The increasing need for defi solutions has been met by project incubators that support the growth and launch of cryptocurrency startups. Current tiered model prices mean that every valid launchpad token eventually reaches a level at which new entrants cannot afford new project tier allocations. Incentives investors to search for alternative launchpads that have a lower price token and thus a greater chance to receive a good allocation to new projects. However, over time this can lead to a decrease in quality and an increase in risk when project offerings are made on launchpads.

Based on NewField Fund’s thesis, this problem is called the “launchpad dilemma”. The only solutions to the problem have been diluting token supplies, decreasing the requirements for tokens per tier or holding a lottery open to non-token holders. In all instances, however, accessibility remains a fundamental problem.

Seeded Network is currently developing a new method for project incubation. This team aims to provide a fair solution to all participants through the use of its built-in Defi solutions.

What is Seeded Network?

Seeded Network is an arrangement for borrowing and lending that uses traditional defi technology to create a product incubator. It offers more value than the typical launchpad model. This defi product aims to create a wide range of products for network usage to add utility to the $SEEDED token as well as incentivize use of the incubator.

Seeded Network’s flagship lending protocol is the first-of-its-kind on to allow liquidity provider (LP) collateral, enabling participants to use LP tokens as collateral and borrow other assets while also providing utility to other parts of the network.

What is the process?

Seeded Network’s defi solutions are powered by Solana’s unique Proof of History and Proof of Stake hybrid architecture, delivering a high-performance, 400,000 transactions per second, less than $0.01 gas fee, decentralized blockchain from which to scale for mainstream adoption.

Seeded Network is committed to fairness and avoids the launchpad dilemma. It uses a zero-tiered system, which makes it possible for anyone regardless of their tokens to be eligible. The Seeded Network uses a hybrid decentralization model, which combines more centralized incubator support and a completely decentralized product. This allows projects to establish their own fundraising process using smart contracts. Seeded also offers product usage incentives to encourage the use of the incubator.

Incubator Project

Investors can access hand-selected projects that have passed the incubation process under an updated allocation model that delivers a more sustainable weighted-average system with different risk tolerances from Seeded’s array of defi solutions.

Projects undergoing incubation are granted access to Seeded’s network of professional marketers, developers, advisors, graphic designers, and community moderators with hands-on support from the Seeded Team to raise funds from all over the world to successfully launch and grow their platforms.

Borrowing

Seeded Network lets participants use their assets and LP tokens to collateralize loans for native tokens. This includes its $SEEDED token. To gain an allocation, borrowed $SEEDED tokens can be staked up to 10 days prior to the incubation of an incubator project. These staked tokens may be removed during the window. However, a 30% penalty will apply. This penalty is shared equally among stakers and Seeded’s treasury.

Lending

Seeded’s lending solution enables users to lend out their favorite assets for competitive returns and access to the Seeded ecosystem. Locked Lending lets users lend their $SEEDED tokens for a double bonus allocation that can be used to fund an incubator project. You must keep your tokens locked for at least 90 days. After that time, other users will be able to borrow them and take part in the incubation process. But you can withdraw early without the 30% penalty.

Take-out

To receive an allocation, users can stake unborrowed $SEEDED tokens up to seven days before an incubator project launches. Because they’re not backed, staked tokens may be removed at any moment without penalty.

Future Development

Seeded Network’s team emphasizes continuous learning, awareness and solving problems for real fairness, in order to give priority to user experience.

Following recent partnerships with Chainlink and Waggle, Seeded’s smart contracts will be audited by the leading security platform CertiK in the run-up to launching its initial incubator, lending, borrowing, and staking products. In the future, it plans to add synthetics, stablecoins and farming into its ecosystem.

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