The Poolz platform has two major user categories—Project Owners (PO) and Liquidity Providers (LP)—and distinct flows for each. For a high-level understanding of how it works, consider the following situations.
Before proceeding, note the following general information, that apply to both POs and LPs on the platform.
Supported Blockchains: Ethereum (MVP phase). In the future, Poolz will have multi-chain support and cross-chain integrations.
Supported Tokens: ERC20 (MVP phase). In the future, Poolz will integrate ERC721, along with multi-chain token standards.
Supported Wallets: MetaMask (MVP phase). In the future, Poolz will integrate WalletConnect, Coinbase Wallet, Fortmatic, and Portis, as well as other non-ERC20 wallets.
Suppose, Marie is a project owner wanting to generate liquidity for her token before its DEX listing. In Poolz’s initial (MVP) phase, she can create pools for ERC20 tokens, but in the future, other token standards will also be usable.
Step 1: Marie selects the blockchain protocol relevant to her project and connects a wallet from the available options. Then, she clicks on ‘Create a Pool’ to initiate the process.
Step 2: She enters the basic token details, such as address (contract) and total supply allocated for this auction.
Step 3: Marie specifies the parameters of the auction, including inbound payment method (MVP Phase: ETH/DAI. Later, Poolz will support other swapping pairs). She will also specify the swapping ratio and the percentage discount for Poolz (POZ) token holders (for more details, read our litepaper).
Step 4: As the project owner, Marie also specifies the total duration of the pool. Poolz has two types of pools—Direct Sale Pool (DSP) and Time-Locked Pool (TLP).
In DSP, the auctioned tokens go to the liquidity provider’s wallet immediately after a successful swap. In TLP, Marie can specify the time-period after which the investor will receive the tokens. For example, 40% at the time of swapping and the remaining 60% in 6-equal monthly vesting.
Note: Both for DSP and TLP, Marie needs to specify the initial duration of the pool when it is exclusive reserved for POZ token holders, at the discounted price (see Step 3).
Step 5: After filling up the details, Marie clicks on the ‘Start’ button to register the pool on her chosen blockchain. At this point, the token allocation that she has specified is transferred from her connected wallet to a HTLC smart contract, where they are escrowed for the pool’s duration.
Apart from her auctioned token, the gas (transaction) fee for registering the pool on the blockchain will also be deducted from Marie’s wallet. However, due to Poolz’s innovative architecture, this fee is reduced by almost 85%, as compared to the standard market rates.
Now, imagine that Adam is an early-stage liquidity provider, who wants to invest in a promising project like Marie’s. Considering that they don't know each other, Poolz can connect them in the following ways.
Step 1: Adam selects a blockchain ecosystem of his choice (in Marie’s case, Ethereum) and connects his compatible wallet (lists mentioned above).
Step 2: On the browsing page, he will be able to see all listed pools, with information like opening time, closing time, remaining time, token name, payment method, swapping ratio, and present status.
After connecting his wallet, Adam can click ‘Join’ to participate in an ongoing pool of his choice, for example, Marie’s pool.
If he is a POZ token holder, he can also join pools with the ‘Created’ status, when they are exclusively available to POZ holders. If not, then he can only join pools with the ‘Open’ status.
Step 3: After joining, Adam will enter the amount of base token, as per Marie’s chosen ‘payment method’. In the MVP phase, Poolz will support ERC20 tokens—ETH and DAI—as base tokens for liquidity. In the future, cross-chain integrations on the platform will enable more swapping pairs.
Instead of the base token, Adam can also input the amount of the auctioning token that he wants to buy. After his input, the Poolz’s algorithm will automatically calculate the corresponding values based on the pool’s data. He will also receive a disclaimer informing the risks associated with investments, which he can accept or deny.
Step 4: After accepting the disclaimer, a transfer will be initiated for the entered amount of ETH/DAI, plus a fee that goes to the Poolz wallet. Adam will have to confirm this transaction from his connected wallet.
Step 5: Depending on the pool’s type and duration, the swapped tokens will immediately go to Adam’s wallet, or after the specified time-period.