Occam.fi
Published in

Occam.fi

Initial Decentralised Offerings (IDOs) on OccamRazer

The core of the Occam.fi ecosystem’s value offering today are initial decentralised offerings, or IDOs, which we will soon host for the first time on the OccamRazer platform.

A popular feature of the DeFi landscape on Ethereum and other blockchains, IDO raises allow start-ups to raise significant capital through decentralised launchpads. With smart contracts just around the corner, and native tokens already live, the time for Cardano-focused start-ups to raise funds is now. However, to date, there has been no IDO fundraising capability for high-quality projects looking to build for the Cardano ecosystem. With OccamRazer, this is set to change.

For a general introduction to IDOs, we think this article by CoinMarketCap is a great introduction. But prior to IDOs on OccamRazer getting underway, we invite all participants to familiarise themselves with the following article, which outlines the OccamRazer IDO process and requirements.

OccamRazer IDO parameters

There are several requirements to participate in an IDO on OccamRazer as a token buyer, and some additional parameters that are essential for participants to consider. These include:

  • Maximum contribution per wallet To ensure an even and fair distribution of IDO tokens, there will be a cap set on the maximum contribution one wallet address can make to an IDO. No one will be able to contribute more than this parameter, set by the pool originator (i.e. the project owners who create the OccamRazer pool);
  • Private or public pools ‒ If an IDO pool is private, participants will be required to hold more than a predetermined number of OCC tokens in order to participate in the pool. Both the required number of OCC and time held is set to a minimum system value by the OccamDAO, but can be increased by pool originators;
  • Whitelisting status ‒ Some pools may require their participants to be whitelisted, i.e. meeting KYC requirements or a minimum accredited capital status. If the pool is set up to be whitelisted by the pool originator, participants need to comply with whitelisting requirements;

Next, we will describe the IDO process: how it works, who are the subjects to the process, and what features are important to consider. Finally, we will discover what participants should know to maximize the odds of successfully participating in an IDO on OccamRazer.

What does the IDO process look like?

Let’s now explore the general mechanics and flow of the IDO process. We will take you through this process step-by-step, describing how it will work and look for every participant:

  1. The first step is for a pool originator, i.e. the team or “fundraiser” behind a project launching through an IDO on OccamRazer, to create a pool. To do so, the pool originator funds the OccamRazer pool with a fixed amount of its project tokens; which when multiplied by the fixed price of the token, equals the desired raise amount or the ‘hard cap’;
  2. Once the pool is funded and opened, the fundraising process can begin.
  3. If the pool originator/fundraiser holds a ‘Verified’ status, OccamDAO will buy out a defined percentage of the total tokens provided by the pool originator. The ‘Verified’ or ‘ProjectX’ selection criteria will be discussed in a separate article. These tokens are reserved for the Continuous Ecosystem Diversification (CED) procedure and are rewarded to OCC stakers on a pro-rata basis (see below). As discussed above, only those with greater than ~US$2,000 worth of OCC tokens staked for ~7 days (both parameters subject to change) are entitled for CED rewards.

If at some unspecified time in the future we decide to raise the OCC requirement either due to a price decrease or for other unforeseen reasons, we will warn our community far in-advance. The same applies to the holding time threshold. Note that, for those IDOs beginning in May 2021, the thresholds are 7 days holding at least 150 OCC. This means that for all the IDOs that begin in May, 150 OCC is enough to be eligible for CED.

1. A percentage of the pooled funds are reserved for community members who opt and are eligible for the ‘Autoinvest’ program. The exact mechanics of the Autoinvest functionality will follow in the coming articles and will be introduced to the platform in June;

2. Finally, a percentage of the total pooled project tokens are reserved for the direct purchase. There are three types of pools:

(i) Public: anyone can participate;

(ii) Private: initially only community members with >75 OCC (subject to change) staked can participate. This setting will normally apply to heavily oversubscribed pools. This will later be at the discretion of the pool originator;

(iii) Whitelisted pools: only traders meeting certain criteria can participate. The criteria is announced well in advance, for example a KYC approved status;

3. As soon as the pool is filled, a swap of project tokens for contribution tokens (USDC/ETH) happens, initiated by the user clicking ‘Claim’ on our interface. Note, that if the pool is not filled when its lifetime expires (or if the soft cap is not reached), participants and pool originators are refunded with contribution and project tokens respectively.

4. As the final step, the contributed funds arrive to the wallets specified by pool originators, while project tokens reach the wallets of participants. It’s important to clarify the exact mechanics for each of the participant categories:

5. The CED procedure rewards are distributed on a pro-rata basis across all the stakers holding >$2,000 in OCC tokens. This means that if one holds e.g. 5,000 OCC and the total balance across the wallets with >$2,000 in OCC tokens is 100,000 OCC, the said staker will be awarded 5% of the 20% (1%) of the total pool supply;

6. The details of autoinvest function will be revealed in a separate article closer to the time it is live;

7. The eligible participants (e.g. those holding >75 OCC if the pool is private) will be rewarded on a first-come-first-served basis.

8. Those who have participated in the pool will also benefit from OccamRazer Rebate rewards on a pro-rata basis. Details of this will arrive in a separate dedicated OccamRazer Rebate article.

9. Pool originators receive funds and the OccamDAO distributes the CED rewards across stakers.

These are the main summarised points of our IDO mechanisms and core features, although we will of course deliver more information to our users as our ecosystem evolves, should any of these parameters or concepts change.

We hope you are as excited as we are to begin participating in IDOs on the OccamRazer platform!

Make sure you follow Occam.fi’s social media channels to stay up to date with the latest news:

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store