As the decentralized finance space continues to grow, new blockchains that offer higher scalability, lower gas fees, and efficient operations like Solana are introduced. The Solana network supports a number of innovative decentralized applications like Solanium.
Solanium is a decentralized finance ecosystem that offers fundraising facilities for crypto startups, a decentralized exchange, as well as a lucrative pool. This platform is known for supporting vetted and innovative crypto startups, while creating a haven for crypto investors to buy into the former.
What is Solanium’s native token?
Solanium has multiple tokens that are designed for different purposes, and they are SLIM, SLIM-LP, and xSLIM tokens.
SLIM Tokens
These tokens are available on exchanges and can be traded outside the Solanium exchange. SLIM tokens can be staked to earn APY, and once this process occurs, the holders are given xSLIM tokens.
SLIM-LP tokens
The second type of token is the SLIM-LP token, which is given to liquidity providers in the ecosystem. Once a community member offers liquidity to a Solanium pool, they are given the SLIM-LP tokens. These tokens can be staked to get the xSLIM tokens.
As of the time of writing this, SLIM-LP tokens are given to liquidity providers in Solanium’s Raydium Pool. To become a liquidity provider, the user must provide the stipulated number of SOL and SLIM tokens to the designated pool.
With the SLIM-LP tokens, not only can the liquidity provider stake them to earn xSLIM tokens, they are eligible to benefit from a 2.5x xSLIM bonus multiplier. This means that they are rewarded with at least twice the amount of xSLIM tokens a regular staker earns.
xSLIM tokens.
Unlike in other platforms, once SLIM tokens are staked, the staker is rewarded with another token called xSLIM for the duration of the staking period. The xSLIM tokens have rewards attached to them. Holders of this token are eligible to be rewarded with a share of the transaction and pool fees.
xSLIM tokens give the holder the rights to participate in the Solanium launchpad, depending on the size of tokens they possess. The number of xSLIM tokens a user has affects the tier that they belong to in Solanium. Those with a large supply of these tokens belong to tiers 4 and 5, which means that they can access guaranteed allocation.
Users are not allowed to exchange, trade or sell these tokens, but can use them to vote and participate in IDO activities on the launchpad.
As time elapses, the number of the xSLIM tokens that a staker has reduces. To increase the size, the user can extend their staking period and the number of SLIM and SLIM-LP tokens that they are staking.
Another important use of xSLIM tokens is governance activities. The voting strength of a user is dependent on the number of xSLIM tokens that they possess.
What does Solanium offer?
1. Launchpad
A key feature of Solanium is its fundraising element that is visible in its launchpad. The crypto space has numerous startups trying to gain popularity and acceptance for their services. Daily, new startups are being introduced with the aim of introducing their innovations to the blockchain market. A large percent of these companies are dead on arrival because they are unable to access important resources like finance, and marketing.
To solve the aforementioned, Solanium has a launchpad that offers blockchain startups the opportunity to raise funds and improve their visibility. This ecosystem allows them to raise funds from the crypto community, and gives them brand visibility on different social media platforms. Usually, after an IDO session on a launchpad ends, the money raised is used in developing the startup and reaching the milestones stated in the roadmap.
On the other hand, a group of investors, venture capitalists, and similar investment organizations that are seeking potentially profitable blockchain startups to invest in existing. The blockchain space is not a stranger to news of founding teams defrauding their investors of their money through rug pulls, exposing the loopholes to attackers, and so on. Investors are usually wary when making investment decisions because of this. Solanium acts as a bridge between investors seeking innovative projects and startups with potentially profitable products. Only vetted projects are inducted into this launchpad. As a decentralized platform, it allows both parties to interact with each other, while offering some measures to reduce the risk of exploitation.
How can one participate in the launchpad?
A major reason for the creation of the Solanium launchpad is to bridge both blockchain startups and investors.
- Own a governance token
To participate in the launchpad, the user is expected to have the governance token of Solanium, xSLIM tokens. The xSLIM token is one of the tokens available on Solanium, with multiple use cases, and one of them is determining if a potential investor is available to get an allocation during an IDO on Solanium launchpad.
- Belong to a tier
Every staker on Solanium belongs to the tier system. Five tiers exist and only members of tiers 4 and 5 have guaranteed allocation, meaning that if they want to participate in an IDO on the launchpad, they are given an allocation. As for the first three tiers, they have to undergo a random selection process to see if they are eligible to participate in a particular IDO or not since they do not have guaranteed allocation.
According to Solanium, the minimum requirements to become a member of a tier are:
“Tier 1
Requirement: 100 xSLIM
Tier 2
Requirement: 1000 xSLIM
Tier 3
Requirement: 5000 xSLIM.
Tier 4
Requirement: 10,000 xSLIM
Guaranteed allocation
Tier 5
Requirement: 50,000 xSLIM
Guaranteed allocation.”
- Register your wallet
Anyone that belongs to a tier is expected to register their wallet and link it to the Solanium launchpad before they can participate in any IDO. To register the wallet, a Know Your Customer process must be done on the launchpad. The KYC process involves submitting one’s personal details.
- Watch out for an IDO announcement
When the wallet has been registered and linked, the user can participate in any IDO, as long as they belong to a tier. A potential IDO session is normally announced on Solanium’s website and social media channels. Before the process begins, a guideline is displayed for potential investors to follow if they want a share of the allocation. Usually, the process begins with the Preparation stage, Whitelist phase, Lottery period, Sale event and ends with the Distribution.
2. Solanium Pools
Another important functionality on Solanium is its pools. The decentralized nature of the pool system allows every user of a Solana wallet to not only deploy liquidity pools but also distribute SPL tokens. Users are allowed to tweak the pools to their needs.
Every fee charged in a Pool is shared into different parts, and a percentage is given to the Governance Treasury, while the rest is earmarked to xSLIM token holders.
xSLIM holders benefit from several perks, which include being eligible to receive allocations based on the number of SLIM or SLIM-LP tokens that they have staked.
According to Solanium,
“Example: Pool X raises 10000 USDC, selling 1000 DEMO tokens. 2% of 10000 USDC will be distributed to xSLIM holders and 2% of 1000 DEMO will be put in the Governance Treasury.”
3. Solanium Decentralized Exchange
Solanium decentralized exchange draws its liquidity from notable Solana-based DEX, Serum. With the Solanium pools, traders can engage in permissionless Serum decentralized exchange.
Though Solanium DEX may depend on Serum, it will be a standalone exchange. At the moment, the exchange has not been open for public usage, though the feature is present on the decentralized app’s dashboard.
How to buy SLIM tokens
SLIM tokens have been listed on some decentralized and centralized exchanges. Typically, an exchange will expect users to link their wallet before they can buy the token either through fiat currency or by swapping it for an existing cryptocurrency.
After that, select the token and the amount that will be swapped in the exchange. The process is similar to what is obtainable during a typical crypto buying session. SLIM tokens are the only type of Solanium-based tokens that can be bought in exchange. xSLIM is accessible only during staking, while SLIM-LP can be accessed while offering liquidity to a pool.
In Conclusion
- Solanium is based on the Solana blockchain.
- There are three major tokens on Solanium such as SLIM, xSLIM, and SLIM-LP tokens.
- It is a launchpad used by crypto startups.
- The launchpad bridges the gap between investors and tech startups.
- To get involved in the launchpad, the user must belong to a tier.
- The decentralized finance platform also offers exchange and liquidity pools.
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