RGFL — Revenue Generating Fair Launch
RGFL aims to improve on DEX fair launches in the spirit of DAICO, a concept proposed by Vitalik Buterin to fund projects via smart contracts. Fair launch mechanisms have come some ways since DAICO was suggested. RGFL uses Swap DEX fair launch mechanics already used today, but improves on them, adding liquidity as well as revenue generation for both the project and all holders, from transaction volume.
RGFL — refund anytime, multiply liquidity, fund project & reward holders
Unlike DAICO, RGFL offers something like refunds to anyone, anytime, via DEX, as no presale period is needed. RGFL builds DEX liquidity a median of 4x more quickly than DEX & fair launch alone, by using an OLGE (ongoing LGE, like an ongoing sale), and a DEX/OLGE split, which lowers slippage via the OLGE, and redeposits into the DEX for increased DEX LD (Liquidity Depth). RGFL simply pays devs a portion of OLGE buy-volume at current prices, meaning that no team tokens nor voting on tap rates are needed for incentive. This faster liquidity growth is useful in fair launches with low liquidity & low price. Price mobility can be adjusted, in price discovery, wrt multiplying liquidity. A 4x liquidity growth is obtained with a median 50/50 split between DEX/OLGE. Higher or lower multiples can be achieved with higher & lower splits. A higher OLGE split may be ideal for early fair launches. This is to increase liquidity rapidly and improve price rationality during lower initial liquidity.
RTR — Rover’s RGFL & Rovlection Transaction Rewards token
Let RTR be a token launched using RGF for a project called Rover.Capital. We can optionally add Rovflection tokenomics (Rover’s Reflection tokenomics, like Safemoon, FEG, et al, but with added capabilities derived from Rover Fetch), whereby 5% + 5% rewards to holders and LD from every transaction, accomplished via a multiplier to all holders, and a 10% fee to the transactor.
RGFL & Rovflection Flow Chart
Using 3 50/50 Splits + Rovflection (optional):
- 50/50 DEX-OLGE Split
- 50/50 OLGE-APY Split // Optional APY split. No Impermanent Loss (single sided stake)
- 50/50 LD-Ops Split // Split to fund dev ops vs additional LD
- Rovflection // Optional tokenomics. Gives 5% to LD & holders in reflection + sends 1% to DAO & 1% to burn. Unlike typical reflection, it can additionally send directly to e.g. dao and burn addresses, and not only via a multiplier.
Rover Fetch — One Click RGFL
User sends funds (here as “USD”) to Fetch to get back RTR-APY, a staked token for RTR
USD is actually in the form of e.g. ETH on any EVM, but USD tokens may be supported also.
SPLIT 1: DEX-OLGE
=> DEX gets 50% USD, returns 50% RTR to Fetch
SPLIT 2: OLGE-APY: e.g. 1 token APY for every 1 token bought from OLGE; 50/50.
=> APY gets the 50% RTR, generates another 50% RTR to release rewards over eg 2y.
=> OLGE gets 50% USD, returns 50% RTR, in the same amount as DEX, to Fetch
SPLIT 3: LD-Ops: Split USD to LD & operations. In terms of 100%, it’s split as such:
=> 25% USD to funding project operations (dev, marketing, charities)
=> 25% USD to obtain RTR, from OLGE reserves, at DEX spot price
=> OLGE puts 25% USD + 25% RTR back into DEX LD using obtained RTR
Rovflection an optional tokenomics features that can reward e.g. 5% to DEX LD & holders every transaction, as per normal reflection, and directly sends another e.g. 1% RTR-APY (staked RTR) to DAO & 1% RTR to the burn address, which, unlike other reflection tokens, can be seen in every transaction that uses Rover Fetch.
The 50/50 RGFL Split
The 50/50 RGFL Split:
- Increases LD by 5x more than its reflection tokenomics alone
- Adds 25% more LD every transaction, meaning a 5x high LD/price growth rate
- Yields 4x improvement to LD/price growth in fair launch while funding dev for 50/50 split.
These results are explained below:
50/50 RGFL Flow by Buy/LD Ratio
A DEX recap of the “constant product model”, if needed:
1x Buy/LD activity:
100% buy from DEX would end in 2 USD * 0.5 RTR = K = 2, worth 4 USD, priced 4/1 USD/RTR
50% buys from DEX so that DEX ends up with 1.5 USD * 0.667 RTR = K = 1
50% goes to OLGE, gives buyer 0.50 USD of RTR at DEX spot or 0.50/1.50 * 0.667 = 0.222 RTR
25% of 50%, or 0.25 USD to OLGE, goes to operations & DAO wallets.
25% of 50%, or 0.25 USD to OLGE, goes to DEX LD, which gets 0.25 USD + 0.111 RTR
DEX then has 1.75 * 0.778 in USD * RTR pool = 1.3615 K
DEX LD in USD = 1.75 * 2 = 3.50 USD
Price USD/RTR = 1.75 / 0.778 = 2.25
LD/price changes from 4/4 = 1 in DEX only, to 3.50/2.25 = 1.55 with 50/50 RGFL
Result: 55% improvement to LD/price growth.
100x Buy/LD activity:
3.88x improvement is achieved in the 100x buy to initial LD case.
At 100x buy to LD: DEX price would normally grow by 10202x, yet LD would grow only 202x. The reader can change the numbers for 1x above to see this.
LD/price is 202/10202 = 0.0198 in DEX only
LD/price is 202/2602 = 0.077 in RGFL
50/50 RGFL thereby increases LD by 0.077/0.0198 = 3.88x per 100x buy/LD purchases, with a limit of 4x for this split, as OLGE buy volume (which automatically happens via Fetch) increases, and even faster given more sell volume.
At the limit:
4x improvement in LD/price with a 50/50 split as OLGE buy-volume via Fetch dwarfs initial LD.
Rover Fetch — 1 Click Total DeFi
Fetch implements RGFL and adds a 3rd split between OLGE & APY without impermanent loss.
RGFL improves on DEX fair launch mechanics in terms of liquidity, refund simplicity, dev funding, project longevity, and holder revenues.
RGFL improves fair launch DEX LD/price ratio by additional 4x wrt to DEX fair launch alone, with a median 50/50 split, and greater improvements at higher DEX/LD splits. RFGL achieves this via LD deposits at every buy during the 1-step Fetch operation.
RFGL advances fair launches in the spirit of DAICO.