|
1 | | -# Funding Pallet |
| 1 | +<!-- cargo-rdme start --> |
2 | 2 |
|
3 | | -Polimec's main business logic. It allows credentialed users to create, |
4 | | -evaluate, and fund projects. |
| 3 | +# Funding Pallet |
5 | 4 |
|
6 | | -It rewards project evaluators and contributors with `Contribution Tokens`. These |
7 | | -tokens can be redeemed for a project's native tokens, after their |
8 | | -para-{chain/thread} is deployed on mainnet. |
| 5 | +Polimec's main business logic. It allows users to create, evaluate, and fund projects. |
9 | 6 |
|
10 | | -> **Warning** 👷 Work in progress 🏗️ |
11 | | -> |
12 | | -> **Warning** Expect major changes between PRs |
| 7 | +Participants get contribution tokens. Contribution tokens are tokens issued by projects which successfully raised |
| 8 | +funds on Polimec. They are distributed to evaluators and participants who contributed to the project’s successful |
| 9 | +funding round. Contribution tokens are transferability-locked in the wallet of participants or evaluators after |
| 10 | +distribution and are automatically converted to the project’s transferable mainnet token at launch. |
13 | 11 |
|
14 | 12 | ## Overview |
15 | | - |
16 | | -The official logic for Polimec's blockchain can be found at our |
17 | | -[whitepaper](https://polimec.link/whitepaper). |
| 13 | +The official logic for Polimec's blockchain can be found in our [knowledge hub](https://hub.polimec.org/). |
18 | 14 |
|
19 | 15 | There are 3 types of users in Polimec: |
20 | | - |
21 | 16 | - **Issuers**: They create projects and are responsible for their success. |
22 | | -- **Evaluators**: They evaluate projects and are rewarded for their due diligence. |
23 | | -- **Contributors**: They contribute financially to projects and are rewarded on |
24 | | - the basis of their contribution |
25 | | - |
26 | | -A contributor, depending on their investor profile, can participate in different |
27 | | -rounds of a project's funding. |
28 | | - |
29 | | -There are 3 types of contributors: |
| 17 | +- **Evaluators**: They are incentivized to assess projects accurately by locking their PLMC. If at least 10% of its |
| 18 | + target funding (in USD) is locked in PLMC, a project is given access to the funding round. Evaluators are either |
| 19 | + rewarded in contribution tokens if the project gets funded, or have their PLMC slashed otherwise. |
| 20 | +- **Bidders**: They contribute financially to projects by locking PLMC and paying out USDT/USDC/DOT, and are rewarded in contribution tokens. |
30 | 21 |
|
| 22 | +Users need to go through a KYC/AML by a third party in order to use the protocol. This process classifies them |
| 23 | +into one of the following categories, based on their investment experience and financial status: |
31 | 24 | - **Institutional** |
32 | 25 | - **Professional** |
33 | 26 | - **Retail** |
34 | 27 |
|
35 | 28 | Basic flow of a project's lifecycle: |
36 | | - |
37 | | -| Step | Description | Resulting Project State | |
38 | | -| ------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------- | |
39 | | -| Creation | Issuer creates a project with the [`create()`](Pallet::create) extrinsic. | [`Application`](ProjectStatus::Application) | |
40 | | -| Evaluation Start | Issuer starts the evaluation round with the [`start_evaluation()`](Pallet::start_evaluation) extrinsic. | [`EvaluationRound`](ProjectStatus::EvaluationRound) | |
41 | | -| Evaluation Submissions | Evaluators assess the project information, and if they think it is good enough to get funding, they bond Polimec's native token PLMC with [`bond_evaluation()`](Pallet::bond_evaluation) | [`EvaluationRound`](ProjectStatus::EvaluationRound) | |
42 | | -| Evaluation End | Evaluation round ends automatically after the [`Config::EvaluationDuration`] has passed. This is achieved by the [`on_initialize()`](Pallet::on_initialize) function. | [`AuctionInitializePeriod`](ProjectStatus::AuctionInitializePeriod) | |
43 | | -| Auction Start | Issuer starts the auction round within the [`Config::AuctionInitializePeriodDuration`], by calling the extrinsic [`start_auction()`](Pallet::start_auction) | [`AuctionOpening`](ProjectStatus::AuctionOpening) | |
44 | | -| Bid Submissions | Institutional and Professional users can place bids with [`bid()`](Pallet::bid) by choosing their desired token price, amount, and multiplier (for vesting). Their bids are guaranteed to be considered | [`AuctionOpening`](ProjectStatus::AuctionOpening) | |
45 | | -| Closing Auction Transition | After the [`Config::AuctionOpeningDuration`] has passed, the auction goes into closing mode thanks to [`on_initialize()`](Pallet::on_initialize) | [`AuctionClosing`](ProjectStatus::AuctionClosing) | |
46 | | -| Bid Submissions | Institutional and Professional users can continue bidding, but this time their bids will only be considered, if they managed to fall before the random ending block calculated at the end of the auction. | [`AuctionClosing`](ProjectStatus::AuctionClosing) | |
47 | | -| Community Funding Start | After the [`Config::AuctionClosingDuration`] has passed, the auction automatically. A final token price for the next rounds is calculated based on the accepted bids. | [`CommunityRound`](ProjectStatus::CommunityRound) | |
48 | | -| Funding Submissions | Retail investors can call the [`contribute()`](Pallet::contribute) extrinsic to buy tokens at the set price. | [`CommunityRound`](ProjectStatus::CommunityRound) | | |
49 | | -| Funding End | If all tokens were sold, or after the [`Config::RemainderFundingDuration`] has passed, the project automatically ends, and it is calculated if it reached its desired funding or not. | [`FundingEnded`](ProjectStatus::FundingEnded) | |
50 | | -| Evaluator Rewards | If the funding was successful, evaluators can claim their contribution token rewards with the [`TBD`]() extrinsic. If it failed, evaluators can either call the [`failed_evaluation_unbond_for()`](Pallet::failed_evaluation_unbond_for) extrinsic, or wait for the [`on_idle()`](Pallet::on_initialize) function, to return their funds | [`FundingEnded`](ProjectStatus::FundingEnded) | |
51 | | -| Bidder Rewards | If the funding was successful, bidders will call [`vested_contribution_token_bid_mint_for()`](Pallet::vested_contribution_token_bid_mint_for) to mint the contribution tokens they are owed, and [`vested_plmc_bid_unbond_for()`](Pallet::vested_plmc_bid_unbond_for) to unbond their PLMC, based on their current vesting schedule. | [`FundingEnded`](ProjectStatus::FundingEnded) | |
52 | | -| Buyer Rewards | If the funding was successful, users who bought tokens on the Community or Remainder round, can call [`vested_contribution_token_purchase_mint_for()`](Pallet::vested_contribution_token_purchase_mint_for) to mint the contribution tokens they are owed, and [`vested_plmc_purchase_unbond_for()`](Pallet::vested_plmc_purchase_unbond_for) to unbond their PLMC, based on their current vesting schedule | [`FundingEnded`](ProjectStatus::FundingEnded) | |
53 | | - |
54 | | -## Interface |
55 | | - |
56 | | -All users who wish to participate need to have a valid credential, given to them |
57 | | -on the KILT parachain, by a KYC/AML provider. |
58 | | - |
59 | | -### Extrinsics |
60 | | - |
61 | | -- `create` : Creates a new project. |
62 | | -- `edit_metadata` : Submit a new Hash of the project metadata. |
63 | | -- `start_evaluation` : Start the Evaluation round of a project. |
64 | | -- `start_auction` : Start the auction round of a project. |
65 | | -- `bond_evaluation` : Bond PLMC on a project in the evaluation stage. A sort of |
66 | | - "bet" that you think the project will be funded |
67 | | -- `failed_evaluation_unbond_for` : Unbond the PLMC bonded on a project's |
68 | | - evaluation round for any user, if the project failed the evaluation. |
69 | | -- `bid` : Perform a bid during the auction round. |
70 | | -- `contribute` : Buy contribution tokens if a project during the Community or |
71 | | - Remainder round |
72 | | -- `vested_plmc_bid_unbond_for` : Unbond the PLMC bonded on a project's auction round for any user, based on their vesting schedule. |
73 | | -- `vested_plmc_purchase_unbond_for` : Unbond the PLMC bonded on a project's |
74 | | - Community or Remainder Round for any user, based on their vesting schedule. |
75 | | -- `vested_contribution_token_bid_mint_for` : Mint the contribution tokens for a |
76 | | - user who participated in the Opening or Closing Auction Round, based on their |
77 | | - vesting schedule. |
78 | | -- `vested_contribution_token_purchase_mint_for` : Mint the contribution tokens |
79 | | - for a user who participated in the Community or Remainder Round, based on |
80 | | - their vesting schedule. |
81 | | - |
82 | | -### Storage Items |
83 | | - |
84 | | -- `NextProjectId` : Increasing counter to get the next id to assign to a |
85 | | - project. |
86 | | -- `NextBidId`: Increasing counter to get the next id to assign to a bid. |
87 | | -- `Nonce`: Increasing counter to be used in random number generation. |
88 | | -- `Projects`: Map of the assigned id, to the main information of a project. |
89 | | -- `ProjectsInfo`: Map of a project id, to some additional information required |
90 | | - for ensuring correctness of the protocol. |
91 | | -- `AuctionsInfo`: Double map linking a project-user to the bids they made. |
92 | | -- `EvaluationBonds`: Double map linking a project-user to the PLMC they bonded |
93 | | - in the evaluation round. |
94 | | -- `BiddingBonds`: Double map linking a project-user to the PLMC they bonded in |
95 | | - the auction round. |
96 | | -- `ContributingBonds`: Double map linking a project-user to the PLMC they bonded |
97 | | - in the Community or Remainder round. |
98 | | -- `Contributions`: Double map linking a project-user to the contribution tokens |
99 | | - they bought in the Community or Remainder round. |
100 | | - |
101 | | -## Usage |
102 | | - |
103 | | -You can circumvent the extrinsics by calling the do_* functions that they call |
104 | | -directly. This is useful if you need to make use of this pallet's |
105 | | -functionalities in a pallet of your own, and you don't want to pay the |
106 | | -transaction fees twice. |
107 | | - |
108 | | -## Credentials |
109 | | - |
110 | | -The pallet will only allow users with certain credential types, to execute |
111 | | -certain extrinsics.: |
112 | | - |
113 | | -| Extrinsic | Issuer | Retail Investor | Professional Investor | Institutional Investor | |
114 | | -| --------------------------------------------- | ------ | --------------- | --------------------- | ---------------------- | |
115 | | -| `create` | X | | | | |
116 | | -| `edit_metadata` | X | | | | |
117 | | -| `start_evaluation` | X | | | | |
118 | | -| `start_auction` | X | | | | |
119 | | -| `bond_evaluation` | | X | X | X | |
120 | | -| `failed_evaluation_unbond_for` | | X | X | X | |
121 | | -| `bid` | | | X | X | |
122 | | -| `contribute` | | X | X* | X* | |
123 | | -| `vested_plmc_bid_unbond_for` | | | X | X | |
124 | | -| `vested_plmc_purchase_unbond_for` | | X | X | X | |
125 | | -| `vested_contribution_token_bid_mint_for` | | | X | X | |
126 | | -| `vested_contribution_token_purchase_mint_for` | | X | X | X | |
127 | | - |
128 | | -_* They can call contribute only if the project is on the remainder round._ |
| 29 | +1) **Project Creation**: Issuer creates a project with the [`create_project`](Pallet::create_project) extrinsic. |
| 30 | +2) **Evaluation Start**: Issuer starts the evaluation round with the [`start_evaluation`](Pallet::start_evaluation) extrinsic. |
| 31 | +3) **Evaluate**: Evaluators bond PLMC to evaluate a project with the [`evaluate`](Pallet::evaluate) extrinsic. |
| 32 | +4) **Evaluation End**: Anyone can end the evaluation round with the [`end_evaluation`](Pallet::end_evaluation) extrinsic after the defined end block. |
| 33 | +5) **Auction Start**: If the project receives at least 10% of its target funding (in USD) in PLMC bonded, the auction starts immediately after `end_evaluation` is called. |
| 34 | +6) **Bid**: Investors can place bids on the project using the [`bid`](Pallet::bid) extrinsic. The price starts at the issuer-defined minimum, and increases by increments of 10% in price and bucket size. |
| 35 | +7) **Funding End**: Anyone can end the project with the [`end_project`](Pallet::end_project) extrinsic after the defined end block. |
| 36 | + The project will now be considered Failed if it reached <=33% of its target funding in USD, and Successful otherwise. |
| 37 | +8) **Settlement Start**: Anyone can start the settlement process with the [`start_settlement`](Pallet::start_settlement) extrinsic after the defined end block. |
| 38 | +9) **Settle Evaluation**: Anyone can now settle an evaluation with the [`settle_evaluation`](Pallet::settle_evaluation) extrinsic. |
| 39 | + This will unlock the PLMC bonded, and either apply a slash to the PLMC, or reward CTs to the evaluator. |
| 40 | +10) **Settle Bid**: Anyone can now settle a bid with the [`settle_bid`](Pallet::settle_bid) extrinsic. |
| 41 | + This will set a vesting schedule on the PLMC bonded, and pay out the funding assets to the issuer. It will also issue refunds in case the bid failed, |
| 42 | + or the price paid was higher than the weighted average price. |
| 43 | +11) **Settlement End**: Anyone can now mark the project settlement as finished by calling the [`mark_project_as_settled`](Pallet::mark_project_as_settled) extrinsic. |
| 44 | +12) **Migration Start**: Once the issuer has tokens to distribute on mainnet, he can start the migration process with the [`start_offchain`](Pallet::start_offchain_migration) extrinsic. |
| 45 | +13) **Confirm Migration**: The issuer has to mark each participant's CTs as migrated with the [`confirm_offchain_migration`](Pallet::confirm_offchain_migration) extrinsic. |
| 46 | +14) **Migration End**: Once all participants have migrated their CTs, anyone can mark the migration as finished with the [`mark_project_ct_migration_as_finished`](Pallet::mark_project_ct_migration_as_finished) extrinsic. |
| 47 | + |
| 48 | +<!-- cargo-rdme end --> |
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