AMA with LID Team | Development Update & ILO Presale Changes | NEW PRODUCT: LIFTOFF
As we strive to be the best in the business, we also like to share our development update and ILO Presale Changes moving forward. We have conducted an AMA session within the Team so we could present our action plans for the coming month/s. We also presented our new product LIFTOFF! Here’s what we have discussed and transpired during the session.
Points of discussion
* Project presale performance
* Project quality moving forward
* Premium Presales and our new product LIFTOFF
* Halborn audit
* Future partnerships
* TRON integration
* Branding identity
* Medium article on rug pulls
* DeFi landscape changing
* LID set up to fill the open space
* Gibs stepping down as CMO
* Closing sentiments
Pen | COO: Alright guys, for those of you who don’t know by now. I’m the COO, @carlsbad_sunshine is the CEO, @ty_sofresh is the CFO and we’ll be hosting this update/AMA today. I’ll go ahead and get us started off here. So in terms of Presale performance it’s no secret by now that it’s been tough sledding for our 3 most recent presales, 2 of them were community voted and 1 of them was a Premium launch. All 3 have failed to reach the 500 ETH softcap with the possible exception being Buy-sell if they can turn it around here.
We believe this is due to a few factors:
#1: The biggest being none of these products had anything to offer in the way of early incentives post-launch. IE they have no product ready to go. When the only thing to do with a coin after launch is simply held it, the only alternative is to sell it on Uniswap. A simple staking mechanism would work wonders. But alas, none of these projects had anything ready.
#2: Missing/misplaced marketing efforts. Some of these projects flat out did no marketing while others did marketing but aimed at the wrong crowds. The connecting line is always that these projects then begin to spam LID’s channel as if 300–400 more ETH is going to pop up. When early access ends, LID is usually tapped out. When we’re passionate about something (Xfinance) we show out (1k eth in 15 minutes, smashed softcap).. But when the project clearly hasn't done any marketing the general sentiment is to pass because it’s a sign of things to come. Other projects have marketed to the wrong crowds and it has shown. It is not LID’s job to market for a project. And this point directly ties into the efforts of the next point, which I’ll handle as well. Project Quality moving forward
I should also note this is something @carlsbad_sunshine will be a bit better equipped to handle next as well. But essentially we are placing a heavy emphasis on bringing QUALITY to you guys. We want projects the community can get excited behind.
While we have a setlist of requirements for every presale, we’re also including that the project MUST have a product ready to go at launch or at least 24 hours after. Anything less will not fly in the future. With that said, the number of projects you see us discussing will be Premiums going forward. And really, Carl can address this next.
Carl | CEO — LEAD DEV: So what we’ve noticed is there’s a variety of projects that apply to LID, and they can generally be sorted into two groups. On the one side, we have projects with teams, product ready, and marketing plans stretching out over multiple weeks. And into October we have some that are extending their ILO marketing and prep even further. Theses types of Premium projects are going to see stricter requirements moving forward. On the other hand, there's a huge number of small and microcap rug pulls that happen on a daily basis. We want to be able to stop those as well. So we are working on a new product, Liftoff, which will service microcap projects that are looking to raise 500 eth or less. Unlike the Lid Premium launches, Liftoff will be entirely self-service and have much looser requirements. There will still be requirements for a token audit, and any team privileged functions must not risk liquidity (no team minting, etc) but it will not have the same marketing and product requirements that Lid Premium has. This way, we can continue to grow Lid Premium and segment off a separate brand, Liftoff, to act as a bounce.finance alternative that can’t be rugpulled. On a slightly different topic, We’re upping the requirements for audits, especially as we’re looking at more well-developed projects that have larger raise goals. We’ve partnered with Halborn and Quill to audit projects that don’t have an audit for their token, and aren’t using a standardized token contract that’s proven safe. @PenProtocol mentioning partnerships, could you fill everyone in on some other ones that are happening?
Pen | COO: So as One of the things I’ve been active in doing since I started up on LID with our UX Designer Deffel and Carl has been to get partnerships, form strategic alliances with other projects in the space. Beyond just Upswing, we are in works with a major upcoming yield farming pool that could be absolutely excellent. It will end up being a pretty decent sized pool at that :) We’re also going to be in talks with one of the BIGGEST Stablecoins in the space here quite soon. I am SUPER excited about this one as the implications could be huge for us and the community as a whole. I hope to come back with great news for the future of LID :) On that note, if you could kinda go over where we’re at with TRON and also an update on branding that’d be awesome @carlsbad_sunshine
Carl | CEO — LEAD DEV: Yes! So we’ve made some progress in migrating contracts to Tron, but there’s been a huge change in the competitive scene for locked liquidity. Several groups that were pursuing locked liquidity have either become defunct or moved to other areas, as many of you are aware. This means its less urgent to expand into fresh markets on other blockchains, and more imperative to grow in areas that are now lacking locked liquidity services. That’s why we’re launching Liftoff before Tron migration. It fills a huge niche that has just opened up. It’s also why we’re focused on levelling up the Lid Premium ILOs, as there’s also no one currently servicing that market either. @ty_sofresh has some more information on changes in the competitive landscape, and some other articles
TY | CFO: Yes! So with the recent events surrounding HatchDAO, I went in and did some investigating around rug pulls. Everyone knows they happen; if you have been in the crypto space long enough, then you have either been a victim of a rug-pull, or you know someone that has been.
Finding the data and assembling it is time-consuming and involves a lot of number crunching — in addition, no one source will openly publish this information. Which is unfortunate, because as an investor community, this kind of information should be front and centre, as it shows the true health of the greater ecosystem.
In the article, we will be listing every Uniswap listing that had it’s liquidity reduced to zero, from 21st September to 25th September, inclusive. The sheer number of liquidity reductions to zero will absolutely astound you. Not only that, but the monetary value is absolutely insane (keep your eyes peeled for the announcement for this article!)
Further to this, what you’ll also see is a huge amount of smaller sized rug-pulls — just bouncing off what Carl said, LiftOff will help to reduce these smaller sized liquidity reductions in the DeFi sector
As we are also seeing, as LID continues to expand and grow, the general health of the DeFi space is also improving. The Medium article that will soon be released will really open everyone’s eyes to just how serious of an issue rug pulls (aka; liquidity reductions to zero) really are, and why the fundamental approach LID brings to the space, is so very critical for the continued growth and health of the DeFi space as a whole.
Carl | CEO — LEAD DEV: Thanks TY, so thats why we’re focusing on this strategy of creating Liftoff to help allow LID to service the full spectrum of projects needing locked liquidity services. There are two other major initiatives that have started recently, that need to be mentioned. Halborn is currently conducting an audit of LID’s contracts, especially the Lid Dao and associated upgrades. This is an important next step to testnet release of Lid Dao. We’ve also started work on a new brand identity for LID. While the work we’ve done is amazing, what sometimes has been missing is effective storytelling to help everyone feel involved and to guide people into finding their place in the LID community. This becomes even more critical as the Lid Dao is released, as the bootstrapping period ends and Lid Stakers take full control. @PenProtocol has one more final announcement, and then we can move to community questions.
Oh and don’t worry, we aren't going to change the logo, it will fit perfectly 😊
Gibs | CMO: As we can see, LID is going to a new phase of huge product launches. So As LID enters a massive transitional phase in development with a wide range of products launching soon, there is need to boost the marketing side of things to make synchronize with the developmental and operational side of things. In the past month we have contracted two top marketing firms, launched multiple LID local communities, launched in more exchanges and brought in several key influencers in the blockchain field to mention a few. However, as an organization, we believe we could do much more — with more hands, fresher new ideas, beneficial connections, wider reach and extra experience in the industry. So, there is a need for additional top marketing personnel(s) to take LID to the next level seamlessly. To this end, I will be soft-pedalling a little to take a new role as Marketing Director while we bring in a vibrant new top-level marketer to occupy the CMO position in the coming weeks. We believe that as a team, we will work together to take LID to a greater Heights. The coming weeks will be great for the LID community! I believe @PenProtocol will make the new CMO ann soonest.
Carl | CEO — LEAD DEV: Thanks Gibsoon, you’ve done a huge amount to get us to where we are today, and I’m excited to see how we’re able to grow.
Gibs | CMO: Yes more greatness is coming!
TY | CFO: @Gibsoon thanks brother, your efforts in Marketing Director role are really going to help push us further in the right direction. This guy ladies and gentlemen is a true #LID team member ❤️
Gibs | CMO: Excited at the next level of LID
Pen | COO: Thank you Gibs! You’ve been here pretty much from the jump! Glad you’re still gonna be around for us as well 😊!
Pen | COO: Alright guys, we will have a medium up with the recap of this shortly as it was a lot of info. We’re going to try and do weekly updates going forward rather than these huge data downloads lol. Gonna open up for any questions now! It’s open now if there are any
Carl | CEO — LEAD DEV: OK, Im going to be working on Liftoff, but I will also check if there's any questions here.
Q1: Liftoff meaning a different Presale Website? How?
A1: Exactly. We have a new domain, and there will be some design changes. Fully automated, self-service platform. There’s a form on the site that the project devs use to upload their information, including the token contract code and a link to the audit (if required). After submission, there's a 24-hour automated review process. The system then deploys the contracts and creates a new dapp page.
Q2: Like bounce where u just create pools and start selling? Ok to prevent minting issues or rug pulls
A2: Similar, but a bit more involved for the project dev as they have to provide token contract code. The deposit system will work just like the current one. Exactly. Obviously, LID can’t protect against everything, but we have a HARD guarantee on preventing rug pulls, which means the token contract must have no minting issues, and also must be audited or standardized.
So-called “locking” projects that are completely bypassed by minting functions are not acceptable. LID must have a higher standard than that. Locks mean locks, not fake locks that dont work.
Q3: So LIFT OFF still hold tokens? Like there’s claiming thing
A3: Yes, the entire system will be the same as the one you’re familiar with for Lid Premium. However, the level of requirements will only be technical, and the limits will thus be much lower. For Premium, we’re requiring projects to already have a product at launch. Liftoff is designed for microcap projects who can’t meet those requirements
Q4: So once they are audited, they get their own dapp page and start their presale on their own without ur involvement? Is there a cap for how long their presale can run or is their a soft and hard cap for liftoff
A4: Correct. They will all have a 100 eth softcap and 500 eth hardcap. 24 hours for softcap, 24 hours for hardcap, and 10 hours for investor claims. If it fails to reach the softcap, then the project will go into refund. So we will also be disabling the referral system for LIFTOFF so we can guarantee 100% refunds. It will be a simpler, smaller version of Lid Premium ILOs for microcap gems.
Q5: Is it going to be worth it? I mean, who wants project with no products after the sale. The price will just drop.
A5: That’s why the limits are very low. It’s higher risk, so projects cannot and should not raise as much eth. However, we’ve seen people send eth directly to addresses with no guarantees, and steal eth, do liquidity rug pulls, etc. So Liftoff will help that market, while keeping the amount of eth small to increase potential benefit. Also I get the concerns around projects with lower restrictions using LID, which is why we’ve separated Liftoff into a separate brand. We don’t want people to treat Liftoff like they treat Lid Premium.
A5: I think the main thing here is the ease of access is going to be tenfold as it’s going to be completely self-service in nature. Anyone can use it
Q6: Yes. Experienced many rug pulls so planning to move to LID. That’s why I want to ask everything. So I must go to premium not in the LIFT OFF. Anyway, Have you considered Lowering Cap in every presale?
A6: Actually, what we’re looking to do is acquire higher-quality ILOs, some of them already backed by other capital, angel investors, or even VC. These projects are an entirely new market, and have much higher raise goals. As the amount of research by Lid community increases, we’re starting to receive requests from larger projects with more professional teams that wish to use Lid’s ILO tech.
A6: It’s using the same smart contracts, it’s just the eth raises are alot lower and it’s self-service. I wouldn’t discount a project just for using Lift-off, if anything with the amount of projects we hope that will use this there are certain to be some lowcap gems in there for investors But premium projects will be a big focus as well going forward
A6: People already use Bounce, and if we can provide better protection than Bounce does, its good for investors who are seeking these low mc gems. We won’t be promoting or even mentioning LIFTOFF projects on Lid twitter, telegram, etc. We are working on a listing system for the liftoff site so you can see which projects are on there, but that will be it. Yes, Liftoff fills a great niche that just opened up. We’re really seeing a situation in locked liq thats not even survival of the fittest — its just survival lol. LID’s survived, and that means we’re able to take advantage of opportunities others cant.
A6: a core product ready to go at launch a strong team, etc
Q7: How about the fee for Liftoff? 5% still? 3500 or 2k above is quite high for me. hard to reach these days.
A7: We’ve really seen that raises about even 500 eth are very difficult unless the team has a product ready to go post-launch. The reason is simply that if there’s no product, there's nowhere for tokens to go except to be sold on Uniswap, so the price dumps. The product prevents price dumps in bigger raises. The bigger the raise, the better the product must be at launch. Correct, we will be keeping the fee for liftoff the same. For Premium, we’re looking at ways we can upsell services to increase revenue.
This, and especially with locked liq, we find that generally around 25% of circ supply minus tokens held in product tend to end up on Uniswap. We’re using this data to construct the Liftoff terms to try to prevent dumps, and for Premium, we’re working closely with teams to make sure the product they release can absorb enough tokens to prevent price dumps.
Of course, ultimately price will be controlled by market forces outside of LID’s control, but increasing the quality of launched product to make sure tokens are used for utility instead of just sold on Uniswap will make a huge difference.
A7: Exactly, this is our goal going forward on projects the team specifically brings to Premium Launches
Q8: Any more upcoming stakers incentives? I want the airdrop but I heard it will go to Dao fund so for incentive if I will stake I can.only have early access
A8: A big focus is adding more XXX/LID pools, for each project. If you check out Uniswap analytics, you’ll see the projects we launched recently all have LID pools. These have been generating more transactions due to arbitration between those pools and the eth pools, which has improved staker rewards. Also, since those tokens are locked as liq, it is slowly draining more LID tokens into the uniswap pools which provides protection against volatility. Alongside that, we’re working on a staking analytics platform. right now, people are unclear on what the APY is or how these changes have affected APY. We’re going to start showing that data both to the team and to community so better decisions can be made.
Q9: That is great. How about The burn and Buyback for LID. Can you guys provide the hash after every presale? For which presale eth fee?
A9: Currently because so many ILOs have failed to reach softcap, we’ve had to hold off on BB&B to make sure we can fund development. Thats also why Liftoff is a priority, so we can increase revenue and thus BB&B rates. Oh yes we have that information, we give them to the teams. If you need we can dig them up for you, Im surprised they haven't announced them?
A9: We did it during the XSWAP Yield Farm of 100 eth worth. We got a lot of natural movement to generate from it, our price moved from .027 to .044, unfortunately, the market dropped 5% across the board the very next day lol This was a mix of Treasury and CXN. as the overall net of licensing fees from CXN wouldn’t have covered all of it but we felt it best to do a sizeable buyback and burn as momentum was huge
A9: 20% of ETH is a target, not a hard limit. We may bulk together BB&B depending on the performance of ILOs. First priority is always to continue dev on the product.
A9: The thing with LID token buyback and burns, is that they are a very strategic piece to the LID token value puzzle. And as such, the size and timing of the specific buybacks must be implemented in such a way to generate the most positive and effective value for LID and the LID community. In the case of XSWAP yield farm, that yield farming got up to 9k ETH deposited into it at one point, and we started the buyback and burns when we had just entered it around the 500–1000 eth range. I’d actually like to see LID BB&B reach 50% or even 80% of raised eth, but doing so requires investment in automation to reduce costs.
A9: As Carl just mentioned, to generate that kind of net revenue, our main goal is to reduce overall costs. Automation and continued development is key to this success.
A9: Yep that’s correct — as @carlsbad_sunshine mentioned, the Buyback and Burn information regarding the presale projects is supplied to those project teams, for them to announce. We can supply info if you need :) Yep, so as Carl mentioned, with the recent ILO’s failing to reach soft cap (and therefore LID taking no revenue), the funds have not been available to carry out effective LID buyback and burns.
Q10: Any plans to lift up LID’s price.
A10: We’ve been testing the allocation of 10% of locked liquidity to LID, which provides a price lift 3x. First, through the purchase of LID after the ILO for the pair with eth. Second, it increases the total value of locked liq in LID. Third, it increases staker revenue as arbitrators transact on these LID pools and pay the 2% fee.
Q11: When can we expect another exchange? Why? Can we be on Kucoin?
A11: Not anytime soon All volume is on Uniswap. Unless it’s Kucoin, OKEX, or Binance. It’s generally a money pit. and most volume is on Uniswap
A11: Its best to focus on the Real top 10s with real volume. Other exchanges we’ve listed, including major ones, haven't done much to increase staking rewards, liquidity, or volume. Exception being BiKi
A11: Their price was quite high. and we’re not quite in the position to afford it yet. @Gibsoon can attest, we fought very hard for both Kucoin and OKEx but the prices were very very high
A11: Our last exchange listing didn't do well. If they can improve their security, maybe. In the future hope to see LID secured liquidity transcend to full-blown security that even extends to exchange security to prevent such a breach As happened to kucoin
A11: If they can improve their security, maybe.
Q12: What’s up with the DAO? When can we expect this up and running?
A12: As in the update, it’s being audited at the moment
A12: Lid Dao is currently under audit with Halborn. After audit, we will be launching on testnet. In the interim, we’re working on some basic voting for stakers to help make decisions on products and projects. Alright, this has been a lot of fun, but I have a lot of development to do!
TY | CFO: As the guys mentioned just above, we are actively working towards those goals of being listed in some really top exchanges — however to get there, we need to also focus on development — growing LID and continuing the expansion, will be key to reaching those goals.