What is a DEX Launchpool in Web3 & NFTs
A DEX Launchpool is a decentralized or centralized platform where users can stake (lock up) their existing cryptocurrency tokens or NFTs to earn newly issued tokens from upcoming blockchain projects. Think of it as a form of "yield farming" specifically tailored for new project distribution. it's a win-win scenario.
A DEX Launchpool offers a low-risk, passive income stream, allowing you to acquire new, potentially high-value tokens without direct purchase, simply by leveraging assets you already hold. it also grants early access to innovative projects, positioning you to be among the first to benefit from their growth.
New Projects and Campaigns
Our Platform provides a fair and decentralized method for initial token distribution, helps build a loyal community of early adopters, generates crucial initial liquidity, and significantly amplifies project visibility within the broader Web3 ecosystem.
The Functionality of Staking an Existing Token
The core of a Launchpool lies in its staking mechanism. Here’s a detailed breakdown of how it functions:
- Selection of Staking Assets: Each Launchpool campaign will designate specific existing tokens or NFTs that are eligible for staking. For instance, a project might require you to stake a stablecoin like USDC, a major cryptocurrency like ETH, BNB or any other native token. In the evolving NFT space, we are also seeing innovative Launchpools where specific blue-chip NFTs can be staked to earn new tokens or even other NFTs.
- Smart Contract Automation: The entire process is governed by smart contracts deployed on a blockchain. When you choose to stake your tokens, you're interacting directly with these immutable contracts. This ensures transparency, security, and automates the reward distribution process without requiring intermediaries.
- Locking Mechanism: To participate, you "lock" your chosen assets into a designated staking pool for a predefined "farming period." This period can range from a few days to several weeks or even months, depending on the specific Launchpool campaign. Locked tokens cannot be unlocked until 7 days (168 hours) have been run out but you retain full ownership.
Total Reward Allocation:
$100,000 worth of NFTs to claim.
- Proportional Reward Distribution: Your earnings are directly proportional to the amount of digital assets relieve to the total amount staked by all participants in that specific pool. Rewards are typically calculated and accrue on an hourly or daily basis
- Claiming Rewards: You usually have the flexibility to claim your accumulated rewards at any point during the farming period, or you can wait until the campaign concludes. Each claim transaction will incur a small network (gas) fee, payable in the native cryptocurrency of the blockchain hosting the smart contract (e.g., ETH or Ethereum-based Launchpools, or BNB for BNB Smart Chain).
- Unstaking and Withdrawal: Once the farming period ends, or if you decide to exit early (depending on the Launchpool rules, as some offer flexible unstaking), your original staked tokens, along with any unclaimed rewards, can be withdrawn back to your wallet.