Nitro Launch pool

The Nitro Launchpad leverages Nitro’s concentrated liquidity DEX design to bootstrap liquidity and facilitate price discovery for new tokens. Fully integrated with the protocol’s AMM infrastructure, it enables a seamless transition from the launch phase to a standard tradable pool, streamlining the token distribution process.

Key Features

• Customizable Liquidity Distribution: Projects can strategically allocate liquidity within specific price ranges or bins to shape early valuation metrics.

• Dynamic Price Discovery: Prices adjust dynamically as participants demand the base asset (e.g., $NAD) while the launchpool accumulates the quote asset (e.g., $USDC).

• Zero Upfront Capital Requirement: Launchpools can be initialized with 100% base assets and 0% quote assets, significantly reducing capital barriers for projects.

• Direct Transition to DEX: After the launch phase, the pool automatically transitions into a standard trading pool, enabling swaps, borrowing, and liquidity provisioning without additional configuration.

• Access List: Projects can restrict participation to specific community members via customizable whitelists, ensuring controlled access during the launch phase.

Core Pool Configurations

Assets

• Base Asset: The token being launched (e.g., $NAD).

• Quote Asset: The asset accepted in exchange for the base asset (e.g., $USDC).

Pricing

• Starting Price $(P_{start})$: Initial price of the base asset.

• Final Price $(P_{final})$: Target maximum price for the base asset during the launch phase.

• Bin Step $(s)$: Configurable percentage difference between consecutive price bins.

  • Example: $P_{start} + s = P_2$ $P_2 + s = P_3$, and so on.

Liquidity Distribution

Liquidity distribution involves defining the range, amount, and structure of liquidity placement across price bins.

• Distribution Range: Defines the number of bins or percentage range between the starting price $(P_{start})$ and final price $(P_{final})$.

• Distribution Amount: The total amount of the base asset allocated across the bins within the distribution range.

• Distribution Structures: Determines how the distribution amount is allocated within the distribution range:

  • Ascending Structure: Liquidity progressively increases with price, allocating more liquidity to higher price bins.$(Δ≥1)$

  • Descending Structure: Liquidity progressively decreases with price, where each subsequent bin receives less liquidity than the previous one. $(Δ≤1)$

  • Uniform Distribution: Liquidity is evenly distributed across all bins within the selected range. $(\Delta = 0)$

The Asset, Pricing, and Liquidity Distribution configurations help shape the early market valuation and expectations.

• Starting Market Cap: The token’s initial valuation, calculated using the starting price and the total base asset distributed.

$\text{Starting Market Cap} = P_{\text{start}} \times \text{Distribution Amount}$

• Target Market Cap: The token’s maximum potential valuation if the price reaches the final price.

$\text{Target Market Cap} = P_{\text{final}} \times \text{Distribution Amount}$

Claim Weight

Claim weight governs how a participant's buying price $(P_{buy})$ and the end price $(P_{end})$ influence the final tokens to be claimed.

• Tokens are claimed at the end of the launchpool, not during the purchase.

• The claimable amount depends on the weights set by the pool creator.

• Claim Weight Configurations:

  • $W_{buy} = 0, W_{end}=1$: Allocation based entirely on the end price.

  • $W_{buy} = 1,W_{end} = 0$: Allocation based entirely on the buying price.

  • $W_{buy} = 0.3,W_{end} = 0.7$: A weighted combination of 30% buying price and 70% end price.

• Formula for Token Claiming The number of tokens a participant can claim is calculated as: $Amount_{out} = \left( \dfrac{Amount_{in} \times W_{buy}}{P_{buy}} \right) + \left( \dfrac{Amount_{in} \times W_{end}}{P_{end}} \right)$

• Key Variables:

  • $P_{start}$: Starting price.

  • $P_{final}$: Final price.

  • $P_{end}$​: End price at launchpool expiry $(P_{end} \leq P_{final})$.

  • $P_{buy}$​: User’s buying price $(P_{start} \leq P_{buy} \leq P_{final})$

  • $W_{buy}$​: Weight of the buying price.

  • $W_{end}$​: Weight of the end price.

  • $Amount_{in}$​: Quote asset invested by the user.

  • $Amount_{out}$: Final number of tokens allocated to the user.

Additional Configurations

• User Limits: Sets the maximum amount of base tokens each participant can purchase, ensuring equitable participation.

• Access List: Restricts participation to pre-approved addresses, enabling projects to target specific communities or supporters.

• Duration: Defines the timeframe for the launchpool. Once the duration ends, the pool transitions seamlessly into a standard DEX pool, allowing regular trading, borrowing, and liquidity provisioning.