Exchequer token projects give downside protection to it's holders
Exchequer: preferred tokens
A token gives a project a network to iterate on in order to help it find product-market fit. Pendle(launched a token early on) told the Open House panel it spent three years before finding PMF.
Today, instead of helping, most tokens hurt the projects trying to find PMF: when token price falls, everyone abandons the project. This weekend we spoke to 35 founders here, and 11 of the 17 with a token, or planning one, face this problem.
Our solution: split the token. Traders keep the common token. Long-term holders get a preferred token: the same token, with protection, so they hold through the iteration years instead of leaving. The project stands behind its own token, instead of paying market makers, exchanges and incentives whose tokens get sold.
Liquidity Preferred, our first product: buyers pay cash for the protected token and keep all the upside. If the price falls up to 75%, they get back what they paid at the end of the term. Their cash and the project’s tokens become DEX liquidity: $2 for every $1 raised. The project’s cost is capped at the tokens it sets aside, and nothing is minted. The pricing comes from our four published papers: 1, 2, 3, 4.
Live on the Robinhood Chain and Arbitrum One testnets, with 11 projects in discussion. Next: an audit through the Arbitrum Security Program, then mainnet.
Try it: https://dev.exchequer.fi/
Deck: https://docs.google.com/presentation/d/1CFiJAYDjFcuxdAnRbdRBSr3mmMTPmiuCheOaAixTufk/