DRAFT - Proposal - SPROUT

Abstract/Executive Summary:
LINKSWAP and other decentralized exchanges currently offer a platform to enact token trades
and swaps. To further distinguish and develop the YFL brand as a leader in the Defi space, new
value-adding features need development and integration. One of these critical value-adding
features of LINKSWAP is RugLock, which locks liquidity for a specified period and then provides
the token with a score equivalent for its locked period. The next evolution of LINKSWAP is
creating a holistic process by integrating a token presale platform named Sprout that utilizes
advanced investor protecting features such as our very own Ruglock and LINKCHECK. Through
Sprout, a new project can generate liquidity and a new user base by leveraging the YFL
ecosystem. Furthermore, this will help LINKSWAP capitalize on the process from inception,
trading farming, and soon lending.
On a technical level, the platform would function similarly to LID or the old distx presale platform,
where projects can request a public token sale on Sprout. Once approved by the community
and LINKCHECK, it can be purchased by users. Sprout adds value to the YFL ecosystem and
governance stakers by collecting a fee from sales in the form of eth and redistributing a portion
of the fees to the YFL governance and treasury. Furthermore, many of these listings will become
exclusive listings, driving further
volume into the ecosystems for traders wishing to speculate upon them.

Motivation:
A significant driver of volume within uniswap is from newly listed tokens. In particular,
tokens that have hosted a public sale on platforms such as LID / Trust swap or sold through a
public address have the potential to generate volumes exceeding 1 million in the first 24 hours.
As such, launching a presale platform will help drive volume through these new tokens. After a
presale is complete, an agreed percentage of the raised funds will be locked-in liquidity through
utilizing RugLock on LINKSWAP, in effect causing the token to be an exclusive launch token.
Furthermore, a percentage of the raised funds and new tokens are distributed to stakers of the
YFL ecosystems. Depending on governance decisions, Eth fees can be split throughout other
YFL ecosystem divisions. i.e., Treasury, YFL stakers, and Linkpad operations.
Beyond gaining the volume and associated fees from new token listings, Sprout will further
differentiate Linkswap from other dex’s. Currently, none of our competitors offer an integrated
solution to enact presale assurances with RugLock and team/project verification through
LinkCheck. Also, no presale platform currently accepts or allows a presale to be completed
through Link. We are the de facto chainlink utilization ecosystem, and this feature further
solidifies this fact.
We believe that this feature will become an integral part of linkswap in the future for any new
tokens that wish to utilize a presale platform. Linkswap has the opportunity to be the preferred
provider due to the current “Linkswap Effect” that occurs when tokens list on this platform.
Further seamless integration will also be achieved by utilizing the new promising feature
called AUTO POOL; this feature allows teams/projects to create farming pools directly within the
YFL ecosystem, thus reducing overheads and required dev time.

Specifications:
The Sprout project shall operate on an external website linked to the LINKSWAP
application and yflink’s main website. In essence, Sprout shall be a separate DAPP with its
webpage but interconnected with LINKSWAP features such as rug lock, auto pool, etc.
The frontend of Sprout shall contain a list of all ongoing and upcoming presales,
community-generated project ratings, project roadmaps, and other metadata to inform potential
investors. There shall be a presale request area for new project onboarding in addition to the list
of available presales. As this is a community-driven platform, the onboarding process shall
include a social scoring process where new projects are vetted and rated by YFL Governance
participants. The scoring process shall resemble the current proposal voting system, where
proposals are submitted off-chain for community review and voted on after three days.
All new projects will select to sell tokens in either LINK, ETH or USDT. With Wyre crypto
on-ramp integrated into the LINKSWAP ecosystem, the process of procuring ETH and LINK is
now even more straightforward. To additionally reward stakers of YFL, anyone who holds yYFL
will obtain early access to all sales.
For version 1 of Sprout, the presale shall not allow custom tokens or importing externally
generated tokens. This limitation means that all presale tokens shall be created within the
Sprout application using a built-in token generator and automated contracts generator,
increasing security as no malicious code can be included. V2 will be proposed to allow custom
code only upon a successful LINKCHECK application for safety purposes.
When hosting a presale, the project must provide the following information, which will be
publicly
available:
● Project name and objective
● Token name and use case
● The total amount available for presale
● Amount sent to AUTO POOL (For staking) Including when farming start time, rewards
per block, and farming duration
● Amount of Tokens held by the project team, including a breakdown of tokens delegated
to project development, i.e., development, audits, marketing, etc
● Plans for unsold tokens
● Status of mint function pre and post token sales
● Token cap (This will create the price in USD / pair)
● Presale purchasing currency, i.e., Token/Link, Token/ETH, Token/Stable coin
● Liquidity information
● Project target launch date
● Presale duration
For gas/cost purposes, the majority of this information will not be stored on-chain and instead be
entered manually to the webpage as storing large volumes of text has a correspondingly high
gas cost.
With Sprout, projects can utilize the LINKCHECK verification process and fees for this
the process is proposed to be included in the presale fees hence reducing the upfront cost of
utilizing LINKCHECK.

Proposed user experience for Sprout:
Sprout must have an intuitive and easy to use user interface. The vision of the YFL
ecosystem is to be the de facto Defi platform. We believe a simple, intuitive, and beautiful user
experience that conforms to the global YFL theme would add intangible value to the website. All
Front-end design choices will be in line with other parts of the platform to ensure
continuity throughout the use.
Sprout user interaction is as follows:

  1. A user connects a metamask wallet to the Sprout platform.
  2. The user permits metamask and Sprout to interact with smart contracts on the platform.
  3. Sprout verifies the user has staked YFL in governance for early sale access,
  4. While on Sprout’s front page, users can “window” shop all existing and upcoming
    presales on the platform.
  5. When a user selects a presale of interest, essential sales information and metrics will
    become available such as the amount sold.
  6. Upon selecting a presale token, a simple buy button is available, allowing users to
    determine the number of tokens they would like to purchase.
  7. That’s it! The user is now an investor in a brand new presales token!
    It is important to note that tokens are not immediately distributed upon purchase.
    Instead, token distribution commences upon successful presale. A presale is successful when
    the hard cap or soft cap is reached within the sale window. Furthermore, all tokens shall be
    claimed from the website instead of airdropped out to minimize gas costs, as these costs
    would come out of the reward fees.

Actions after presales:
Upon successful completion of presales and distribution of tokens to investors, the
following sequence of events occurs automatically:

  1. The agreed percentage of the token is locked using Ruglock.
  2. The token is listed on LINKSWAP its pair, allowing users to provide liquidity immediately.
  3. Tokens are claimable by users.
  4. Any tokens for farming are sent to the AUTO POOL contract with the required logic input.

Fee distribution:
We propose a reasonable 2% fee on all raised funds and the standard LINKSWAP
listing fee. The fee will be used to buy back YFL and distributed as follows:
● 40% to YFL Governance
● 20% to YFL treasury
● 20% LINKPAD treasury
● 20% to the development team to continue maintenance and development of Version 2
(similar to how LINKPAD pays its team)
In addition to this, 1% of the total presale token supply shall be distributed to YFL Governance
Stakers.

Development funding:
To fund the initial development cost, the development team (Theoretical Trader and 6PathSage)
request 20 YFL from the YFL treasury to support the time, efforts, and resources required to
create and launch SPROUT. The 20 YFL shall be split equally between both developers.

Voting Option:

For:
Greenlight SPROUT development and allocate 20 YFL from treasury to SPROUT team

Against:
No Changes

4 Likes

You got my full support on this!

2 Likes

Thank you! We are so excited!

1 Like

Fantastic! Will be voting for this.

I am in support of this. As discussed in the Discord channel for this project, it would be good to have a more specific outline (if needed in this case) that shows how an approved project’s tokens are distributed to among yYFL stakers. The following are my thoughts summarized.

  1. Calculation of the 1% to be distributed IMO should be per YFL or yYFL staked not by numbers of wallet addresses.
  2. To mitigate mass influxes of staked YFL to gain access periodically to potential ‘airdrops’ there should be a time threshold for staked tokens to be elligible. IE, YFL that has been in the staking contract for 2 months prior to a distribution are eligible and those staked afterwards are either a) not counted at all or b) Prorated based on time until 1 week (or less) before the ‘airdrop’

I would think that these items and calculations would be able to be somehow coded into the smart contracts.

Cheers and great writeup. Can’t wait for more.

Great community driven proposal! I will be enthusiastically voting YES on this.