Earlier this year, PsyFi teamed up with Hxro on a project to accelerate the growth of the next generation of DeFi projects in the Solana ecosystem. The result is Armada, a fleet of user-friendly tools that make it easy to launch and manage high-quality tokens on the blockchain from inception through to full decentralization.
Fleet 1 of Armada is available on Solana mainnet now with the following tools:
- The Armada Liquidity Bootstrap Pool Program: Liquidity bootstrap pools (LBPs) are considered the most equitable and transparent way to distribute tokens and build community and are popular on major chains such as Ethereum. But they were not previously available on Solana. Now, Armada offers LBPs that are customizable to fit a project’s needs and token distribution goals.
- Liquidity Bootstrap Curve: This mechanism draws upon a Dutch or descending-price auction and is considered the fairest way to distribute tokens. Teams determine the starting parameters and the price declines over time until buyers are found. Proceeds go into pools that add to the token’s overall liquidity.
- Armada Concentrated Liquidity Market Making Vaults (CLMMs): Based on industry-leading practices, these vaults automate liquidity provisioning and are designed to offer flexibility, exceptional capital efficiency, and professional-grade market maker management. CLMMs sit on top of Uniswap V3-style pools, which allow liquidity to be targeted at specific price ranges to maximize liquidity. Token holders can delegate management of their assets to institutional market makers to maximize value.
- The Discount Token Standard: With this unique incentivization mechanism, projects can offer mining and other incentive programs through which users receive a perpetual discount to the token based on a current oracle price. The discount token gives the user the right, but not the obligation, to exchange the project token at a fixed discount to the current price.
- DeMUX: Armada’s DeMUX protocol combines governance-driven reward distribution with smart contract-based management, reducing the risk of human error or manipulation while facilitating a dynamic incentive structure and safeguarding project funds and credibility.
You can dig into the full details of Fleet 1 here.
We believe creators should be able to focus on building the best products, without having to reinvent the wheel to build tokenization infrastructure with each project. With Armada, now they have the tools they need to distribute new tokens, bootstrap liquidity, and effectively manage protocol revenue.
Crucially, these tools are available for anyone in the Solana ecosystem to use. The suite is designed to be a public good for the purpose of jumpstarting the growth of DeFi 2.0 on Solana.
We decided to take this approach because we saw that despite a building boom and a growing appetite for high-quality tokens, there was little tooling available to support tokenization on Solana – and what there was was fragmented and incomplete. We knew that high-quality assets and healthy token ecosystems could benefit every project on the network. So we decided to do something about it.
And the Armada team is already working hard on the next phase of the journey. Details of Fleet 2 will be announced at Breakpoint this week in Amsterdam. Be sure to catch our talk, “Governance and DAO Building Blocks,” on Friday November 3 for the full update.
For now we can say this much: soon builders will have the tools they need to establish robust governance and manage protocol revenue in a way that benefits ecosystems as a whole. Don’t miss our talk at Breakpoint for the full announcement.
Armada’s current suite of services is available at app.armadafi.so.