2023 is proving to be a pivotal year for the Solana ecosystem. With a resurgence in Solana DeFi, we’re witnessing a surge of enthusiasm amongst Solana-native teams to launch new tokens within the ecosystem. While these tokens offer exciting opportunities for the community, their successful launch and ongoing maintenance demand a comprehensive suite of solutions that support their sustainability.
Welcome to Armada, an initiative designed to empower Solana-based projects with a “fleet” of advanced DeFi tools that cover the entire journey from token genesis to full decentralized autonomy.
Crafted by core contributors from venerable Solana DeFi projects PsyFi and Hxro Network, Armada’s suite of tools is a public good engineered to power the next generation of token ecosystems on Solana.
Armada Fleet V1 Overview
Mechanisms for Initial Token Distribution:
Armada auction protocols empower project DAOs to bootstrap and activate their communities through price discovery and token distribution in an open and equitable way.
Armada offers two mechanisms for SPL token launch and distribution:
– Liquidity Bootstrap Pools (LBP)
– Liquidity Bootstrap Curve (LBC)
Liquidity Bootstrap Pools (LBP)
In the Ethereum and broader EVM token ecosystem, LBPs have historically been the most popular, fair, and transparent way to distribute tokens and build community.
Until today, this mechanism was not available on Solana.
Armada LBPs have a flexible configuration and can be created based on the needs and token distribution goals of the project. For projects looking to launch their tokens through a liquidity pool approach, Armada’s flexible Concentrated Liquidity Market Making (CLMM) infrastructure creates customizable solutions for SPL token projects to quickly create vaults to facilitate token launches through an open and accessible liquidity bootstrapping mechanism.
Armada Auction Liquidity Bootstrap Curve (LBC)
Armada’s Auction protocol introduces an innovative liquidity bootstrapping mechanism meticulously crafted to foster sustainable, token-based communities. Leveraging a Dutch auction-style mechanism, Armada LBC ensures fair and equitable token launches, setting the stage for long-term success.
Example of a curve with a steep early decay
Example of a curve with a more linear decay
Armada Concentrated Liquidity Market Making (CLMM)
Armada CLMMs automate the process of liquidity provisioning, enabling instant trading within ecosystems. These CLMMs are built upon industry-leading practices, delivering flexibility, capital efficiency, and professional-grade market maker management.
From the LP perspective, ranges are managed based on each individual vault strategy removing the requirement of the LP to set their own ranges.
Vault strategies can range from standard market-making strategies, bull/bear strategies, price target strategies, accumulation strategies, etc. Each liquidity pool can host an infinite number of vaults. However, current vaults can house up to 5 individual position ranges at a time.
Currently, Armada CLMMs have been launched on the following pools, with plans to expand the offering in the near future as new ecosystem teams complete token launches:
Reward Tokens: Discount Token Standard
In the early stages of token ecosystems, incentives play a pivotal role. Armada’s Discount Token Standard facilitates reward programs by offering discount tokens that embed discounts to the current Oracle price.
This standard’s most common use will be “option” tokens. Options tokens are a way for the protocol to incentivize liquidity mining, but in a way that is mutually beneficial to both the liquidity provider and the protocol. This works because the protocol enables airdropped rewards to be purchased, within a given timeframe at a discounted rate to where it is trading in the open market (based on the current Oracle price). This creates a mutually synergic scenario whereby:
- The holder of the discounted option token now holds it at a discount to the prevailing market.
- The protocol earns the token that is being swapped (USDC, SOL, etc.) which goes into the treasury or can be designated through governance for other uses.
- Redeemers can either realize their gain by selling the token at the prevailing market price or choose to stake the token in the protocol’s staking contract to earn protocol revenue and vote escrow.
This innovative approach enhances liquidity mining and incentive programs, driving engagement within the community.
Autonomous, Governance-Based Reward Distribution: DeMUX
Armada DeMUX protocol streamlines the complexities of automated protocol reward distribution, combining governance-driven reward distribution with autonomous, smart contract-based management.
This not only enhances efficiency but also minimizes the potential for human error, safeguarding protocol funds and project credibility.
Tokenized Single-Sided Staking
Single-sided staking for governance is a foundational mechanism for ecosystem holders to participate in network governance by staking the native token of the network without the need to provide additional tokens as collateral.
Armada staking contract offers ve-style lock-up mechanisms whereby a holder can lock their native token for a defined period. Based on the term they choose to lock, they will receive a certain amount of voting tokens which allow them to participate in protocol governance. The Armada staking contract includes a VE multiplier that may be set by the protocol for users who opt to lock their tokens for longer.
Getting Started with Armada
The initial offerings from Armada are now available and can be accessed at app.armadafi.so
To stay updated on the latest developments follow Armada on Twitter, join the Armada community Discord, and bookmark Armada docs.