, ensuring that incentives, community rewards, and allocations for the team and investors are aligned for long-term growth.
• Risk Mitigation: Strategies are implemented to mitigate risks, particularly those related to external market conditions and the dependency on Astar’s ecosystem.

For more detailed information, please refer to our tokenomics audit.

Conclusion

The ALGM token is a strong asset with a well-designed tokenomics structure that provides significant benefits to its holders. By participating in the Liquid Loan and utilizing ALGM across our products, users can maximize their returns and contribute to the growth and success of the Algem ecosystem.

[igporoshin]

Deep dive into the Angels Fund

Introduction

As we approach the launch of our highly anticipated Liquid Loan (prev. Liquid Crowdloan), it’s time to remind our community of one of the key benefits of joining the whitelist and participating early in the crowdloan: the Angels Fund. This unique reward pool is designed to recognize and reward our earliest supporters, providing them with ongoing benefits throughout the Liquid Loan process.

What is the Angels Fund?

The Angels Fund is one of the primary incentives for participating in the Liquid Loan and securing a spot on the whitelist. It was created to acknowledge the vital role that early contributors play in the success of Algem. By participating in the whitelist and the early stages of the Liquid Loan, users are not just investors; they are seen as foundational members or “angels” of the Algem community. The Angels Fund ensures these early supporters receive continuous rewards, reflecting their importance to our project.

How the Angels Fund works

The Angels Fund operates by distributing rewards to early participants in the Liquid Loan over a period of six months. Here’s a brief overview of how it works:

• Reward distribution: The Angels Fund allocates a portion of ASTR rewards to early participants. These rewards are distributed monthly, ensuring that early supporters continue to benefit long after their initial contribution.
• Tiered system: Rewards are divided into two tiers:
  • 1st Tier: Whitelisted participants who joined the crowdloan (no matter which week exactly).
  • 2nd Tier: Non-whitelisted participants who joined during the first week of the crowdloan.
• Hybrid scheme: Rewards within each tier are distributed using a hybrid scheme that consider both the tier and the proportional method, ensuring fair distribution even for those with smaller deposits.

Size of the Angels Fund

The Algem team have allocated a huge amount for this pool, up to 1,800,000 ASTR. The exact size of the Angels Fund depends on the total amount of ASTR deposited during the crowdloan. The pool will be distributed among Algem Angels over a period of 6 months.

Here’s how it scales:

• If 100 million ASTR is raised: The Angels Fund size is 1,800,000 ASTR / 300,000 ASTR per month.
  • 1st Tier: Whitelisted participants receive 66.6% of the total monthly rewards (200,000 ASTR).
  • 2nd Tier: Non-whitelisted participants (first week) receive 33.4% of the total monthly rewards (100,000 ASTR).
• If 75 million ASTR is raised: The Angels Fund size is 225,000 ASTR per month.
  • 1st Tier: Whitelisted participants receive 66.6% of the total monthly rewards (150,000 ASTR).
  • 2nd Tier: Non-whitelisted participants (first week) receive 33.4% of the total monthly rewards (75,000 ASTR).
• If 50 million ASTR is raised: The Angels Fund size is 150,000 ASTR per month.
  • 1st Tier: Whitelisted participants receive 66.6% of the total monthly rewards (100,000 ASTR).
  • 2nd Tier: Non-whitelisted participants (first week) receive 33.4% of the total monthly rewards (50,000 ASTR).
• If 25 million ASTR is raised: The Angels Fund size is 75,000 ASTR per month.
  • 1st Tier: Whitelisted participants receive 66.6% of the total monthly rewards (50,000 ASTR).
  • 2nd Tier: Non-whitelisted participants (first week) receive 33.4% of the total monthly rewards (25,000 ASTR).

This scaling mechanism ensures that the rewards pool is balanced and sustainable, aligning with the overall success of the Liquid Crowdloan.

*note: The Angels Fund will not be established if the collection is less than 25 million ASTR.

Join the whitelist now!

Joining the whitelist for the Liquid Loan not only offers early access and exclusive bonuses but also positions you as a foundational member of the Algem community. By participating in the whitelist, you can maximize your rewards and play a crucial role in the growth and success of Algem.

Apply for the whitelist → forms.gle/m1K9LK2LwCMCFstb8