The Vellos Platform Proposition
Vellos is innovating in this space by broadening access to the discount token market, offering an equitable platform where sellers can connect with a global pool of buyers. Our platform allows participants to engage with new and existing Web3 projects, as well as other sellers, at favorable prices, underpinned by secure, on-chain trading validations and USDT collateralization. Vellos ensures liquidity through a secondary market, enabling investors to trade their stakes prior to maturity, and supports investments through familiar wallets like MetaMask.
Investments on Vellos will take the form of NFTs. These NFTs represent a bundle of discounted tokens, per the deal being offered, and are transacted in USDT. Project tokens are incrementally unlocked after a lock period and over the vesting period (as selected by the seller). No two investments are alike; each will have its distinct terms, disclosed transparently on our platform.
Vellos presents the following features to address the previously discussed challenges and market gap:
Discount Token Market: The Vellos secondary market offering platform, designed to aggregate the post-TGE token market and bring together all relevant stakeholders to one platform. Investors will be able to purchase NFTs, representative of the tokens being offered. Post TGE projects will be able to offer tokens at a discount, reflective of the long-term investment vehicle they are contained in. As the tokens represented by the NFT vest, the user holding the NFT will be able to claim them. Simple, easy to understand project metrics will be presented in order to make an investment decision.
Resale Market: the re-sale platform, designed to provide liquidity. Investors will be able to sell their NFTs (the rights of future token distributions) to others to exit their investment before maturity. If the seller is the protocol itself (selling treasury tokens), a portion of the proceeds will be returned to the protocol as a way to provide liquidity to projects early in their lifespan.
How It Works
Below is a sample transaction to help illustrate how the Vellos platform works. We provide 2 scenarios; one in which the user holds the NFT to maturity, and one where the user decides to resell his NFT on the resale platform:
Sample Transaction
The Project X fundraise NFTs go live on the Vellos marketplace. The fundraise terms are as follows:
Total fundraise: $100,000
Token open market price: $125/token
Discount offer: 20%
Discounted Vellos price: $100/token
Total # of tokens to be sold: 1000 tokens
Cliff: 6 months
Vesting: 10 months, vested on a monthly basis
Minimum investment size: $1000
Issued NFTs: 100 (each NFT represents 10 tokens)
In this case, Project X aims to raise $100,000 by offering a 20% discount on the $X token market value of $125. Therefore, the project sells 1000 tokens and Vellos users pay $100/token. Project X has elected a minimum investment size of $1000, which means that a total of 100 NFTs will be offered. Based on the size of the project's fundraise, Vellos will automatically recommend a minimum investment size based on the size of the community as a guideline for Project X. After DAO voters approve the fundraise, Project X deposits 1000 $X tokens into the Vellos smart contract, which subsequently mints 100 NFTS.
The percentage of the discount will fluctuate as the market price does.
Vellos user Bob purchases an NFT. The fundraise is not based on a pool and will remain open as long as there are NFTs available to mint. Project X has the option to close the fundraise at any time and burn any NFTs that were not purchased.
Scenario 1: Hold To Maturity
After the 6 month cliff has expired, Bob's tokens begin to vest. As the vesting period is a total of 10 months, Bob is due to receive 1 token per month. Bob has the option of either having the tokens automatically deposited into his wallet every month, or manually claiming them at his convenience. This continues for 10 months, until all 10 $X tokens have been received. After vesting concludes, the NFT is automatically burned.
Scenario 2: Resell the NFT
Bob sees that the market value of the $X token has increased from $125 to $200, and decides he wants to sell his NFT. He lists it for sale on the resale marketplace. Bob can choose to sell his NFT regardless of whether or not it has begun to vest yet. Any future tokens to vest will be deposited into the new owner's wallet instead of Bob's. If any vested tokens remain unclaimed in the NFT, the right to claim them is also transferred to the buyer. The number of unvested and vested tokens remaining in the NFT is clearly listed on the resale marketplace. After the sale is complete, a portion of the sale proceeds will be given back to Project X.
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