Diane Die
Cloud pooling has become a human-powered engine to expand the size, scope, ambitions, and capabilities of the DeFi ecosystem.
From day one, the spirit of Web3 technology lies in all two things: decentralization and democratization. In its early days, cryptography provided people with a new way to store and send value on their own terms. Nowadays, decentralized finance (DeFi) gives people the opportunity to access a variety of financial services provided by autonomous organizations. However, I believe that one mechanism contributes more to the innovation of cryptocurrency history than any other. It’s token-based crowdfunding.
Token-based financing has emerged in many forms over the years, each promising to democratize the relationship between investors and early-stage projects. These first Initial Coin Offerings (ICOs) became popular in 2017, connecting an unprecedented number of investors and an unprecedented amount of cash to new investment opportunities around the world. This form of token-based financing has had a huge impact on the industry, pushing cryptocurrencies into the mainstream.
From ICO to IDO
Token-based financing has returned in several new names and formats after many cases of regulatory uncertainty and abuse have contaminated the ICO industry. Some of these included the Security Token Offerings (STO), which promised to appease regulators, and the Initial Exchange Offerings (IEO), which provided investors with an additional layer of due diligence and ease of use. .. Since then, the initial DEX offering (IDO) has made it possible to activate tokens on decentralized exchanges.
However, as the field of token-based financing continues to evolve, the value of decentralization and democratization, which were characteristic of the industry, has diminished in the background. ICOs, STOs, IEOs, and other forms of token-based financing have become increasingly costly and time-consuming processes in early-stage projects, engaging companies and entrepreneurs who need them most, especially in development. It’s out of reach for the companies that are there. region. IDO provided easier access to funding tools, but did not provide a means of creating long-term market liquidity.
These companies and entrepreneurs are not the only ones affected by the lack of accessible financing mechanisms. The entire DeFi community will be affected. Many projects and platforms will not be built without the right funding. As a result, the pace of innovation slows down and the entire DeFi community gets worse.
But it doesn’t have to be like this.
What is cloud pooling?
We recognize the need for an equal opportunity token-based crowdfunding mechanism. Anyone can use cloud pooling to connect with investors around the world and raise funds with minimal initial capital. This is a one-stop token distribution solution that serves as a solid foundation for raising funds, building communities and creating deep liquidity in new token markets, regardless of bid size.
To launch a crowdfunding campaign, creators will deposit a 0.2 settlement fee (CRYPTO: ETH) to provide a set of tokens used for crowdfunding and askside liquidity. The token issuer also sets the initial public offering price, softcap goals, and start and end times for cloud pooling campaigns. After that, anyone can bet capital and participate in the campaign.
The process of conducting a cloud pooling campaign is designed to protect investors at several levels, similar to the cryptocurrency lunchpad platform that provides investors with screening.
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Cloud pooling is open to all projects, but it is designed to prevent front running if participants use the timing of their investment to make unfair profits.
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Crow pooling also prevents the lag pull that occurs when the token issuer drains poolside liquidity shortly after the funding event is complete.
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Cloud pooling eliminates the need for token inflation. This prevents speculators and “dumping farmers” from taking advantage of the supply of inflated tokens.
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Combining author accessibility with investor security, Crowdpooling meets the needs of both crypto projects and their investors.
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Cloud pooling has a very low barrier to entry, so there is virtually no limit to the scope of projects that can be funded using cloud pooling. The mechanism is so flexible that the size of each fundraising campaign is virtually unlimited.
Cloud pooling and Web3
Cloud pooling is more than just a way to get your project on track. Users and investors are incentives to stick for the long term because of the way liquidity providers (LPs) are incentives to support new and emerging projects. This creates “sticky capital” that does not escape the endless pursuit of higher yields.
In this way, cloud pooling is in perfect alignment with the value of Web3 in decentralized and democratized finance. The project will have access to the necessary funding and tools for the growth of a sustainable grassroots community. As a token-based financing mechanism, it eliminates the need to raise funds from traditional VCs, which are often inaccessible to builders in many parts of the world. At the same time, LP rewards promote sustainable growth and thwart the pressured dynamics of traditional token sales models.
Cloud pooling also plays an important role in larger DeFi spaces as an equal opportunity financing mechanism. Cloud pooling is open to almost every project you want to use, so the broader DeFiI community can choose which projects they want to invest in for their own innovation and growth.
Tools like Crowdpooling give the DeFi community the ability to access unlimited creativity, the most valuable resource of all. Lowering the barriers to entry can create opportunities for people of all disciplines to use to build great platforms and tools for everyone.
So what are we waiting for? Let’s make it!
About the author
DODO co-founder Diane Dai is a prolific innovator and sort leader in decentralized finance. Diane was recently selected for the attention of Rising Woman and Hurun Report in their under 30s on Wylex’s 2021 cryptocurrency power list.
