Coming Soon to xToken Terminal: The Origination App

We launched xToken Terminal a few months ago with the goal of providing projects with seamless access to fundamental on-chain primitives. The first app on Terminal — Mining — allows projects to deploy an easily configurable Uniswap V3 liquidity mining program in a few clicks. A process that used to take a few weeks or even a month now only takes a few minutes. Projects benefit from our permissionless plug-and-play contract architecture and smooth UX.

Mining is just the first app of five in the roadmap for Terminal. Today, we’re excited to introduce our next app: Origination.

What is Origination?

Origination is the On-Chain CoinList. Projects will be able to easily configure a few variables and launch a token offering in just a few minutes. Origination is flexible — among the use cases are:

• a conventional public token sale, where community members and institutions can invest in a project’s token in a few clicks
• a private token sale where a project can register an investor whitelist with allocations per address (registering a whitelist is a simple as uploading a CSV — we manage the merkleization and contract config)
• some hybrid of a public/private token sale
• Olympus-style bonding where a project accepts an LP token as payment and returns their native token or some other asset at a fixed ratio
• a merger transaction or other types of M&A where investors in one token accept conversion into another
• a crowdfunding sale where a person or team raise funds for a personal project or early stage idea

While these are the main use cases we have in mind, we also expect users and developers to discover new ones. Like all xToken products, our Origination contracts are designed with an eye towards composability. We fully expect protocols to tap into our capital origination contracts programmatically.

What can I do with Origination?

Origination offers many features of note, but we’d like to highlight one that we think showcases how powerful the new app can be. The feature relates to liquidity conditions common to public and private token sales.

For many offerings, including a cliff and vesting period is standard. For example, if an offering bears a 1 year cliff and 2 year total vesting period, an investor would be eligible to claim 0 tokens after 6 months, 50% of tokens after 1 year, 75% of tokens after 18 months and 100% after 2 years.

The crypto space moves fast and a lot can happen over the course of a vesting period. As it stands now, most vested tokens are paid out manually month by month or locked into a vesting contract and claimable only from a pre-specified address. This is undesirable for several reasons:

• What if an investor wants or needs to change their receiving address?
• What if an investor wants to sell part or all of their unvested position?
• What if an investor wants to collateralize their unvested position?
• What if a project doesn’t really want to manually distribute tokens to x number of investors every y months?!

With this in mind, when someone invests in an offering with a vesting period on Origination, they are minted an NFT representing their unvested position. The NFT holder reserves the sole right to claim tokens as they vest, allowing the holder to use the NFT as a composable asset within the Web3 ecosystem.

This architecture allows for a suite of use cases to develop on top — some simple and familiar and some yet to be discovered. We anticipate that an active market will develop for unvested tokens. We foresee larger investors syndicating their unvested positions via a network of angels, VCs and funds. We expect on-chain and off-chain lending markets to develop using unvested positions as collateral.

Looking Forward

We’re in the final stages of development on Origination. The contracts are audited and the UI is coming into form. We should be ready to launch shortly!

As such, we’re looking for launch partners. If you’re a project preparing your next fundraising round or an individual planning your next project, we want to hear from you. Get in touch with us in Discord and we can walk you through the platform and all it has to offer.

We’re excited to bring Origination to the world! Join us in Discord with any questions or comments and follow us on Twitter for updates. Stay tuned!

About xToken

xToken builds on-chain financial infrastructure. We provide projects with seamless access to fundamental on-chain primitives like liquidity mining and capital origination.