How TaalSwap IDO works

This page describes TaalSwap as an IDO platform.

The working of the TaalSwap platform can be depicted as a configurational diagram in the figure below. For the sake of exposition, we assume the TAL-Ethereum bridge for the interoperability of TaalSwap. (This actually is the first rendition of TaalSwap as an IDO Platform.) The TaalSwap platform soon will incorporate BSC, Klaytn and Heco to extend its multi-chain interoperability.

The liquidity offered to the TaalSwap exchange comes from liquidity providers (LPs) who stake their Ethereum-swapped TAL governance tokens in TaalSwap pools.

By staking TAL, the user is eligible for voting for and against a project. If a project is voted down, the TAL staked by a voter is immediately restored. If a project is approved by voting, the user, as a voter, is prioritized over project toke sale. The voters can also be rewarded the project tokens whose amount is set by the project at the time of IDO application.

The listed project is liable for a 2% platform fee of the token sales, and the users who participated in voting can be rewarded a portion of 2% of the raised funds after the token sale success according to his/her TAL staking ratio.

After voting, the user can invest in a listed project whose native token is matched with ETH (and TAL in the later versions of TaalSwap) in terms of TaalSwap’s swap protocol. To make TaalSwap a reliable IDO platform, we start with “Fixed Swap Auction” of ETH and project native tokens. "Batch Auction" (aka Batch Trading) soon will be incorporated to make TaalSwap a more flexible and receptive IDO platform. By pledging a fixed exchange rate, project investors are able to assess their investment cost and make smart decisions on the project they are interested in. On the project side (i.e., for auctioneers), the amount of raised funds and sold tokens is correctly calculated.

With TaalSwap, pool creators can feed the pool information comprising token contract address, title of the pool, limit per address, pool access type (public, private, whitelist) and token price. (See “Participating in a pool".)

A participant (i.e., auction-goer) can join a token sale and his/her bid(s) are automatically processed in no time, ensuring the immediate transfer of the swapped tokens.

The gist of the TaalSwap platform is to build a permissionless trading environment for authentic decentralization. Ultimately, any TAL token holders will be able to make use of the protocol on the TaalSwap platform to autonomously create and launch auction pools of their own.