Colony’s Liquid Vesting DEX Launch: Effortless Trading of Locked/Vesting Tokens
Introduction:
Today, we’re excited to announce the launch of Colony Lab’s DEX, a vital component of our Liquid Vesting solution, seamlessly integrated into our Early-Stage fundraising platform. Colony’s DEX, powered by the UniV2 AMM and enhanced by custom contracts, executes Colony’s Liquid Vesting mechanisms to facilitate the smooth trading of locked/vesting tokens for early-stage projects through ceTokens.
💻 DEX access: https://app.colonylab.io/exchange/trade/
DeltaPrime’s TGE and cePRIME Trading:
The DEX launch took place today to align with DeltaPrime’s $PRIME TGE, making cePRIME now tradable in the official cePRIME/AVAX pool on our DEX. cePRIME trading marks only the beginning of Colony’s DEX, with many exciting plans yet to unfold to grow Colony’s DEX liquidity and TVL. More pairs will be added to the DEX in the future, and the Sustainability Program will follow and commence.
Users can now claim their cePRIME on Colony’s Portfolio — NEST section, trade it on Colony’s DEX, provide liquidity, and stake LP to receive an impressive boosted APR of over 31,800% in cePRIME. They will also be able to swap their cePRIME for the project’s native token, $PRIME, according to the project’s vesting schedule. For DeltaPrime, this means a 6-month cliff followed by a 6-month vesting period.
💻 Portfolio — NEST: https://app.colonylab.io/early-stage/portfolio/nests
ℹ️ If you missed DeltaPrime’s Seed Sale on Colony ($0.75) due to deadlines or KYC restrictions, now is your chance to acquire Seed allocations by buying cePRIME on Colony’s DEX (no KYC needed). cePRIME grants you the right to claim the project’s native token $PRIME based on the project’s vesting schedule directly in Colony’s Portfolio-NEST section. ℹ️
VIP Program Reveal:
In addition to the significant utility that ANT tokens hold within Colony’s Early-Stage Platform — enabling users to interact with projects’ NESTs to invest in Seed/Private sales — they also have a crucial role on Colony’s DEX.
ANT tokens can be used to access the VIP Program benefits on Colony’s DEX. CLY stakers (ANT holders) can lock their ANT tokens in Colony’s DEX to reduce swap fees. The longer and the more ANT tokens they lock, the lower the swap fees, adding another layer of utility for CLY.
By participating in the VIP Program, users not only benefit from reduced transaction costs, but the DEX also allows other investor profiles in the Colony ecosystem, such as KYC-restricted users or those who miss certain seed/private sales, to make the most of their staked assets ($CLY and therefore their ANT tokens). This enhances the overall experience and rewards for everyone on Colony’s platform. Additionally, this new utility helps create buying pressure on $CLY from users who are primarily interested in using Colony’s DEX to acquire ceTokens and benefit from lower fees.
How does Liquid Vesting <> DEX work?
When a project conducts a raise on Colony and its final raise target is set, it progresses to the Portfolio phase on Colony’s Early-Stage platform. During this phase, users who participated in a NEST (Private/Seed sale) receive their ceTokens, which represent their full unlocked allocation in a specific Seed/Private sale. These ceTokens enable users to interact with Colony’s Liquid Vesting mechanism.
Within the Portfolio section, users can claim their ceTokens and engage in various activities:
- Trade on Colony’s DEX: Users can trade their ceTokens on Colony’s DEX official pools: ceToken/AVAX.
- Provide Liquidity ans Stake LP: 10% of the total ceTokens of a project will be provided as rewards for the liquidity providers on the trading pools ceToken/AVAX. CeTokens holders can provide liquidity by pairing their ceTokens with AVAX on Colony’s DEX. By staking their LPs, they unlock a boosted APR in ceToken rewards. Through this process of providing liquidity and claiming ceToken rewards, users can maximize their ceTokens allocation, thereby increasing their ability to swap for additional native project tokens over time.
- Swap for Native Tokens: Users can swap their ceTokens for the project’s native token, subject to the project’s vesting schedule of course.
For those who participated in sales on Colony’s Early-Stage platform, the DEX offers the flexibility to trade their ceTokens directly. This allows users to either sell their early allocations acquired in the Early-Stage NEST to other investors or buy more. Additionally, the DEX provides an opportunity for users who missed a fundraising event on Colony or were unable to participate due to KYC restrictions to purchase seed/private sale ceToken allocations from other investors.
ℹ️ Colony’s DEX incentivizes ceToken holders to provide liquidity by offering 10% of the total ceTokens of a project as rewards for liquidity providers in the trading pools (ceToken/AVAX).
👉 Explore Colony’s Portfolio section on our GitBook for detailed information about the actions you can take.
Why did Colony build the first ever Liquid Vesting solution and its DEX:
In the world of early-stage investing, seed and private sales allocations often come with extended lockups and vesting schedules. These are designed to align interests between projects and investors by ensuring that tokens are distributed gradually over time, in exchange for access to tokens at a low price. These tokens vestings were meant to encourage long-term engagement and prevent market saturation, however, this is often not the case.
Colony recognized this challenge and developed the first-ever Liquid Vesting solution and its accompanying DEX to address these limitations. With Colony’s Liquid Vesting, investors can securely trade their locked and vesting tokens on our AMM (Colony’s DEX) without constraints. This groundbreaking approach introduces a new era of flexibility and liquidity to the primary market, benefiting both early investors and the projects they support.
The benefits of Colony’s Liquid Vesting and DEX:
Alignment of Long-Term Interests: By enabling the trading of vesting tokens, Colony’s DEX attracts long-term participants who are interested in establishing stable positions in promising projects. This helps in distributing tokens to those committed to the project’s success, rather than speculators looking for quick gains.
Increased Liquidity in the Primary Market: Traditional OTC deals often come with high fees and risks. Colony’s Liquid Vesting allows a single allocation to be traded an unlimited number of times on-chain in a trustless and transparent manner, significantly increasing liquidity and making the market more efficient.
Enhanced Flexibility for Early Investors: With Liquid Vesting, early investors can trade their tokens before they fully vest. This flexibility allows them to manage their investments more effectively, reducing risk and freeing up capital when needed, all while maintaining market stability.
Security and Transparency: The entire process is conducted on-chain, ensuring that all trades are secure and transparent. This trustless environment eliminates the need for intermediaries and reduces the potential for fraud.
👉 To learn more about Colony’s Liquid Vesting Solution, check out our Gitbook:
About Colony Lab
Colony Lab: The community-driven Avalanche ecosystem accelerator, powered by $CLY.
We empower projects through decentralized fundraising and liquidity. Our inclusive platform offers the community diverse exposure and unprecedented access to Avalanche’s remarkable growth. Join us for seed/private sales investment opportunities and unlock a world of rewards, including airdrops, $AVAX incentives, and a share in platform fees.
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