An IDO platform, offering token and funding vesting, that also acts as an incubator and accelerator for the projects that perform IDOs through it.
Cardence is currently running on the Binance Smart Chain, BSC, prior to its launch on the Cardano network; slated to be at some point in mid-to-late 2022.
IDOs and Guaranteed Participation
IDOs on the Cardence platform differ from many others in the fact that IDO token purchases are completed through a fixed-price swap pool where users swap their tokens for the IDO listed tokens; this is opposed to the more popular method of sending tokens to a wallet address in order to receive the IDO listed tokens in return. Investors stake the platform’s native token, CRDN, to the platform to guarantee their participation in upcoming IDOs.
All wallets staking more than 4000CRDN tokens will be eligible for a share in an guaranteed allocation pool; where their allocation is relative to their “token weight score”. This score is determined by which pool the tokens have been locked into.
Each of these pools has a different staking length, from 30-180 days, and an associated multiplier, 1x-4x. These are then use to work out how much of the token allocation each member of the pool are allowed to purchase.
If all the tokens are not claimed by these staking participants there is the potential that a second round of token sale will be open to all interested investors on a first-come first-served basis.
There’re numerous proposed features of the Cardence platform that are designed to be of benefit to projects and investors.
A SmartMint tool allows projects to create fully customizable tokens, which can include inflationary and deflationary tokenomics. It is stated that tokens will be pre-security audited, although we know not by whom.
A portion of the funds raised in an IDO can automatically be locked for DEX liquidity. The quantity that is to be locked is specified during sale creation and this part of the smart contract must be fulfilled before any of the funds can be released to the project.
Marketers and Influencers can create dedicated referral links to an IDO on Cardence and are then able to earn tokens for marketing the project and bringing in investors.
Projects conducting presales through the Cardence platform can bring along their own whitelist of investors.
The release of a project's tokens can be set incrementally according to a pre-determined vesting schedule, decided on and locked in before the IDO is set in motion. This goes for both the team’s and the investor’s tokens; which can each be put on a different vesting schedule. This prevents investors buying the tokens through presale, where they're often much cheaper, and subsequently dumping them for profit during the first few day of trading. Doing this for the team’s token share is designed to de-incentivize rug-pulls.
When it comes to Cardence's native token, CRDN, the Cardence team’s share of the tokens, 15% of total supply, will be released over the course of 8 months, beginning September 1st 2021.
“Cardence gives the utmost importance to the vetting of projects to be onboarded”. This will be done via industry connections and an in-house team that also ensures the project receives the right support to grow.
It is also stated that some projects, called “certified presales”, will be vetted by the Cardence team or through on-chain community voting. It is unclear what extra level of certification will be given to these presales, the process involved, or how this vetting process differs from the vetting process of other projects. Seeing as Cardence states that the vetting of projects is deemed to be of the “utmost importance” should this extra vetting not be the normal procedure?
Cardence’s IDO took place on Binance Smart Chain, BSC, and the IDOs they’re hosting are also happening on BSC. It is not mentioned in Cardence’s documentation about how or when they will help projects transfer over to the Cardano network.