Launchpads and Launchpools on BNB Chain
Launchpads and launchpools help connect investors and dApps on a single platform. Investors seek out opportunities in potentially profitable investments based on their risk appetite. dApps and decentralized projects look to raise capital and attract a strong community of investors that believe in the technology.
What are Launchpads?
Launchpads are platforms used by dApps to raise funds similar to incubators for startups. Launchpads help launch dApps to investors allowing investors to invest in upcoming projects. Web3 users can buy tokens in a project at a discounted price as early investors. In other words, launchpads help the crypto ecosystem through decentralized crowdfunding.
On the other hand, dApps can use launchpads to raise funds from a larger number of investors even if the dApp is at an early stage. Projects also launch on multiple launchpads to get access to different investment communities. In most cases, different launchpads have different screening processes (KYC, AML, etc.) for listing dApps.
Types of Launchpads
Some of the different types of launchpads include IFOs, IDOs, ICOs, IGOs, artwork launchpads and more.
- Centralized launchpads such as Binance Launchpad and decentralized launchpads such as OpenSea.
- Launchpad aggregators.
- IDO or Initial DEX Offering launchpads such as TrustPad.
- IGO or Initial Game Offering launchpads such as Ancient8.
- ICO or Initial Coin Offerings launchpads such as Coinmarketcap.
- NFT and artwork launchpads such as LiveArt.
Examples of Launchpads on BNB Chain
What are Launchpools?
Launchpools are platforms that enable users to earn new tokens or tokens in a new project through staking. Launchpools encapsulate everything related to yield farming in DeFi. dApps use launchpools to raise funds while users use launchpools to gain access to rewarding APYs.
Web3 users have the opportunity to farm tokens in upcoming and innovative projects before the actual launch of the token to the general public. dApps gain exposure to a wider crypto audience through launchpools and build awareness in the crypto community. However, users are also at risk of losing their staked tokens should the launchpool prove to be a rug pull or get hacked.
Features of Launchpools
Some of the features of Launchpools include:
- Access to centralized launchpools and decentralized launchpools.
- The most popular type of launchpool is IFOs or Initial Farm Offerings on PancakeSwap.
- Users earn crypto while staking.
- Staking periods vary with most staking periods falling in the short term.
- The more users that participate in a Launchpool, the lower the APY and vice-versa.
- Launchpools act as incubators for early-stage dApps.
Examples of Launchpools on BNB Chain
Launchpads vs Launchpools
Launchpads and launchpools share several similarities and are both used as platforms to invest, earn, and crowdfunding. However, the key differences between launchpads and launchpools are:
- Users must pay to acquire tokens in launchpads (invest) while users must stake to earn tokens (staking) using launchpools.
- Users can trade launchpad tokens as soon as they acquire them, but may not be able to trade launchpool tokens until after a certain time.
- Launchpads distribute tokens using a lottery system where users may or may not get allocated a token. Launchpools distribute a guaranteed staking percentage based on the staking APY.
- Launchpads have a limit on the number of tokens investors can buy to prevent a few investors from holding a large share. Launchpools may or may not have such limits.
- There are risks associated with investing in launchpads and launchpools such as the project failing, a flaw in the smart contract, etc.
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