Lattice Development Update: May 2021
Disclosure: The information we provide is for users to conduct their own research. It is not investment advice. Users should be sensible in their participation and be aware of financial risks.
We know that the whole community is excited about our upcoming releases for Lattice Exchange, and thus would like to give everyone a clear roadmap of what you can expect over the coming months, all starting with a brilliant redesign.
Lattice Governance was released April 28th and we’ve already had our first decentralized decision on the amount of Lattice it takes to create a proposal! Thank you all for participating. We aim to set our intentions on guiding the conversations on the forum and proposals. Stay tuned for more details on how Governance will shape the Lattice Exchange.
On May 10th, we will launch the Lattice Project Intake Portal, opening up submissions for projects which want to join the Lattice LaunchPad. We will start reviewing early submissions and shortly after we will open reviewed projects up to the Lattice Governance, allowing the LTX community to vote for projects they want to see on our Launchpad. Our aim is to make this a competition where people can show support to the projects they want to back on our Launchpad. Constellation has already seen a lot of success with their project intake with over 45 submissions in the last week, creating a unique pipeline for projects to be listed on the Lattice Launchpad
On May 26th, you can expect to see the KYC Portal, which will also unlock Lattice Lending.
KYC will be an optional feature for projects that require KYC before accepting funds from LaunchPad. Every jurisdiction is different with regulation around the participation of pools. While we want to ensure we adhere to the fundamentals of decentralization, we also want to make sure that we can work with the requirements of every project that is featured.
Lattice Lending will also be released on May 26th, allowing people to collateralize BTC and ETH for a USD loan at lower interest rates to other industry leaders. This will invite new liquidity into the Lattice Ecosystem.
End of July, we will release Lattice LaunchPad, with the first project being listed. Please note that participants may be subjected to KYC depending on each project.
Projects and potential backers will be required to stake LTX to mine an allocation in the Pool (more details to come).
As mentioned above, Lattice Launchpad is coming at the end of July. It will feature:
- Deeper transparency in the allocation process
- Democratic distribution to encourage organic growth
- Fairness → Built for for the retail crypto audience to access private token sales
Our vision with Lattice LaunchPad is to provide our community with opportunities to back unique companies that are building cross-chain applications. We envision retail users participating in early rounds of the project funding phase which is traditionally reserved for large crypto holders.
Every LTX holder can participate and get a part of the project allocation no matter your size of bag!
With this we can make sure that the project tokens are widely distributed, not dominated by a handful of big entities, and thus provide a platform for promising projects to get backing in a fair and transparent way to achieve organic and healthy growth.
Reserving your allocation in Lattice LaunchPad will consist of three easy steps:
1. KYC: Depending on the project they participate in, users will need to KYC to adhere to a particular jurisdictions regulatory body.
2. Stake LTX into Lattice LaunchPad pools: For a predetermined time, people wishing to back projects on the LaunchPad will be required to stake LTX to receive an allocation. There will be multiple pools, with different maximum amounts of LTX required, for users to select in order to secure an allocation.
3. Success! Once users successfully receive their allocation, they will transfer funds to the project and will receive the staked LTX back.
The key dates for Lattice LaunchPad are:
Open Submission for projects looking to list on LaunchPad
End of July
Launch date with the first project
- KYC will be required depending on the project
- $LTX will be required to reserve your allocation
- Upon securing the allocation you will receive your $LTX back and will be required to transfer funds to the project’s address
The bread and butter of every DeFi ecosystem is being able to use crypto and/or stablecoin assets to earn yield. Lattice Lending allows you to borrow fiat against your crypto assets, releasing liquidity while securely keeping all upside growth.
Holders of crypto assets have seen the value of their positions increase significantly in the past few years. Many are looking for solutions and providers that allow them to release liquidity but maintain their exposure to the continued growth they expect to see in the future.
Lattice Lending provides a solution backed by a long-standing global financial institution that allows holders to borrow fiat on a non-purpose and non-recourse basis. Loan size can be $250k to $100MN+ and allows the user to benefit from the long term value in the crypto asset while using the funding for other purposes (such as property or other business ventures).
There are also two other major advantages:
- Depending on jurisdiction it could be a tax advantage because you are not selling your crypto assets but collateralizing it for a loan.
- If the collateral — your BTC or ETH — appreciates in value you could theoretically pay zero interest or even profit (appreciation > interest).
In the near future, we will enable loan sizes to be in smaller amounts and the collateralization against other crypto assets. This is currently in development and is coming soon. Additionally, participants will be able to reduce lending fees by using LTX tokens.
Securing a loan from Lattice Lending is a simple a straightforward process:
1. Go through KYC and get approved
2. Transfer crypto to lender
3. Receive up your approved USD or equivalent loan
The most essential piece to any decentralized platform is decentralized governance or a decentralized autonomous organization (DAO). In Lattice, every LTX holder can participate in the building of our platform by participating in the DAO. This allows token holders to incorporate their ideas and visions in the project, creating more value and more utility for the DAO.
Our first implementation of governance is as follows:
- A Forum to discuss different ideas and proposals before submitting them for vote.
- A governance experience that is a simple user experience while having zero fees
- The establishment of different rules for governance depending the feature or proposal
To begin, we have enabled a forum where LTX token holders can discuss and advertise their proposals before they submit for voting.
Second, we decided to use snapshot.org to provide the interface for submitting proposals and voting. Snapshot.org is well tested, used by the majority of major DeFi protocols/applications, and most importantly, it also provides a way to have zero costs proposals and votings.
LTX token holders will just need to hold their tokens in their wallet to vote and the governance tool will make snapshots of the Ethereum blockchain to calculate the voting results. Voting power will depend on the amount of LTX tokens the address holds over the duration of the vote.
Finally, certain proposals may have much more of an impact on the platform than others. As a result, some proposals will require a certain amount of token holders to see a successful proposal to be approved. E.g. changing the colors on the website vs changing the LP fees on Lattice Exchange.
Overview of the proposal structure:
→ Staking, LP rewards and other yield farming options
→ Governance structure and rules
→ Allocation process, project intake and similar
→ Platform fees, treasury usage, marketing, bounties
→ Lending process, fees, collateral and similar
→ Everything else
Over the next couple of months, we will expand on the governance of Lattice to help decide projects that go through Lattice Launchpad. Our aim is to build the future state of Lattice Exchange through the community.
Thank you all and stay tuned for more details and updates!