What is Skyward Finance?
Fully permissionless open sourced launchpad that allows Projects to launch their tokens without any liquidity with the best price discovery mechanism that’s resistant to bots and sybil attacks.
What are the advantages of Skyward Finance?
- Possibility to launch token without any liquidity
- A price discovery mechanism that’s resistant to bot and sybil attacks which cannot be manipulated
- Sales are not instant! On the contrary, it is split linearly over a duration of the sale so bot’s reaction time doesn’t have an advantage over a human
- Pump and Dump is not possible because Skyward Finance doesn’t allow you to immediately resell token in the same pool
- There’s no limit orders so you can’t artificially pump a price by withdrawing your orders; On the contrary, this will create more damage since you will actually drop the price comparing to the price you paid for this token
- Ability to raise in any token
- Specify which token you’d like to receive
- Can launch multiple sales with different tokens simultaneously
- Maximize raised capital
- Immutability to price manipulation allows Founders to maximize their capital based on fair market value established by demand
- Optionality to support referral program - allows to create incentives for influencers to make a viral marketing campaign
- $SKYWARD token is not required to create a sale or to participate in a sale
- Nobody has control over platform’s contracts
- Main smart contract is autonomous so anyone can create a sale
- The Treasury is permissionless. Redeeming is only possible with $SKYWARD token through a smart contract.
- Runs natively on NEAR Protocol so it gives an advantage of NEAR’s scalability and cheap transactions
- Investor only need only 2 transactions to enter and leave the sale and get the fair price
- Possibility to limit sale participation through external smart contract
- Each sale may opt in KYC provided through external smart contracts
- Can enable NFT drop access - create a sale only for those that have a certain NFT
- Sale access customization
What is a $SKYWARD token and why do you need it?
$SKYWARD is a native fungible token of Skyward Finance platform with a total supply of 1,000,000 (1 million) tokens.
All $SKYWARD tokens are tied to Skyward Finance Treasury and represent a share of the ownership of the Treasury balance.
90% of $SKYWARD tokens are going to be sold through the open auctions on the skyward platform, proceeds from which are deposited directly to the Treasury in addition to fees collected on a platform. The Treasury also receives 1% fee from every sale.
What is $SKYWARD token distribution schedule?
Early Adopters: 1%
- Unlocks begins on August 1st, 2021 and linearly vesting for 1 month
Founders and Ecosystem Incentives: 9%
- Unlock begins on January 1st, 2022 and linearly vesting for 6 months
Treasury Sale: 90%
- 25% July 1, 2021
- 20% August 1, 2021
- 15% September 1, 2021
- 10% October 1, 2021
- 10% November 1, 2021
- 10% December 1, 2021
What are the fees on Skyward Finance?
To kick off a sale you need to deposit 10 NEAR (to prevent too many random sales). In addition, the platform charges a 1% fee from the supply of the token that is being offered for sale, and 1% of a token used for purchasing.
For example, you sell $MOON for $nUSDT. Platform will charge 1% of all $MOON tokens that are being offered, plus 1% of all proceeds in $nUSDT, and plus 10 NEAR.
How does the Skyward Treasury work?
Example of sale #1: $SKYWARD Sales
Let’s use the 25% $SKYWARD sale as an example. Imagine there was 1 Million NEAR added; thus, 1 million NEAR is a demand and 250,000 $SKYWARD is a supply. For simplicity, we will keep the demand fixed in this example.
Once sale is over, and 250,000 $SKYWARD is sold for 1,000,000 $NEAR, all 1,000,000 NEAR is being deposited to the treasury. This means that every 1 $SKYWARD token is backed by 4 $NEAR tokens after the sale.
What can you do with it?
Now you have 2 options:
- Add $SKYWARD to Ref Finance and expect a higher price due to expected increased size of the treasury in the future (since every sale on Skyward Finance has a 1% fee on the token that is being sold and 1% on a token that’s being to purchase offered token). Thus, Skyward Treasury will continuously increase.
- Redeem $SKYWARD. If you redeem 1 $SKYWARD, you receive 4 $NEAR from the Skyward Treasury and the 1 $SKYWARD is burned (removing it from the circulation forever). This operation doesn’t affect the rate of $SKYWARD.
Example of sale #2: MOON (non-$SKYWARD sale)
Someone wants to sell 500,000 $MOON tokens for $nUSDT. Let’s imagine that there were 2,000,000 $nUSDT deposited (for simplicity, let’s keep it fixed).
This means that 5,000 $MOON (1% from 500,000 $MOON) tokens and 20,000 $nUSDT (1% of 2,000,000 $nUSDT) were added to the Skyward Treasury. So right now Skyward Treasury has:
- 1,000,000 $NEAR
- 20,000 $nUSDT
- 5,000 $MOON
This means that the incremental value of 1 $SKYWARD token increased by 0.08 $nUSDT (20,000 $nUSDT / 250,000 $SKYWARD) and by 0.02 $MOON (5,000 $MOON / 250,000 $SKYWARD).
Thus, all non-$SKYWARD sales after 25% sale #1 of $SKYWARD are going to accumulate value until the $SKYWARD sale #2.
What happens at $SKYWARD sale #2?
At this stage, we anticipate that $SKYWARD will be traded on Ref Finance. Since Skyward Finance platform does not have an ability to set the price, it means that sale #2 can potentially create arbitrage opportunities.
Example 1: The expected rate of $SKYWARD on the sale #2 is lower than the price from the sale #1 - thus, it’s an arbitrage opportunity. You can enter the sale #2 and receive cheaper $SKYWARD (than the first sale) and then redeem the $SKYWARD token to Treasury or sell $SKYWARD on Ref to receive an additional value. Skyward Treasury is tied to a Circulating supply; thus, in this scenario, all participants of the first sale are being diluted, while new entrants can receive an instant profit.
In this case, the $SKYWARD can be either redeemed from the Treasury or traded on Ref Finance. Redeeming $SKYWARD gives you a nominal value that’s backed by Skyward Treasury. Ref Finance in theory should have a different value attached to $SKYWARD that will be based on the future expectations for the size of the Skyward Treasury and Circulating Supply.
Example #2: The expected rate of $SKYWARD on the sale #2 is higher than the price from the sale #1. In this scenario, existing holders of $SKYWARD will benefit from the sale #2, because the Treasury backed price will be increased.
How does a sale on Skyward Finance work?
Every sale has at least one week grace period so the community can assess the legitimacy of the project; Simultaneously, this time allows Projects to create marketing campaigns for their sales and create awareness among potential investors.
Founders can sell their projects’ tokens to investors and community members over a fixed period of time in exchange for a token they chose as a pair and with the distribution happening every block.
- Selling 7,200 $MOON for $nUSDT over 1 hour duration.
- Participants have deposited 14,400 $nUSDT into the pool before the sale has started.
- Alice in particular deposited 3,600 $nUSDT (25% of total)
- Current price per 1 $MOON can be calculated by dividing Total Deposited Amount by Total Available Supply: 14,400 $nUSDT / 7,200 $MOON = > 1 $MOON = 2 $nUSDT.
- Total number of distribution events (aka number of auctions in a sale) can be calculated by converting duration in sale in hours to seconds: 1 hour = 60 minutes = 3,600 seconds (60 minutes x 60 seconds). Assuming that 1 block = 1 second => There is a Total number of 3,600 distribution events in this sale.
- Since the amount of $MOON token for the sale is fixed, this means we can find out how many $MOON tokens will be distributed per 1 second by dividing Total Available Supply by Total Number of Remaining Distribution Events: 7,200 $MOON / 3,600 seconds or blocks = 2 $ MOON tokens per 1 second or per 1 block.
- Now we can figure out how many $nUSDT tokens Seller will receive at current Demand (assuming this doesn’t change) every block: 14,400 $nUSDT / 3,600 seconds or blocks = 4 $nUSDT per second or per block.
- We can calculate how much $MOON Alice will receive after a first block and how much $nUSDT she will spend
- 2 $MOON x 25% = 0.5 $MOON - Alice will receive per block/second assuming Demand remains constant
- 4 $nUSDT x 25% = 1 $nUSDT - Alice will spend per block assuming assuming Demand remains constant
Each sale may opt-in into allocating up to 5% of the offered token into a referral pool. If a participant comes through a referral, then both the participant and the referrer equally splits allocations from the referral pool corresponding to the deposit of the participant. For example, in the example above Alice and her referrer would be able to split 25% from the 5% of $MOON pool, so both Alice and the referrer would receive 50% * 25% * 5% of the 7,200 $MOON = 45 $MOON token. If the participant doesn’t use referral link, then the unused allocation from the referral pool is returned back to the sale creator.
Do people who entered the sale earlier get a better price?
Prior to the sale, the rate history is displayed for the informational purposes only. Everyone will get the same rate once the sale starts, but different amount of $SKYWARD based on their amount of $NEAR.