GMD Protocol, a yield aggregator based on GMX, has launched the GMD Launchpad. The launchpad will prioritize projects based on their relevance to GMD and their own quality. GMD will conduct due diligence on projects and set soft and hard caps on token sales on the launchpad. When the sales reach the soft cap, the token price will linearly increase until it reaches the hard cap.
Flawed Sales Model
In recent months, Arbitrum projects have achieved great success, with some projects raising millions and good token price movements. However, early investors have suffered losses due to the flawed fair launch model, where non-presale participants always buy at cheaper prices. For instance, $TROVE presalers have experienced a -45% loss, as many exited at a loss due to no post-launch buy pressure. The “fair launch” model is effective for developers and teams as they can extract the maximum amount of money from the market. However, since most of the demand has already been met, the token lacks buy pressure after liquidity is added. Additionally, the low allocation for liquidity also contributes to the short-term loss. Therefore, the market needs a better alternative where early investors are rewarded for taking additional risks.
Investors <> Projects Connection
The biggest challenge for new projects is to connect with potential investors to raise funds. On the other hand, many investors are looking for high-quality projects to invest in but lack the due diligence/connections to discover them early. GMD Launchpad aims to bridge this gap by finding, analyzing, and introducing good new projects to investors.
In this case, GMD and esGMD stakers will have priority to participate. We will also prioritize projects built on top of GMD or projects that give extra benefits to our token holders.
The GMD team will personally conduct due diligence on all projects that apply to be on GMD Launchpad. Our founder, Saul Goodman, will advise them on tokenomics and the launching/managing process and ensure they have a solid plan before deployment. At the end of the process, Saul will write a review thread about the project for his degen audience.
Additionally, projects on GMD Launchpad can join a joint marketing plan, where we introduce them to GMD ecosystem participants. We will also connect them to our partners to explore possible further synergies. For example, they can partner with Trader Joe to launch a Liquidity Book market and possible LB management strategies. Or they can work with Buffer Finance to build on top of BLP. In short, if we like the project, we will support it in every way possible.
In return, the GMD team hopes to receive some form of benefits for our ecosystem, such as a fixed listing fee, seed investment allocation for the GMD treasury, token airdrop for holders, etc. These will be contingent upon discussions between GMD and the project.
The Launchpad will have a soft cap and a max cap. After the soft cap has been reached, the token price will go up linearly based on the soft cap oversubscription amount, but it will stop when the hard cap is reached. At the end, all pre-salers will receive tokens at the same final price. This model allows for price discovery when demand exceeds the project’s need or expectation but also has a hard cap to ensure upside potential for early investors to compensate for them taking more risks (since they invest before launch).
For example, if Project A has a soft cap of 100k and a hard cap of 120k with an initial price of $1, the final price would be $1.2 if the hard cap is filled.
This will be our main model. However, we will also add dutch auctions(Bond protocol), price curve (Mugen), and overflow (Pancakeswap IFO) to meet different needs of different protocols. When you apply to launch on GMD, we will help you decide on which model is best for your protocol/ tokenomics.