Rocket Vault to use Ferrum Network Fair Launch Protection System on Uniswap!
Ferrum Advisory Services is pleased to provide IDO Fair Launch Protection System for Project Rocket Vault and Uniswap listing. Project Rocket Vault’s IDO is an incredibly important day for, and that includes Uniswap listing, and getting it right is all that counts. The intent is to make launch as fair and beneficial as possible for our community members and investors alike.
Launch days, Uniswap Bot Hurdles & Solutions
It’s common for IDOs launches to involve various DEXs alike depending on projects plans and roadmap. As with any Uniswap launch, they have been plagued with lack of technical solutions to a glaring problem of Bot prevalence infiltrating the Uniswap system affecting liquidity & price of the token itself.
Bots are used by bad actors who, using unfair technological advantages, to buy large amounts of tokens before any real community members can, and then after a few minutes, dump those tokens on the real community members and investors. Using this “pump and dump” scheme, bot owners can earn millions of dollars in just a couple of minutes, at the expensive of the community.
Ferrum Network & Ferrum Advisory Services provides solution to the Bot problem, with it’s unique “Fair Launch Protection System” commonly known as Anti-Bot system. Project Rocket Vault will be implementing the Fair Launch Protection System, powered by Ferrum Network. This means that bot addresses who attempt to infiltrate our listing will be detected and blacklisted, and will not be able to sell/transfer any tokens.
PLEASE TAKE NOTICE — all those who attempt to use bots or other unfair technological advantages to snipe the Project Rocket Vault Uniswap listing, you will not be able to sell/transfer your tokens! Please consider this your ample notice & warning!
In this article, we explain why we are implementing Ferrum Network’s Launch Protection system, how it works, and how it’s designed to ensure fairness for the entire community.
The Bots are Out of Control
The problems with bots are well documented. Go to any Telegram channel of a hot new project about to launch, and you will see hundreds of questions about what the project plans to do to prevent the bots from dumping on the community, and while the market continues to expand, the problem has only gotten worse. Here are some facts about bots:
· Bots regularly infiltrate Uniswap listings of hot projects allowing bot owners to make hundreds of thousands of dollars in minutes at the expense of the community.
· Most bots will start dumping within minutes and can dump in the same block as they bought.
· Bot owners will sell at inflated prices to other users after their bots have bought up liquidity and driven up the price.
· In some recent listings, bot owners made millions of dollars within minutes by pumping and dumping on the community.
Here are some visual examples of what this means for the projects:
How do They Do It?
In simple terms, the bots take advantage of the speed at which they are designed to operate and are able to buy tokens faster than anyone else. This of course would not be an issue but for the fact they always immediately dump their tokens on the community.
Ethereum block time is ~13 seconds. Because of the long block time, programs can monitor the mempool for unconfirmed transactions. When an Add Liquidity pending transaction is observed in the mempool for a monitored token, the user’s program can execute a buy order in the same block.
This means that bots are always faster than your real community and will buy at the lowest possible price and then dump it on your real supporters.
Example: Paid Network
During PAID Network’s (PAID) token launch, a bot was immediately behind the Add Liquidity Event in the initial block and purchased at the lowest public price. The total buy was 2,152,207.99 PAID for 100 ETH.
They then sold 2,152,207.99 PAID tokens within 7 minutes and 9 seconds and made a profit of 526 ETH ($929,762 @ 1761 USD/ETH)
Cleary, these are bad actors only out to help themselves at the expense of the community. We will not allow this to happen to our project and community.
Stopping the Bots with Ferrum’s Launch Protection System
We are proud to be working with Ferrum to utilize their Launch Protection System. This system was used in the launch of another project (Evolution Finance), and the results speak for themselves.
But how does our Launch Protection system work? There are multiple phases, starting with the preparation phase, including:
· First, our dev team gathers intelligence on known bot activities from various sources.
· Second, we identify key indicators that differentiate humans and bots
Then for the launch, we implement several strategies to prevent bots from dumping their unfair purchases onto the community. For example, users that buy the tokens on Uniswap may be restricted from selling the tokens for up to 15 minutes after the launch while we implement the anti-bot protection system to prevent bots from selling/transferring their tokens.
Bot owners: you have been warned!
Advantages of the Ferrum Launch Protection System
There are many advantages to the Launch Protection System including:
· Increases trust in the launched token as the community doesn’t need to worry about being dumped on by bots.
· Tokens bought by bots are effectively removed from circulation, therefore permanently lowering the total supply.
· ETH is added to the liquidity, benefitting the community and project
· Increases the price floor because tokens bought by bots cannot be dumped
Implementing a Review Period
Although we are extremely confident in our ability to detect and blacklist only bots (we had a 100% success rate in our previous launch), we understand there might be some instances where it is a grey area or we accidentally blacklist a real community member.
To be clear, in the event of a questionable/grey area, we will NOT blacklist that address. We will only blacklist an address when the evidence of botting is clear and obvious.
Secondly, we will implement a review period wherein anyone who believes they were wrongfully blacklisted can contact the dev team and we will review what happened. If we made a mistake, we will un-blacklist the address.
What’s Next
Please be on the lookout for the date of the Uniswap launch. Please stay tuned to our announcement channel for more information!
Thank You
We want to thank the Project Rocket Vault and Ferrum Network communities for inspiring us to go above and beyond to protect this launch. This one is for you!
Very truly yours,
The Ferrum Network Team
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