WingRiders: On-Chain Launchpad V2 Including Pro-Rata, Vesting and More

[GENERAL] Name and surname of main applicant

Catalyst Rider

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

5

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Implementing a new pro-ratа schema for the existing WingRiders Launchpad will be an alternative to the currently available FCFS schema, also enabling vesting for new tokens in a non-custodial fashion.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

No parts of the solution will be open-sourced as we propose extending an already existing and operating closed-source solution. We do plan on open-sourcing the on-chain contracts once the codebase is well-established and has been battle-tested by more launches.

[METADATA] SDG rating

N/A

[SOLUTION] Please describe your proposed solution.

We propose implementing a new feature for the existing WingRiders Launchpad product - a new overcommitment schema that can be used by projects launching their tokens as an alternative to the currently available first-come-first-served overcommitment schema. While both would support the tiering system and all other launchpad inherent design benefits especially the trustless and automatisation part.

The solution includes changes to existing smart contracts to support the pro-rata schema in addition to the existing first-come-first-served one, and changes to the UI and infrastructure to provide a smooth and pleasant user experience.

Accepting and implementing the proposal would significantly benefit various groups within the Cardano ecosystem. Emerging projects would gain more options for token launches, while contributors would have a wider selection of new launches to choose from. The ecosystem as a whole would see increased community engagement and the attraction of new projects, addressing an infrastructural need. In the realm of DeFi, this move would introduce more liquidity and trusted tokens into the open market. Investors would benefit from more diverse investment opportunities and a broader portfolio as well as a potential positive impact on the value of ADA as a measure of ecosystem maturity. Lastly, Stake Pool Operators would benefit from an increase in fees, and rewards due to more projects, launches, and transactions on the network.

The pro-rata overcommitment schema is a way to deal with situations when contributors provide more funds than was anticipated by the launching project without the project wanting to refuse these funds out of transparency reasons. One way to solve that situation would be to calculate how many funds all contributors provided together, then calculate a share of each contributor compared to the whole value, and use that share to determine the respective rewards. All tokens above the user's share necessary to reach the maximum commitment set by the project are then returned to the contributor. This way all users get a fair shot in participating in the launch regardless of the time when they provided their contribution.

Example:

Say the project owners dedicated 300 EX to distribute as rewards, and have set the max commitment to 100 ADA. Whale, Alice, and Bob contributed 140 ADA, 20 ADA, and 40 ADA respectively. Clearly, the contributed sum of 200 ADA overshoots the max commitment, and that might have something to do with Whale’s activity. Pro-rata is applied as follows: Whale gives 70 ADA and gets 150 EX and 70 ADA back. Alice gives 10 ADA and gets 50 EX and 10 ADA back. Bob gives 20 ADA and gets 100 EX and 20 ADA back. This way each contributor gets some tokens proportional to how much they contributed, and the project gets its 100 ADA..

Note: This is just an illustrative example and the actual mathematical implications used in the released solution might be different.

Additionally, we propose putting more research into ways to mitigate the effect whales and speculators can have on the launch events, one of those features being allowing partial locking of the rewards claims into vesting contracts. The usage of the vesting option with the exact configuration would be up to each project to decide based on their business requirements. This would enable and empower even more complex token launch strategies of projects aimed at passing their distribution of tokens via various vesting tiers of their token

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

Accepting this proposal will positively impact the following groups:

• Projects: having more options when launching their tokens allows greater flexibility, more control, and better alignment with the goals the project wants to achieve will attract more projects to the ecosystem and inspire creative minds to try new and brave things, knowing that their initial token launch and utility is well covered.
• Contributors: more options and models of launches to choose from. Potentially new emerging projects attracted by the specifics of the pro-rata model.
• Ecosystem: creating such opportunities for investing in more projects will bring more value to the ecosystem and its base ADA currency by allowing more users and more projects to engage in the Cardano blockchain. Moreover, spreading the contributions over the whole launch duration helps to reduce congestion which can be an issue in the first-come-first-served schema.
• DeFi: giving more space for newly launching projects directly benefits other operating DeFi projects by bringing more liquidity and new tokens into the open market.
• Investors: more options to invest in the projects they like, and more options to diversify their portfolio. The launchpad serves as an additional layer of trust to confirm there is community backing behind the project with a lot of security features that are built-in by design
• SPO: having more projects and more launches means more transactions processed by the network, more fees, and more rewards for the stake pool operators.

Integrating the pro-rata overcommitment schema enhances the flexibility and autonomy of projects launching their tokens via the WingRiders Launchpad platform. It offers more choices concerning how they want to deal with situations when the demand far overshoots the supply. In general, it is not obvious what solution is the best for these kinds of situations and if there is one at all, so it would make sense not to enforce one chosen schema on all projects but allow them to choose for themselves from multiple.

What is perhaps even more important is that the solution reduces the risks for the Cardano ecosystem as the proposed pro-rata schema doesn't constitute a brand new project with all the associated problems, but instead proposes an organic and natural extension to a battle-tested solution already in use on the mainnet.

Putting more research into vesting options integrated into launches provides additional safety mechanisms against whales manipulating the market and promotes a healthier investment culture in the Cardano ecosystem and beyond. manipulating the market and promoting a healthier investment culture in the Cardano ecosystem

The impact of the solution will be determined by how many newly launching projects on the WingRiders Launchpad platform would go for the pro-rata overcommitment schema and other options introduced by the proposal, and by whether both the project developers and the contributors can proceed with the launch safely and soundly with the funds protected.

All the relevant information we can extract and analyze will be shared on our community portals so the community can follow, engage in productive dialog, and stay updated on new findings.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

As WingRiders, recognized leaders within the Cardano ecosystem, we are uniquely positioned to carry out this project, ensuring utmost trust and accountability. Our capabilities are evidenced by our established presence, commitment to the community, and successful first-come-first-served model utilized in our Launchpad and its overall complex build quality and security and automation features

Technical Expertise: Our team's profound experience in developing and managing a premier DEX on Cardano, coupled with operating the sole functioning Launchpad, equips us with profound technical insights into blockchain and smart contract development. Familiarity with the nuances of the Cardano ecosystem enhances our competence in devising a secure and efficient pro-rata overcommitment schema. This schema will seamlessly integrate with the tested Launchpad platform, significantly mitigating potential risks for both projects and contributors.

Proven Track Record: Our credibility is fortified by a history of successful ventures, including the creation and consistent management of a top-tier DEX and Launchpad. Our unwavering dedication to excellence, user satisfaction, and active community involvement is manifest in our past achievements. This history serves as a testament to our promise of reliability and quality in fulfilling the objectives of this proposal, as validated by the dependable performance during the Orcfax FACT token launch.

Community Connection: Our deep engagement within the Cardano community through our current platforms has enabled us to forge substantial connections and understand the unique dynamics of this ecosystem. This rapport allows us to engage effectively with various stakeholders, assimilate feedback, and align our pro-rata Launchpad solution with the Cardano community’s explicit needs and expectations.

Launchpad Expertise: Our hands-on experience in the realm of Launchpad operations underlines our expertise in this domain. We are intimately acquainted with the practical challenges, potential opportunities, and industry best practices, driving our proficiency in this field.

Regarding fund management, we adhere to rigorous protocols ensuring robust financial stewardship and accountability. Our practices encompass the maintenance of transparent financial records, periodic internal audits, and strict compliance with financial reporting standards. We understand the imperative nature of prudent fund management and commit to upholding the highest standards of fiscal responsibility throughout the project's lifecycle.

Success will be multifaceted, reflected in both the seamless execution of the schema's integration and its adoption within the community. We will employ quantitative assessments (usage metrics, preference ratios, congestion statistics) and qualitative feedback (user satisfaction, client testimonials) to form a comprehensive evaluation of the project's impact.

The results of the project will be available in the WingRiders Launchpad app to all emerging projects launching their tokens as a new option they can choose during the initialization phase. Transparency and accessibility are paramount. We will ensure wide dissemination of the project's outcomes through the app, complemented by detailed publications, progress reports, and community forums, fostering an environment of collaboration, learning, and open dialogue.

Our primary objective is to architect and seamlessly integrate a pro-rata overcommitment schema within the established WingRiders Launchpad infrastructure. We will validate our approach's feasibility through rigorous testing phases, consultations with the launching projects, and iterative feedback cycles, ensuring our solution not only functions impeccably but also resonates with the community's needs and expectations.

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

Specification and research

• Description: Conduct detailed research on the exact implications of the introduction of an additional schema. During this stage the on-chain contracts checks are rethought and reverified, the mathematical specifications are updated, and the relevant code paths and infrastructure areas that need changes are identified.
• Expected Timeline: 15 days
• Outputs: A comprehensive plan detailing the mathematical specification for the pro-rata schema in the Launchpad. Identification and documentation of all affected checks and constraints for impending updates.
• Acceptance Criteria: A well-structured roadmap with infrastructure modifications delineated and segmented into actionable tasks.

Smart Contracts Development

• Description: Updating the Launchpad smart contracts to include the pro-rata schema as an available option to the launch creators. This includes changes to the on-chain verification contracts and the rewards distribution contracts.
• Expected Timeline: 30 days
• Outputs: A fully-featured suite of smart contracts. Capability to launch tokens using various valid configurations in the newly introduced pro-rata schema.
• Acceptance Criteria: Evidence of Pro-Rata Launchpad implementation shared publicly as a document outlining the validators and minting policies

Infrastructure Integration

• Description: Making the necessary back-end and front-end adjustments to enable a smooth launch participation experience through the WingRiders Launchpad platform.
• Expected Timeline: 30 days
• Outputs: Updated front-end and back-end infrastructure. Integration of the pro-rata option, as supported by the contracts, into the overarching Launchpad user interface and functional paradigm.
• Acceptance Criteria: A mostly operational back-end and front-end that supports the new schema in a testing environment. Ability to participate in test pro-rata Launchpad through WingRiders Launchpad UI for a limited time.

Testing and Fine-tuning

• Description: Testing and optimizing the infrastructure and the smart contracts. The testing includes a comprehensive suite of unit tests for the relevant schema-specific changes, integration tests to ensure the whole launch flow is working as expected with the new schema, and property-based tests to validate the mathematical assumptions and properties of the newly developed schema. Special attention is placed on making sure the previously valid scenarios are still working as expected. The contracts are evaluated and optimized, ensuring the lowest possible fees for the users.
• Expected Timeline: 15 days
• Outputs: Execution of exhaustive tests across all project levels. Identification and rectification of any existing bugs or issues.
• Acceptance Criteria: A project devoid of bugs, with contracts optimized to minimize end-user fees. A document listing all the issues encountered and addressed during this phase. Ability to verify that the issues aren’t present through the WingRiders Launchpad UI, for a limited time.

E2E testing & Audit

• Description: Full end-to-end testing of the new features on the pre-prod network. The testing covers all relevant scenarios, including the launch creation, contributors' commitments, on-chain rewards calculation, verification, and distribution. The case of launchpad overcommitment state is tested with all possible configuration options to ensure the user experience is superb and the rewards distribution behaves exactly according to the specification.
• Expected Timeline: 30 days
• Outputs: Implementation of all relevant end-to-end tests. Verification of user interactions.
• Acceptance Criteria: Assurance that user interactions yield the desired results without any unforeseen complications. A document listing all the issues encountered and addressed during this phase. Ability to verify that the issues aren’t present through the WingRiders Launchpad UI, for a limited time.

• Description: 
• Final milestone: The solution is finished and deployed to be used by projects and contributors. The final project completion report and video are publicly available through the WingRiders community channels.
• Marketing: ll community interactions throughout the whole development lifecycle. We will share news and relevant information and ask the community for feedback.
• Expected timeline: 15 days and throughout the whole development for marketing
• Outputs: 
• Final milestone: A fully functioning WingRiders Launchpad allows the use of the newly developed pro-rata schema.
• Marketing: we will provide blog posts and other overview documents highlighting the important development processes and achieved results
• Acceptance Criteria: 
• Final milestone: It is possible to create and go through the launch
• Marketing: Public community interactions driving engagement.

[RESOURCES] Who is in the project team and what are their roles?

WingRiders engineering team is composed of experienced professionals in blockchain technology and software development. Our team members stand behind projects like Adalite, Yoroi wallet, firmware for hardware wallets Trezor and Ledger (bringing them to Cardano), blockchain explorer for Emurgo and a whole plethora of FinTech products.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

The estimates assume the implementation of the quasi-proportional pro-rata cut formula, withdrawal period, default tier max commitment, vesting support, and BE versioning:

Milestone 1: Specification and Research

• Milestone Budget: ₳45,000
• Resource MDs:
• Software engineer: 10
• Project manager: 0.5

Milestone 2: Smart Contract Development

• Milestone Budget: ₳68,000
• Resource MDs:
• Software engineer: 15
• Project manager: 0.5

Milestone 3: Infrastructure integration

• Milestone Budget: ₳168,000
• Resource MDs:
• Software engineer: 50
• Project manager: 2

Milestone 4: Testing and Fine-Tuning

• Milestone Budget: ₳31,000
• Resource MDs:
• Software engineer: 10
• Project manager: 0.5

Milestone 5: E2E testing & Audit

• Milestone Budget: ₳22,000
• Resource MDs:
• Software engineer: 5
• Project manager: 0.5

Final milestone & Marketing

• Milestone Budget: ₳35,000
• Resource MDs:
• Marketing specialist: 12
• Marketing strategist: 2
• Project manager: 1

Total Budget: ₳370,000

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The ecosystem would benefit from the introduction of new projects to Cardano, enhanced community engagement, and the satisfaction of an essential infrastructural need. In the DeFi sector, it would lead to increased market liquidity and the addition of new, trustworthy tokens. Investors would gain more investment opportunities, enhancing their ability to diversify portfolios. For Stake Pool Operators, the proposal promises increased network transactions, resulting in higher fees and rewards, due to a greater number of projects and launches.

The proposed addition of a pro-rata overcommitment schema is a carefully planned update meant to provide more opportunities for emerging projects starting their token launches in the Cardano ecosystem. This system gives projects more control, helping them manage the launch process more effectively.

By adopting this proposal, we will enhance the availability of Cardano's infrastructure. It prepares the platform for future expansion, allowing emerging projects to easily use existing solutions instead of spending resources to build the same systems repeatedly. This approach not only saves time and effort but also represents a smart use of resources, contributing to the overall growth and efficiency of the Cardano ecosystem. This plan highlights our strong commitment to offering real value for money, strengthening the foundation of the Cardano community, and encouraging a stable environment for long-term development and success.

[IMPORTANT NOTE] The Applicant agrees to Fund Rules and also that data in the submission form and other data provided by the project team during the course of the project will be publicly available.

I Accept