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Seeded Network: A Borrowing and Lending Protocol With a Twist

CryptocurrencyNov 19, 2021 03:00PM ET
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Seeded Network: A Borrowing and Lending Protocol With a Twist

Project incubators, supporting the launch and growth of crypto startups, have helped to meet the increasing demand for the development of defi solutions in the space. Unfortunately, current tiered models mean that eventually, every legitimate launchpad token rises to a price level where new entrants are prohibited from affording new project tier allocations. This incentivizes investors to find an alternative launchpad with a cheaper token price and, therefore, a better chance of receiving a decent allocation to new projects. Over time, however, this degrades the quality and increases the risk profile of project offerings on new launchpads.

This problem is known as the launchpad dilemma, based on the thesis by NewField Fund. Attempts to address the issue have so far revolved around diluting the token supply, lowering the token requirements per tier, or conducting a lottery for non-token holders. However, in all cases, the fundamental problem of accessibility has remained.

A new approach to project incubation is now being developed by the team behind Seeded Network, aiming to deliver a truly fair solution for all participants by leveraging its built-in defi solutions.

What Is Seeded Network?

Seeded Network is a borrowing and lending protocol with a twist on traditional defi integration to deliver a project incubator product that offers value beyond the standard launchpad approach. It focuses on developing a range of defi products to synchronize network usage, add utility to its native $SEEDED token, and incentivize the use of its incubator.

Seeded Network’s flagship lending protocol is the first-of-its-kind on Solana to allow liquidity provider (LP) collateral, enabling participants to use LP tokens as collateral and borrow other assets while also providing utility to other parts of the network.

How Does It Work?

Seeded Network’s defi solutions are powered by Solana’s unique Proof of History and Proof of Stake hybrid architecture, delivering a high-performance, 400,000 transactions per second, less than $0.01 gas fee, decentralized blockchain from which to scale for mainstream adoption.

In solving for true fairness, Seeded Network seeks to avoid the launchpad dilemma by utilizing a no-tiered system that enables eligibility regardless of the number of tokens held. It also employs a decentralization model that combines more centralized incubator support with a fully decentralized product to allow projects to set up their own fundraising process via its smart contracts. And, by incorporating product usage incentives, Seeded aims to allow the ecosystem to harmonize and thrive, leveraging the power of its lending, borrowing, and staking solutions to promote usage of its incubator.

Project Incubator

Investors can access hand-selected projects that have passed the incubation process under an updated allocation model that delivers a more sustainable weighted-average system with different risk tolerances from Seeded’s array of defi solutions.

Projects undergoing incubation are granted access to Seeded’s network of professional marketers, developers, advisors, graphic designers, and community moderators with hands-on support from the Seeded Team to raise funds from all over the world to successfully launch and grow their platforms.

Borrowing

Seeded Network allows participants to use their existing assets and LP tokens as collateral to borrow native tokens, including its own $SEEDED token. Borrowed $SEEDED can then be staked for 10 days before the launch of an incubated project to gain access to an allocation. While these staked tokens can be withdrawn during this window, doing so incurs a 30% penalty, shared equally between stakers, the Seeded treasury, and the Seeded community choice charity.

Lending

Seeded’s lending solution enables users to lend out their favorite assets for competitive returns and access to the Seeded ecosystem. Its Locked Lending product allows users to lend out their $SEEDED tokens to receive a bonus double allocation for an incubator project. Tokens must be locked for a 90 day period which other users can borrow and stake to take part in incubation, though can be withdrawn early with the same 30% distributed penalty.

Staking

Users can also stake their unborrowed $SEEDED tokens for a 7-day duration before the launch of an incubator project to receive an allocation. As they are unborrowed, these staked tokens can be withdrawn at any time without penalty.

Future Development

The Seeded Network team has put an emphasis on continuous development, awareness, and solving for true fairness to prioritize user experience.

Following recent partnerships with Chainlink and Waggle, Seeded’s smart contracts will be audited by the leading security platform CertiK in the run-up to launching its initial incubator, lending, borrowing, and staking products. It then plans to incorporate synthetics, stablecoins, farming, and additional defi incentive solutions into its ecosystem over time.

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Seeded Network: A Borrowing and Lending Protocol With a Twist
 

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