Dear DeFiat community,
Today, we are excited to announce the release of our new product, 2ND Chance! 2ND Chance is not only a new feature for the DeFiat ecosystem; it is a service we genuinely hope will help the greater Uniswap community. 2ND Chance will go live on Friday, October 30th, 2020 on or about 3pm EST/12pm PST.
Many of you have experienced the emotionalhigh of participating in an exciting new Uniswap listing, only to share the anger and sadness that followed when the project you invested in “rugs” (ie: team exit-scams). While Uniswap has provided the DeFi space with an exciting new platform to launch projects, unfortunately, it has not yet implemented features that prevent scammers from withdrawing liquidity and running off with your ETH, leaving you with useless, worthless ERC20 tokens! After reading about the countless scams launched each and every day, we decided to take action. Enter 2nd Chance.
What if you could reuse these tokens you have been left with? What if you could exchange them for something truly decentralized, un-ruggable by design, while powered by DeFi concepts such as “fee-on-transaction” and “LP farming”? .
We built something that could give you a fresh start in DeFi with these tokens and move on from your previous investment: 2ND chance — an ERC20 token. You obtain “2ND” tokens by swapping your rugged tokens (amount received is proportional to the overall supply of the token that scammed) and you can stake them in our farms and get rewards for your participation, like DeFi should be.
State of the Art Tokenomics:
Fee on Transfer token -> We introduce a novel concept: a dynamic fee based on volume. The fee is pegged between 0.8% and 3.6% at launch. This fee adapts dynamically based on the trading volume of the pair (every 20 transactions, the fee increases if the volume drops, and declines if the volume increases).
Farm Rewards -> The fees are sent to the farm contract where users can stake 2ND Uniswap LP tokens to share the reward. It’s a well known and efficient concept in the DeFi space.
Un-ruggable by design -> Every Swap incurs a 0.05 ETH fee (dynamic) that is immediately sent to the Uniswap liquidity for 2nd/ETH, increasing the value of 2ND over time. Additionally, when users unstake Univ2 LP tokens, 25% is kept by the protocol and locked.
20,000 2ND will be pre-mined as initial supply (with minimal inflation) and sent to an initial liquidity event using DeFiat’s team ETH to create a trading pair on Uniswap.
Once the token is live, we will whitelist a dozen of previous rugs, allowing their holders to exchange them for 2ND.
Each swap can generate up to 3,000 2ND per rugged token. (assuming 100% of the token is swapped and 100% of holders own 200 DFT), and incurs a 0.1% burn directly on the Uniswap pair, making sure that inflation is limited over time.
Let’s use a hypothetical $RUG token.
Amount Given per Swap = function(Your balance of RUG / totalSupply of RUG).
If you own 1% of the supply, you will get 10 2ND tokens.
Note that you cannot swap more than 2% of the supply of a token at a time, to avoid whales minting too many without the ETH fee.
If Uniswap reserves are 12,000 (amount in the contract), then 0.1% = 12tokens will be burned.
Resulting in a net- deflation of 2 tokens (10 minted at swap minus 12 burned).
We also added a DFT-Boost mechanism. Depending on your DFT holdings, this amount will multiply up to x3 more (if you hold 200 DFT = +200% bonus.
The naughty list at launch… Ho Ho Ho ;-)
We believe 2ND is a true game changer in the crypto-space. For the 1st time, DeFi farming goes beyond rewarding liquidity and gives users a utility use case: The recycling of rugs and scams. Of course, anybody can participate in liquidity farming, just buy 2ND on Uniswap. But if you have been rugged, we have a solution for you. Of course, if some of you may make a substantial gain with 2ND, others may not fully recover 100% of their initial loss, but anything is better than zero right? All in all, we hope that the 2ND Chance protocol will help you restart your DeFi journey on a better foot.
Try 2ND Chance Here: https://defiat.net/dashboard/secondchance.
Originally published at https://defiat.medium.com on November 2, 2020.