Capx – liquid vesting & token lifecycle management 

Category: Blockchain Crypto Fintech
Posted by Katy

Our vision at Capx is to democratize the financial markets by building a more robust, stable and sustainable financial infrastructure through our DeFi products and tools

The future of Defi is promising to say the least. Not that long ago, it took a company about 4 years to IPO. Today, the median time to IPO is more than 12 years. A few years back DeFi projects used to do their ICO (initial coin offering) in the very first year. They were publicly listing their token and opening opportunities for the retail investors. But, we have been moving away from that mindset as more and more institutional investors are entering the space and dominating the private markets in crypto.

As more institutional capital enters the industry, entrepreneurs will choose to sell larger portions of their crypto assets to private investors and not list these assets for a longer period of time. Thereby putting founders under a great deal of stress to create that buy-pressure. Therefore, to give 100x returns to the private investors. At the same time taking the opportunity to get early into the project away from the retail investors.

Our vision at Capx is to democratize the financial markets by building a more robust, stable and sustainable financial infrastructure through our DeFi products and tools. Our products cater to each and every stakeholder in the space, addressing a specific problem with each product. 

Some of the many use-cases include:

  • Helping founders manage their tokens better through liquid vesting

Our dApp and hero-product – Capx Liquid is a liquid vesting platform and a token lifecycle management tool, enabling founders to vest their project token through our decentralized Liquid application thereby locking the investor and team allocation on-chain via smart contract. While locking these tokens the founder can configure these vesting tokens as – Wrapped Vesting Tokens (WVTs) and Sellable/Non-sellable.

These WVTs are essentially liquid derivatives of vesting tokens and can be leveraged to access liquidity. This gives the founder more control over its tokenomics and foresight for its token’s market prices and overall project growth.

  • OTC put on-chain through Capx Exchange

Capx Exchange is a peer-to-peer decentralized exchange with an order book mechanism that allows users to trade Wrapped Vesting Tokens. It’s a marketplace for private allocations and institutional dealflow.

A lot of investors today work with OTCs in terms of finding buyers for their SAFT (Simple Agreement for Future Tokens) agreements. These investors sometimes pay the OTCs upwards of 5–8% of the deal and also go through a cumbersome process of working with the project teams in terms of cancelling the old SAFT agreement and creating a new SAFT agreement for the buyer.

With WVTs, an investor doesn’t have to work with the project for creating any new documentation. He/she can simply list the WVTs for sale on the Capx exchange. The payments and escrow will be taken care of by the Capx Exchange smart contracts.

To put simply, the easiest way to understand Capx Exchange w.r.t the traditional systems in place would be “Capx Exchange is like an on-chain OTC with tokenized SAFTs”.

  • Founders getting access to liquidity without selling their treasury tokens

Capx Lend is a peer-to-peer lending/borrowing platform for the Wrapped Vesting Tokens (WVTs). With Capx Lend we aim to enable the WVT holders to be able to put their Wrapped Vesting Tokens (WVTs) as collateral and borrow from lenders on the platform. The terms of lending are individually agreed upon by the lender and the borrower for every engagement.

With Capx Lend in the picture, the Founders will no longer have to sell their Treasury tokens to access liquidity for their operations, product and marketing spends. Instead, all they will have to do will be to create WVTs of their treasury tokens through Capx Liquid. Then, put them as collateral on Capx Lend to take loan against the same and therefore have access to liquidity without having to sell their allocations, or treasury tokens losing control over the supply.

  • Sustainable growth for the project tokens through Capx Liquid & Exchange

One of the biggest worries for the Founders is not being able to successfully control their project token prices in the market, giving in to the volatility. This volatility in a lot of cases is a consequence of investor dumps. It increases the supply in a very short period of time causing the price of the token to fall rapidly.

With WVTs, the investors can sell their positions in the secondary market (Capx Exchange). So, the sell pressure doesn’t come to the exchanges (primary market). The new set of investors holding the WVTs now sit on a much lower upside compared to the original set of investors. Hence, they don’t bring the same kind of sell pressure on unlock dates. This helps the projects have a sustained token price growth in the secondary markets before even the vesting tokens’ unlock dates arrive.


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