Launchpad

Runes Launchpad

Runes Launchpad is DotSwap's attempt at boosting the liquidity of Runes assets. With an innovative "Mint + Liquidity" launch method, Runes Launchpad makes it possible for Runes to have an open mint and have an in instant liquidity pool created immediately after the completion of minting.

Overview

Runes Launchpad simplifies the transition from asset creation to market integration by facilitating minting directly into liquidity provision. This seamless transition not only expedites the process but also enhances the value and usability of the newly minted Runes.

Advantages

Open mint

The open mint system automates the distribution of tokens, thereby ensuring fairness and eliminating any bias.

Instant liquidity

The BTC collected from mint participants is used to immediately create an initial liquidity pool. This enables instant trading between the newly minted Runes and BTC on DotSwap, supporting fluid market interactions immediately after launch.

Minters become LPs (liquidity providers)

Participants not only receive Runes tokens but also acquire a stake in the liquidity pool. This dual benefit rewards minters with both the asset and a share in the transaction fees generated by the pool.

How it works

Mechanics of Open Mints

Premined Runes: Essential to the functionality of the Launchpad, premined Runes ensure that there are enough tokens available for distribution as soon as the minting process concludes. This preparation helps maintain the integrity and efficiency of the launch.

This process is completed with the help of the zero-fee etching services provided by DotSwap.

BTC Payment and Distribution Process

Participants pay BTC to Runes Launchpad, which will then be stored in a safe multisig address (safeguarded by an upgraded multisig scheme). These funds are directly channeled into creating liquidity, facilitating immediate market readiness upon mint completion.

Creation of Liquidity Pools

BTC: The BTC collected from minters form the liquidity on the BTC side of the BTC-Runes trading pair.

Runes: A portion of the premined Runes is reserved for the liquidity on the Runes side of the BTC-Runes trading pair.

Distribution of Runes

Minter Distribution: Runes are distributed to minters in proportion to their BTC contributions, affirming the equitable and proportional allocation of the new assets.

Liquidity Pool Rewards: Liquidity providers benefit from their involvement in the pool through transaction fees collected on trades involving the new Runes, incentivizing long-term participation and support.

Reserved Runes for Launchpad Teams: A reserve of Runes can allocated for the teams that utilize the Launchpad, providing them with flexible resources for future endeavors, be it further development or promotional activities.

Minting Speed

To ensure a fair and decentralized minting process, all transactions during the launch are constructed using PSBTs in accordance with the Runes protocol. This necessitates that all Runes are distributed as planned via standard Runes transfers, incorporating a substantial amount of data into the OP_RETURN section of a Bitcoin transaction. Consequently, the number of mints permitted per block after the launch is as follows:

As a result, there is a certain amount of mints allowed in each block after the launch:

  • 1st block: 8 mints allowed

  • 2nd block: 8 × 7 = 56 mints allowed

  • 3rd block: 8 × 7 × 7 = 392 mints allowed

  • N-th block+: 8 × 7 ^ (N - 1) mints allowed

This configuration creates an interesting dynamics for a fair mint launch, as the participants watch the minting speed gradually ramps up with each new block being mined.

This is a temporary measure for the "Mint + Liquidity" method, due to the current constraints of the Runes protocol. We are actively developing new strategies to enhance the minting experience.

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