What are the Benefits of Fixed Swap Pools?
Amount raised + quantity of tokens sold is known
By ensuring a fixed exchange rate, investors as well know exactly how much they are paying for and how much they are getting. That allows smart investors to accurately calculate their cost basis in order to make better informed investment decisions in the future. This is completely different to the IDO model where the amount of tokens sold varies greatly alongside price volatility.
Wide distribution of token holders
Having a large number of token holders, distributed geographically and demographically, is a key advantage to have as a token project. Many centralised exchanges will look at the amount and location of token holders as key indicators of whether or not to list a project. Fixed token swap pools can help to ensure that more investors are able to get in on an investment opportunity.
Fair price
At Seedling, we firmly believe that funds raised belong to the project. Alternatively, interested token holders should be given every opportunity to acquire tokens they desire at a reasonable price without having to “ape” into them.
That’s why at Seedling we first began creating fixed swap pools tailored for the Cherry Network blockchain. Fixed swap pools provide a more fair token distribution mechanism while still remaining decentralized. Putting them on a next-generation interoperable blockchain like Cherry means that the transaction fees for performing decentralized swaps is much more efficient for the user.
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