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Solanium is a decentralized fundraising launchpad platform on the Solana blockchain. Unlike other fundraising launchpads, Solanium uses a time-weighted token staking mechanism to facilicate decentralized fundraising and has a deep focus on UI/UX of the platform to better onboard new users to its platform and the Solana ecosystem in general.
IDO launchpads are essential for an ecosystem’s growth as it provides new protocols with the opportunity to raise funds to cover their operating and R&D expenses. Especially in a rapidly growing ecosystem like Solana, Solanium has already incubated some of the most prominent projects on Solana such as Port Finance (Borrowing and Lending) and Sonar Watch (Crypto performance tracker). In the long term, the protocol also aims to incorporate DEX trading in the future to allow immediate availability to the project’s token for trading on Serum DEX once the pool finalizes.
Objective 1: Utilizes a time-weighted token staking mechanism for decentralized fundraising.
Objective 2: Focus on UI/UX to attract more users to the platform to create network effect and growth the overall Solana ecosystem at the same time.
Objective 3: Be an all-in-one solution for Solana in the long term with integrated wallet, DEX, and transaction management in the long term.
SLIM is a native token of the Solanium ecosystem.
xSLIM tokens are non-transferrable, non-tradable, and only meant to be used within the Solanium ecosystem without financial values.
Design of the environment in which the tokens and users exist in
Despite the recent crash in the crypto market, we have seen significant growth in the Solana ecosystem in 2021. As implied by the total TVL within the Solana blockchain, the community has seen more and more traction with various dapps that surfaced in the public’s eyes and gained immense success. Some examples are Raydium, Serum, and Mango Markets.
(Source: DefiLlama)
As more and more developers build projects on Solana, there are needs to projects to raise capital to cover its operational and R&D expenses. Consequently, Solanium’s platform created a two-sided network effect by facilitating the protocols who are looking to raise capital (and giving them an additional method of fundraising apart from VCs and Angel investors) and retail investors who were unable to participate in these kinds of investment opportunities to gain potential returns on project IDOs in a decentralized manner.
As Solanium has previously incubated some of the largest protocols on Solana — e.g. Port Finance. It has built a reputation amongst projects and investors which then creates a positive reinforcing cycle with this network effect.
Apart from utilizing the speed of Solana blockchain for faster and cheaper transactions, Solanium also helps its users to make decisions through its straightforward UI design that includes all of the information that one needs to know on one page.
The Solanium Smart Contracts have not gone through any form of formal audit as of this date. However, the team mentioned in their Telegram that all of Solanium’s mainnet smart contracts will be audited in the future.
On the other hand, the Solanium team will KYC and audit all projects that get included on the platform.
The Solanium UI is straightforward and highly intuitive. At the moment, there is only one tab (Home page) on the official website that outlined all of the details that the user needs to know (two more tabs in development — “Trade” and “Invest”. Currently they are placeholders on the front page). Some screenshots and examples are shown below:
(Snapshot and staking)
(Projects)
(Future Roadmap)
However, the disadvantage of such UI design is that it is relatively harder for its users to navigate within the page as there are no other bookmarks.
On the other hand, within each project-specific page, Solanium will provide its users will the basic information about the project as well as the statistics and timeline of the IDO process which the investors can use without looking for them themselves on the internet.
Rules of the game that people have to follow
As the governance function is not yet live for Solanium, the power of decision-making is currently held entirely by the Solanium team. However, once the governance function is live, the team has outlined a two-stage development of the governance methods.
In the first phase, protocol governance will be a mix between a centralized solution and blockchain voting. Similar to snapshot for Ethereum projects, there will be a centralized app where users can cast votes with their wallets.
Moving into the second phase, Solanium is intended to become fully decentralized with on-chain voting mechanisms in the near future.
Once the governance function goes live, the community would then be able to provide governance on the use cases of the Solanium treasury (e.g. insurance fund)
As outlined above, there are three stages of governance within the Solanium ecosystem: centralized governance —> semi-centralized governance with snapshot-like voting mechanism —> fully decentralized governance with on-chain voting mechanism.
During the first two phases, the Solanium team would have the final say of the implementations of various ideas generated. However, once the protocol becomes fully decentralized with on-chain voting, executable codes will be embedded within each governance proposal and will be implemented automatically once the proposal goes through.
As of this moment, there is no resolution mechanism yet on Solanium. However, it was mentioned in the Telegram group that Solanium is open to setting up an insurance fund (a portion of Solanium Treasury) to prevent potential hacks or rug pulls if the community votes for it once the governance function is up. Yet, there are no current plans to implement the insurance fund before governance goes live.
The Solanium ecosystem mechanism design is heavily dependent on the use cases of its SLIM and xSLIM tokens. While SLIM is the native token of the ecosystem, its own use case is to be staked for users to gain xSLIM tokens. The amount of xSLIM tokens that a user has, on the other hand, would be the determinant of their ability to vote, govern, earn fees, and participate in IDOs.
Specifically, the amount of xSLIM token that one is able to get is a direct multiplication function of the amount of SLIM or SLIM LP Token and the multiplier is a simple linear function on the duration of the stake. The multiplier is 1X for SLIM stakers and 2.5X for SLIM LP token stakers, thus incentivizing users to provide liquidity for SLIM instead of simply holding them with the maximum multiplier will be achieved by staking for 365 days. There is also a minimum requirement of staking for 14 days and 100xSLIM (Tier 1). Once the user stakes, 100% of the xSLIM token will be distributed to the users on the first day with a linearly declining holdings on a daily basis until it reaches 0 by the end of the staking period. A graphical representation is below:
The primary business model of Solanium — project IDO launchpad, does not require the usage of any kind of oracles. However, Solanium uses an undisclosed oracle for price feed of its previously launched projects and calculates statistics such as current ROI and all time high ROI. It is, however, important to note that these figures have no connection to the core business and serve only as references for the project’s investors.
The entire Solanium team is anonymous and in charge of implementing policies so it is possible for them to defy the wishes of the community without any personal reputational repercussions. Such risk is especially prominent given that the protocol is still highly centralized in the sense that the entire governance decision-making process is fully controlled by the team.
Another risk that the platform faces is potential rug pulls. Especially as the team itself has not been formally audited/accredited, the Solanium team as the only entity to conduct KYC and audits to the projects coming onto the platform may not be enough to ensure that the project will not be a rug pull. Under such an event, the reputation of Solanium will be significantly damaged as its primary business model is as an IDO launchpad. (One of the project that IDOed on Solanium — Flippies NFT, was allegedly a rug pull, non-active team, people dummping the NFTs)
As the governance feature is not live on Solanium yet, there are no voting mechanisms in place as of yet. However, once the governance feature is up, the weight of the user’s votes will be based on the amount of xSLIM tokens the user has at the time of casting the vote
All new tokens are released at a pre-determined vesting schedule. However, there are no new tokens being allocated to the public as all liquidity , marketing (airdrop), staking, trading rewards are already unlocked at the time of this writing.
On the other hand, a portion of the profit (fees that Solanium collected from its IDOs) will still be flowing to its stakers. Specifically, 2% of each projects’ raised funds will be going to the xSLIM holders based on how much percentage of xSLIM the user is holding at the time of the fee distribution.
Another 2% of each projects’ raised funds will also be charged and flows into the governance treasury that the token holders can govern in the future.
Rules of the game that tokens have to follow
With a total maximum supply of SLIM tokens being 100M, all distribution channels follow a predetermined vesting schedule. As per the current schedule, the full supply of the SLIM tokens will be released in 16 months after the protocol’s launch with both the team and advisors having a 10% per month unlocking rate and a 6 months cliff. With the limited supply, this would thus create a inflationary monetary policy for the SLIM tokens.
The value of the SLIM token comes from the utilities of the xSLIM tokens which captures a percentage of the protocol revenue, allow users to earn a 2% fee from each IDO, participate/invest in IDOs, and enables the abilities to vote in the future.
SLIM
xSLIM
As of 15/12/2021, the SLIM token can be staked for an average return of 16% APY. This captures the fee that flows to the stakers based on their xSLIM holdings.
However, the majority of the Solanium users are likely going to see a financial return in terms of the IDO token price appreciation profit.
Useful for non ERC-20 tokens. And how financial products are structured.
SPL
The distribution of the SLIM token can be seen below:
Solanium is the largest IDO launchpad on the Solana blockchain and incubated some very successful projects on Solana. With the entire Solana ecosystem being still very young and the entire DeFi and P2E space still in the rapid growth period, it is likely that we will see further growth in the Solana ecosystem, and thus the demand for Solanium’s services in the near horizon.
However, there are also several risks with the platform. Firstly, the entire development team is completely anonymous. There has also not been a formal audit on the platform. Even with many of the large institutions/projects backing Solanium (e.g. MEXC and Serun) , there is still a considerable amount of risk with their platform’s activities, especially given that the team has full control over the protocol at the moment including governance and screening for potential projects.
Additionally, the number of the new SLIM token being distributed is relatively low. With only 10% of the total tokens allocated to it, the full amount allocated was exhausted within 4 months of protocol launch. While users still profit from capital appreciation from IDOs, the lack of further incentive in terms of new tokens may hinder the protocol’s ability to encourage staking, especially after the user participated in the IDO that they desired.
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