Whitepaper v1
Tokenizing $POIN rewards with open API for web2 online retail business
Poinswap Decentralized Exchange Whitepaper
Abstract
Poinswap, pioneering RetailFi
Challenges in current DEX and other Defi protocol
The Blockchain we used
v1 Features 5.1 DEX 5.2 Double Staking Protocol 5.3 NFT Subscription 5.4 Decentralized Pet Assistant
Upcoming Features 6.1 Token KYC 6.2 Token Category & Profile 6.3 Perpetual Trading 6.4 Retail Launchpad 6.5 Retail Liquidity as Service 6.6 Poinswap Metaverse Project
Impermanent Loss Free!
7.1 Index Pool 7.2 Future Pool
Oracles 8.1 External Oracles 8.2 Internal Oracles
Protocol Security
Governance
10.1 Community Fund
Tokenomics 11.1 $POIN
Usecase 12.1 Curated Token 12.2 Validator as a service
12.3 Retail Launchpad
12.4 Poinmall
Roadmap
Official Support Channel
Disclaimer
1. Abstract
Poinswap is the first Decentralized Exchange with interoperability web3 ecosystem designed for retailers, companies & institutions by bridging DeFi into real-world utilities by utilizing Supernet on Polygon.
The DeFi market size has over $112 billion market value in 2021, this amount has doubled from the data from 2020. Despite the growing concerns of recession in 2023, the DeFi market is expected to keep growing for its scalability and usability. DeFi is the best option for pioneering the RetailFi ecosystem. DeFi has changed the world. The stability of DeFi products is the best option for their scalability, sustainability, and cost efficiency in every economic condition
Poinswap is industry — specific exchange focused on pioneering Retail DeFi products to the market. The retail products are not limited to existing companies, but also to new ventures who are going to replace the failing GameFi projects. Say goodbye to #PlaytoEarn and say hello to #ShoptoEarn. Get your best deals in crypto, stake your NFT to get rewards, Buy your favorite brands through DeFi, and many more to come!
2. Poinswap, Pioneering RetailFi
Over the past decade, the Decentralized Finance (DeFi) space has continued to evolve to match the development of the digital asset market. Almost every protocol provides features that benefit the community, such as lending, yield generator, derivatives, insurances, DEXes, and many more. Poinswap is trying to bring the best of DeFi products for retailers to join the blockchain revolution.
Poinswap is a DeFi platofrm designed as an ecosystem builder for retailers, companies & institutions by bridging DeFi with real-world utilities through whitelisting supernets on Polygon and designing the open API for web2 retail business. Poinswap is here to answer the main problem of first-time retail or institution partners to start their projects in the blockchain. With this product, they can start building with minimum knowledge and experience in DEX and engage with the community seamlessly with our user-friendly UI / UX. Poinswap will become your friendly neighborhood DEX!
3. Challenges in current DEX and other DeFi protocol
DeFi has changed the way financial model and spending behavior from the consumer perspective. It has opened and broadened the opportunity for any company, individual, or even organization to monetize in a borderless and open society through Web 3.0.
Poinswap realized we need to merge WEB 2.0 business model with WEB 3.0 business model to be sustainable. Looking at some case studies from a recent crypto market crash where most of the platforms were only crypto-centric, the loss in the financial market only created a financial loss for the retail investors.
Below are the list of problems and solutions we are trying to solve
a. Crypto centric business model <> Merging both WEB2 & WEB3 business model b. Ponzi <> clear structure and agnostic approach for sustainable revenue model c. Learning curve <> intuitive UI UX d. Whales alert <> community base approach e. Designed for retailers, companies & institutions
4. The Blockchains we used
Poinswap uses Polygon as its main blockchain. The reason is simple, we believe for the ability of Polygon to build Supernet for retailers and its consensus model. Most of the retailers will have their own sub-blockchain where they can manage the transaction flow, business, and tokens through Poinswap DEX and Poinswap launchpad.
On the other hand, we will develop a multi-chain product. with Polygon as the initial chains, including AVAX, Polkadot, BNB, Arbitrum, Sui, and Aptos. Poinswap will try to match the current trend and demand for the newest generation blockchain to the protocol
5. v1 Features
5.1. DEX
Multichain
Multichain Decentralized Exchange with initial networks including: AVAX, Polkadot, BNB, Arbitrum, Sui, and Aptos. Poinswap will try to match the current trend and demand for newest generation blockchain to the protocol
Swap / Trading
Poinswap offers competitive trading rate. The biggest difference is that you can trade right away, anytime and anywhere from the token profile instead of going to the trade menu. This will make your trading experience easier than ever
Liquidity Pools
You can only swap tokens on Poinswap if there is enough liquidity for the tokens. If nobody has added much liquidity for the token or tokens you want to swap, it will be difficult, expensive, or impossible to do so.
Providing liquidity will get you LP Tokens, which will earn you rewards in the form of trading fees for making sure that there's always liquidity for the exchange to use.
Yield Farming
Yield farming lets users that are providing liquidity earn $POIN rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of impermanent loss that comes along with locking in your liquidity.
Poinswap will use FaaS technology so users can get the best yield in the market. Now users don't really need to manually moved their funds because Poinswap will do the homework with our dashboard monitoring system.
The dashboard monitoring system will works as a one click button to invest in various yield made by our partners in the DEX
5.2 Double Staking Protocol
A revolutionary double staking mechanism where you can stake both of your tokens and NFT from Poinswap NFT rent. By stake both assets, users are able to gain triple benefits:
Token rewards
Retail vouchers (e.g. Amazon gift cards, Youtube premium, and many more)
Pet lootbox
Double staking is a new feature developed to bridge DeFi with real-life retail utilities. Stake token to get tokens, stake NFT to get tokens, stake both to get all benefits
5.3. NFT Subscription
Poinswap will launch on-chain genesis NFT minted to the protocol as part of the double staking mechanism. All NFT minted in the Poinswap smart contract are for subscription purposes only. By renting the NFT, users will get various benefits from the NFT itself with additional benefits from Double Staking System
5.4. Decentralized Pet Assistant
Loyalty reward system and membership program as a digital pet! For the first transaction in Poinswap, you will unlock the pet feature. This pet will act as the guardian of your account in the DEX!
The more you swap, trade, farm or buy something in the platform, you will get random airdrop of pet cosmetics which you can use to redeem for greater rewards in the NFT marketplace
6. Upcoming Features
6.1. Token KYC
Partners will be able to register their tokens in Poinswap KYC document. By applying to Poinswap KYC program, partners token will be available in token category. This feature is an option and partners still able to launch their token without KYC just like any other DEX, however their token will not get listed in token category and appear in the search box
6.2. Token Category & Token Profile
Poinswap has a token category section where users can browse token based on their category instead of bulk search. Users will also be able to activate the swap feature right away from the Token Profile. As simple as that!
6.3. Perpetual Trading
Poinswap realizes the importance of perpetual trading feature, especially for experienced traders. We will connect API with ApolloX Finance or Binance DEX to provide this feature for premium users. Premium users will unlock perpetual trading by staking a certain amount of $POIN and will enjoy discounted rates based on how much they $POIN they lock.
About Apollo X
ApolloX Finance is a decentralized derivatives trading protocol. Through "off-chain matching + on-chain settlement" model, Apollox Finance achieves high transaction performance and fast response speeds while ensuring the safety and transparency of users’ funds. Furthermore, ApolloX Finance has excellent market depth since it shares liquidity with ApolloX CEX. Users can enjoy a smooth trading experience while connecting to ApolloX Finance with just one click through their decentralized wallets.
About Binance DEX
Binance DEX is a decentralized exchange created by Binance and powered by the company's Binance Coin (BNB). It offers lower fees and improved security over centralized exchanges. However, it also has a steeper learning curve, and is best suited to experienced crypto users
6.4. Retail Launchpad
Retail launchpad will work just like any other launchpad with focus on retail acquisition. Retailers are welcome to join and incubate before finally launching their product in Poinmall, a land owned by Poinswap in the metaverse.
6.5. Liquidity as Service for Retails
To help retailers growth, Poinswap will launch liquidity as service in Q2 2023. The purpose of this feature is to help retailers focus more on their product instead of managing the financial side of their token. More info will come in the near future!
6.6. Poinswap Metaverse Project
Poinswap is committed to become a one stop platform for newcomers and provide retailers a gateway to the metaverse. The concept of Poinswap Metaverse is simple, we buy land plot the in Metaverse and build a mall with space for rent for retailers. Thus, retailers are able to launch their product in the metaverse with affordable prices.
On the other hand, newcomers are able to enjoy metaverse the experience just like any other conventional marketplace. Users can enjoy browse and shop either in the Poinswap platform or the metaverse.
Poinswap will issue the new utility token the $PTS as currency for payment and merchant reward system. More info coming soon!
7. Impermanent Loss Free!
Index Pool & Future provides deep liquidity to the project in the Poinswap protocol. We put the liquidity in 2 big pools which support each other’s ecosystem & business framework. The smart contract and financial model are designed similarly to traditional index funds.
Poinswap will provide a total of 15% of the protocol revenue to be added to the pool.
10% of NET protocol revenue will go to the Index Pool 5% of NET protocol revenue will go to the Future Pool
The separation of the pools is agnostically designed to prevent the liquidity of the big-cap projects drained by small-cap projects. Thus, since the protocol is designed to be sustainable and profitable, it will reward the hodlers and investors of Poinswap tokens either in the short-term or long-term projection.
Index Pool
Works similar to traditional index funds, investors are able to put liquidity in a big pool that covers every blue chip token. This will help to reduce the impermanent loss risk while providing liquidity for projects.
7.2 Future Pool
Future Pool is designed for a low market cap or newer projects. Low-cap projects are not listed in the index pool, instead, there will be a new pool which is the Future Pool that works the same as Index Pool.
20% of generated income from the Index Pool will go to the Future Pool to support low market cap projects. Vice versa with 35% of the Future Pool will go to the Index Pool protocol since the risk of a low market cap project failing is greatly higher than big market cap projects
8. Oracles
Poinswap will using Chainlink as oracle. Chainlink is a decentralized oracle network that connects blockchains to real-world datasets, including events, data feeds, and non-blockchain payment methods. A decentralized oracle can convey information to the blockchain that isn't inherent to the blockchain. Chainlink will be used to bridge the gap between traditional data and any future developments in blockchain technology, allowing smart contracts to interface with real-world data and providing them with secure access to key data resources.
This will ensure that any blockchain has reliable, tamper-proof inputs and outputs. The Chainlink protocol also includes measures for ensuring data accuracy and reliability. There will be three layers to this. The first layer will have the Oracle or data aggregation from several Oracles. While the second tier will contain individual Oracle Pools with the option of collateral slashing for improved data dependability, and the third layer will include a pool of Oracle Pools.
8.1 Internal Oracles
Internal oracles are used when external oracles are not ready or not available. More info will be updated next
8.2 External Oracles
The information provided by external oracles is the primary source for maintaining the liquidation model.
9. Protocol Security
The security of the project is enhanced by protocol architecture, code quality, health monitors, active liquidation bots, and insurance. This will provide secure delivery of data between two parties.
The collateralization ratio ensures that the loan amount is always lower than a specific percentage of collateral, while the origination fee for borrowing prevents spam on the contract.
It incorporates aspects such as; key agreement or establishment, entity authentication, symmetric encryption, and message authentication material construction, secured application-level data transport, non-repudiation methods, secret sharing methods, secure multi-party computation.
10. Governance
Poinswap is looking to introduce a new governance system to build a scalable system truly controlled by active users and backers of the community, especially to fund retails project
The voting power will be calculated by both the native token balance and users’ on-chain / off-chain activity analysis.
The governance decides critical decisions and parameters for the lending pools, including:
Assets adding and removal
Collateralization ratio per asset by asset's risk ratio
Yield programs
Fee rates / Usage of the fees
Protocol upgrades
Project Funding
Project Removing
Community Fund
Community Fund
Imagine Polkastarter or Kickstarter but you don't have to use your money to fund the project Community Fund Is a feature developed by Poinswap team where we will allocate 0,02% from the transaction fee to Poinswap Community Vault. The fund in the vault can be used to fund community project and will be decided by DAO. List of the community projects can be either proposed in the DAO or launchpad or retail launchpad. User are able to generate passive income base on $POIN they stake.
11. Tokenomics
11.1 $POIN
$POIN is native token of Poinswap which users can use for governance and liquidity balancing for Poinswap utility token. Specifications :
Circulating Supply : 1.000.000.000
The token Structures:
TEAM: 15%
ECOSYSTEM: 45%
EXCHANGE & LIQUIDITY: 12%
PUBLIC SALE: 1%
PRIVATE ROUND: 4%
SEED ROUND: 2%
ADVISORS: 10%
MARKETING & AIRDROP: 11%
12. Use case
12.1. Curated Token
Poinswap will categorize tokens based on their industry in token dashboard to help traders easily find tokens they want. Users can navigate in token category section in the website and start browsing
New tokens that want to get listed in the curated token section can apply in the website, however users can still list their tokens easily just like any other DEX. The difference is tokens without KYC won't appear in the token category section.
12.2. Validator as a service
Users can stake a certain amount of tokens in the smart contract to become group of validators. Users are able to enjoy validators reward by voting which project they want to support as validator
12.3. Retail Launchpad
Merchandise "Company A" wants to sell their product in the metaverse but has limited knowledge and capital. They need help from consultants and the launchpad so they can issue their own token and launch their product in the metaverse. By applying to Poinswap Retail Launchpad, Merchandise "Company A" will get the necessary knowledge, guidance and community to promote their token
12.4. Poinmall
After successful launch, Merchandise "Company A" is ready to step their foot in the metaverse. Thus they decide to rent a space in Poinmall, a digital mall build by Poinswap in the metaverse. Retailers are able to rent, promote and sell their product with affordable price in Poinmall.
Users are able to enjoy one stop shopping experience with curated retail partners in the mall
13. Roadmap
Q4 2022
Launch $POIN and smart contract
VC Funding
Private Sale
Airdrop Campaign
Launch Alpha
Staking Event
Q1 2023
Public Sale
Launch Bet
Genesis NFT
Launch token category
Community Building
Q2 2023
Poinswap v1 Launch
Perpetual trading
Retail Launchpad
Retail Profile
Community Fund
14. Official Support Channel
Website: https://poinswap.com Telegram: https://t.me/PoinswapDEX Twitter: https://twitter.com/Poinswap Medium: https://medium.com/@poinswap Discord: https://a.poinswap.com/discord Reddit: https://www.reddit.com/r/Poinswap/
15. Disclaimer
This document is intended for use by the Poinswap DEX. The Poinswap team may adjust the actual business planning according to industry development requirements and related laws, administrative regulations, local regulations, and department regulations. This whitepaper does not establish a legal opinion regarding the purchase or sale of Poinswap tokens or their associated companies, corporate equity, claims, or owners' equity.
Every proposal or price will be applied under the applicable securities law and other relevant laws and regulations. Thus, advice or opinion for investment is not constituted from the information or analysis in this document. This whitepaper should not be interpreted as any civil offer, civil promise, civil action, or civil contract. Poinswap tokens are virtual tokens issued by the Poinswap DEX platform. Because of the volatility of the crypto market, users who purchase and hold Poinswap tokens may profit from the price increase of Poinswap tokens. However, they may also suffer losses due to falling prices. The price of Poinswap tokens will be determined through market transactions and the team may increase or adjust the token's service contents according the the business development needs. All business development needs will thoroughly discussed from DAO process
Poinswap team makes no promises or guarantees regarding the future price of the tokens. Poinswap users should be aware of the risks of the projects invested/promoted by the platform. Individual investors or institutional investors will partake in the token investment to understand and accept the risk of the project and are willing to bear all consequences and risks accordingly. Poinswap team does not guarantee the increase in value of the tokens. $POIN tokens should not be considered as having the nature of ownership, control, or decision-making power of the Platform or its affiliates and companies. Poinswap tokens are commercial and do not have the nature of securities. Non-traditional financial products should not be registered as securities in any country or region.
Poinswap states in the disclaimer that it will not bear any direct or indirect losses caused by Poinswap investment projects, including loss of economic benefits due to users' operations; loss of economic benefits due to user's own mistakes, negligence, or inaccurate information; loss of economic benefits caused by the user's transaction of blockchain products; loss of economic benefits due to any failure of the blockchain, mainly from Binance Chain, AVAX, Polygon and Polkadot
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