$XCAL Discounted Community Round
Greetings Insurgents! In this article we will begin by laying out all terms and details related to the upcoming $XCAL Discounted Community Round.
Greetings Insurgents! In this article we will begin by laying out all terms and details related to the upcoming $XCAL Discounted Community Round and we will also describe the protocol, why we are building it and some of the key features prior to the release of the official documentation within the next 24 hours.
Strap yourselves in!
What is the Discounted Community Round?
Our ethos is being impact driven and building our product suite without giving up autonomy and tokens in exchange for mercenary capital. As such, we are having an exclusive Discounted Community Round for our very early community members. XCAL tokens will be linearly vested to round participants, as per industry standards for a capital raise.
When will it begin?
The Discounted Community Round will commence on 28 August 2022 at 15:00 UTC and end on 31 August 2022 15:00 UTC or when the total reserved allocation is filled.
On what chain will it take place?
People will be able to participate in the round on both Ethereum Mainnet and Arbitrum One.
NB: The 3xcalibur Protocol will be deployed on Arbitrum. This means $XCAL tokens will be issued on Arbitrum and DCR claims will be facilitated on Arbitrum.
What is the token supply/allocation reserved for the DCR?
9,000,000 XCAL (9% of the total supply) have been reserved for the Discounted Community Round.
What are the valuation metrics?
Round Allocation: 9,000,000 XCAL (9% of total supply)
Price per $XCAL token: $0.50
Round Circulating Valuation: $4,500,000 (i.e total raise amount)
Round Fully Diluted Valuation: $50,000,000
Are there any minimum/maximum contribution amounts?
There is no minimum limit to how much a participant can contribute however there is a maximum limit.
Participants can choose to contribute up to $36,900 on each chain (Ethereum Mainnet & Arbitrum One), meaning that a participant can contribute up to $73,800 if they contribute on both chains.
Who can participate?
Any individual can participate in the Discounted Community Round, with exception of:
- Multisigs and contract addresses
- Citizens/residents of OFAC sanctioned countries
- OFAC Sanctioned adresses
- US residents/citizens
There is no early access and there is no whitelist.
What currencies can you contribute with?
Participants can choose to contribute to the $XCAL Discounted Community Round using up to 5 cryptocurrencies. These cryptocurrencies are: $ETH, $FRAX, $DAI, $USDT and $USDC.
When will the contributors receive their XCAL tokens?
Contributors will not be given XCAL tokens right away. Instead, they will mint an SBT (soul-bound token) which represents an agreement for the promise of future tokens, which is legally bound to the 3six9 Innovatio founder. Think of it like a community on-chain SAFT (simple agreement for future tokens).
After the conclusion of the DCR, we will have a maximum time of 90 days to have the public round/TGE (token generation event) as well as alpha launch of the 3xcalibur Protocol.
In order to shorten this time, we will be launching the 3xcaliSwap platform first instead of 3xcaliSwap AND 3xcaliCredit at the same time. This effectively means that TGE and launch will take place a LOT earlier than 90 after the Discounted Community Round.
SBTs will be minted on Arbitrum
Why is there a 90 day buffer?
This buffer is in place in order to have sufficient time for code (backend and frontend) audits to take place, a C4 (Code4rena) audit contest and a thorough testnet phase.
What happens if TGE does not happen within 90 days?
In the case that we are not able to deliver on this promise, contributors will have the right to demand their investments back (in USD value) as long as they can prove that they are the true owner of the the address that contributed.
This will not be difficult to prove as the SBT contributors will receive is a non-transferable ERC721 - it cannot be transferred or sold (unless someone was to buy the private key to the address itself).
We are working with a counter-party (who we will disclose ASAP) to custody Xen's personal details so that in the event of the above, contributors can visit Xen's house with flaming torches and pitchforks.
Is the SBT significant?
Yes indeed it is, the SBT contributors to the $XCAL Discounted Community Round receive acts as not only a representation of their claim on $XCAL tokens but it also tags contributors as early backers of The 3xcalibur Ecosystem and will be entitled to future airdrops and access to products within the ecosystem.
What is the "discount"?
Contributors to the $XCAL Discounted Community Round will be able to purchase tokens at a 50% discount to the price of $XCAL at launch.
The price of $XCAL at launch will be $1 per token.
Will there be vesting?
Yes there will be. Why? Because of the 50% discount to contributors in the DCR - we want to make sure that participants in the public round are not de-incentivized by the fear of DCR contributors dumping $XCAL on them at an easy 2x.
How long will vesting be?
$XCAL vesting for Discounted Community Round contributors will be 90 days in total. The vesting will begin at TGE/Launch (i.e as soon as the public round concludes) and contributors will be able to claim a portion of their $XCAL tokens every block.
Why are we having this round?
The development of the 3xcalibur Protocol and also that of 3six9 Innovatio began in January as a self-bootstrapped project by our Founder https://twitter.com/xen.
As we are a big team and very talented team, development costs do tend to pile up and in order to ensure all team members are deservedly compensated and we have sufficient runway to support our building - we need to raise capital.
Do we deserve the funding?
That is up to you to decide, but below is some context on what we are working on.
Initially the first iteration of the protocol was supposed to be launched a lot sooner, however, market conditions as well as the desire to build a stronger foundation for both 3six9 Innovatio (the company) and 3xcalibur (the protocol) inspired us to take some more time refining our process and vision.
The 3six9 Core Team is quite a large team compared to other early-stage crypto startups and the reason for that is simple: we at 3six9 Innovatio have greater ambitions than just the 3xcalibur Protocol, so although we have been working on 3xcalibur, we have also been working on other ventures such as:
- 3six9 Innovatio Enterprise: One of our core visions is to become a force in the enterprise blockchain technology development and consultancy sphere.
- UnR3kt: An insurance protocol catered to users seeking stablecoin insurance (i.e a market to sell volatility on stablecoin depeg risk)
- ILinsure: An insurance protocol catered to users seeking impermanent loss insurance (i.e a market to sell volatility on impermanent loss)
- 3six9 Cognitio: The 3six9 Innovatio research and education wing which is currently researching on a variety of topics such as undercollateralized loans, zkKYC, optimized stablecoin designs and MUCH more.
3six9 Cognitio is also working on a classified project dubbed "TGLOF" which is an educational hub for everything "crypto". Think of it as the "Urban Dictionary of Crypto" or "The Crypto Libgen". We aim to release TGLOF as a free public good.
Lastly, the greater vision for 3six9 Cognitio is to organize and operate in-person free educational bootcamps related to blockchain technology and crypto for talented but underprivileged youth primarily in developing nations.
- 3six9 Imaginari: The 3six9 Innovatio media wing responsible for all our amazing design and art direction. The 3six9 Imaginari team is currently working on content for 3xcalibur but in the very near future they will be transitioning into other ventures; including but not limited to:
- A character NFT collection based on the 3xcalibur lore
- A live-action series based on the 3xcalibur lore
- A manga based on the 3xcalibur lore
- An MMO-RPG (not play to earn)
As you can see we have truly "AMBITIONS ambitions". Many have told us we are "trying to do everything", that may be true to some extent, but who says we cannot try? NOBODY. That said, we are not stupid either, all these things cannot be pursued at once. The 3six9 Innovatio vision spans over many years, decades even - we will gradually and systematically work towards our goals and aims and pay no mind to skeptics.
What is 3xcalibur?
3xcalibur is a liquidity marketplace, powered by Tri-AMM architecture to facilitate both swapping (Stable & Variable), and borrowing/lending. Both the liquidity marketplace (3xcaliSwap) and money market (3xcaliCredit) are powered by constant function market makers.
In its first iteration, 3xcalibur offers users a permissionless, liquidationless, oracleless Open Finance protocol featuring stableswaps, variable swaps, borrowing & lending of any ERC20 asset.
Both financial primitives are highly composable and offer a plethora of new secondary and tertiary financial instruments that can be built on top of our base protocol. Not only can we build new products and features on top, but we can build across to maximize value between 3xcaliSwap & 3xcaliCredit.
We aim to be the premier liquidity marketplace on Arbitrum, facilitating both trading and borrowing/lending for our platform users.
With 3xcalibur, the resurgence of open finance is here.
What does 3xcalibur Solve?
Building a Product Catered to other Protocols/Projects
3xcaliSwap is a permissionless DEX that allows other protocols to easily acquire deep liquidity for their token, bribe $veXCAL holders to direct emissions to their pools, and also accrue fees from the liquidity they incentivize.
3xcaliCredit can be leveraged by protocols for raising capital via debt financing. Instead of selling their native token to raise capital, projects can borrow debt with their native token as collateral. This is a more ideal way to finance a project (especially in a bear market) compared to equity financing.
Solving Liquidity Games
3xcaliSwap is based on the original Solidly codebase. This means by design, our protocol is built to align emissions with fees generated, and not with liquidity. Protocols and other large stakeholders lock their $XCAL to receive $veXCAL and gain voting power to direct emissions to the pools they vote for.
We have also improved several areas of the Solidly codebase, which we believe were mechanical issues that hindered its success. With the Solidly design, any protocol or project can easily incentivize their own liquidity, be it for their token, their stablecoin, or even other derivatives, and while doing so, they accrue fees.
As a result, the liquidity attracted should be of “higher quality”, thanks to the “protocol first” nature of the design. Our Token mechanics and emissions schedule is an improvement on the Solidly and Velodrome iteration.
Oracleless Money Markets
The borrowing and lending feature is a money market facilitated by a constant product formula (AMM), which means it does not rely on oracles for pricing interest rates or collateral factors.
Using an AMM architecture is a novel way to create a liquid money market protocol. With 3xcaliCredit, all pools are self-sufficient, and have their own market reactive native interest rate & collateral factor discovery mechanism.
Every Asset Pair, E.g Token A (Asset) - Token B (collateral) can have multiple pools with a fixed maturity (Date). When the pool reaches maturity, borrowers who have not paid back their loans, have their collateral distributed pro rata amongst lenders based on their insurance coverage. There are no liquidations, only defaulting on borrowed assets.
Fixing Limited Asset Money Markets
3xcaliCredit is a fully permission-less money market. We allow anyone to create a pool for borrowing and lending by creating a pair: Token A (Asset) - Token B (collateral) with any maturity date.
This opens up the market offering markets for more exotic tokens (long tail assets) which are more volatile and illiquid. Something that traditional borrowing and lending protocols cannot offer due to the risks associated with these assets. We are degens ourselves and know there is a big demand for long tail money markets.
Increased Functionality by Leveraging both Swap & Credit Markets
3xcaliSwap combined with 3xcaliCredit allow for more sophisticated user functionality as well as our own opportunities to build on top of the base protocol.
For example, hedging more volatile long tail assets:
- Users build a leveraged short position by borrowing on 3xcaliCredit and then immediately selling the asset using 3xcaliSwap.
We can also use the 3xcaliCredit primitive to build more sophisticated products like Credit Default Swaps or Interest Rate Swaps (such products are currently in the research and concept phase as they are very powerful financial instruments and we want to release the best product we can).
3xcaliCredit does not rely on liquidations for bad debt. This results in a more user-friendly way to borrow in a decentralized way. Borrowers do not need to continuously monitor their health factor, and are not subject to liquidation cascades during times of market volatility.
Instead, borrowers have the freedom to pay back their debt anytime before maturity, and in the event of borrowers defaulting, their collateral is distributed to the lenders of the pool.
Borrowers and lenders have the optionality to customize their own risk profile by adjusting the APR when lending to a pool or borrowing an asset. For lenders choosing a higher APR, it means they have less collateral coverage (higher risk). For borrowers choosing a lower APR, it means there is less collateral needed to secure a loan (higher risk).
True Fair Market Value
Using a constant product formula to determine borrowing interest rates and collateral factors offers greater capital efficiency for borrowers and lenders. It results in the true fair market value for both interest rates for assets and collateral needed to borrow.
Liquidity Providers supply both Assets and Collateral to the pool. As lenders and borrowers begin to transact, it changes the composition of the pool - in turn this dynamically changes the interest rate and the minimum collateral required to borrow in real-time.
The fact that 3xcalibur works without the need for oracles or liquidators negates many attack vectors that may be used to exploit the protocol.
Optimized User Experience
In the same way that OpFi (Open Finance) mechanics are game-like, it means user experience is extremely important for the success of any project in this space. As such, organic growth for a post-product project is intrinsically tied to user experience (playing the game).
Users need to figure out what game they can play by using the product. With this being said, we spent a large amount of time on our front end, and optimized the UI/UX to make it easier for our users to play the game and capture value.
In our building phase, we spent time on user research, and conducting user interviews with native OpFi users to get feedback on the UI/UX. We did this in order to get more insights from our potential user base and optimize their user experience on the front end.
Arbitrage Opportunities (MEV)
Arbitrage occurs due to inefficiencies in capital markets when there are pricing discrepancies for assets across different markets. Automated Market Makers are able to keep assets listed on their exchange at market value due to such opportunities. When asset price on the AMM deviates from market price, arbitragers can profit from the spread.
Not only, can users profit from the standard arbitrage opportunities presented by our swap pools, but users can also profit from arbitrage opportunities presented by our AMM based credit market.
When 3caliCredit pools are imbalanced due to low interest rates or low collateral factors compared to other lending markets, users can take advantage of the difference in rates and collateral needed to borrow for profit.
The XCAL Token
$XCAL is the 3xcalibur Ecosystem Token. Issued on Arbitrum as a standard ERC-20 token. The token serves multiple purposes such as: accruing platform fees and bribes, voting on gauges and being the de-facto governance token.
It can be vote-escrow locked into $veXCAL for variable lengths: from 1 week to 3.69 years.
Eventually in a successive phase, $XCAL token holders will be able to get some of the benefits of veLockers (like fee accrual) without the need of locking.
Vote-Escrow locking $XCAL tokens results in vote-escrow $XCAL tokens ($veXCAL). The locked position will be represented by a veNFT and the $veXCAL holders will be able to participate in the overall platform governance.
They will be able to vote for which liquidity pools receive emissions in a given epoch by using the gauges in exchange of trading fees (for 3xcaliSwap pools), lending/borrowing fees (for 3xcaliCredit) and the corresponding bribes.
In addition to that, $veXCAL holders will receive $XCAL emissions for the liquidity mining program.
3xcalibur Vs Solidly
A large majority of Solidly’s token supply was distributed in the first 8 weeks, causing too much voting power to early lockers and disincentivizing later buyers to lock. To solve this issue, we will reduce the initial distribution to about 1.7% of the total liquidity mining emissions.
Another flaw in Solidly mechanism was reaching tail emissions very quickly, because of double decay in the weekly emissions: in fact, they were subject not only to the 2% weekly decay but also to the previous week locking proportion multiplier.
To prevent this issue, we set the weekly decay to 1%, only on the maximum weekly emissions, similarly to what Velodrome has proposed, but still using an adaptive algorithm to adjust the minting amount based on how much has been already distributed.
3xcalibur Vs Velodrome
Velodrome solved Solidly’s problems by changing the initial distribution and by keeping the weekly decay constant to 1%. This approach set the time length of the emissions to 4 years.
However, adjusting emissions based on the locked amount incentivizes users to buy and lock more tokens to avoid being diluted. For this reason, $XCAL weekly emissions are multiplied by circulating/total supply ratio as in Solidly.
Be that as it may, a consistent big amount of locked tokens (small circulating/total supply ratio) slows down emissions making the risk of being diluted (and so the incentive to lock) disappear. 3xcalibur solves this problem by adjusting the emissions algorithmically by checking the distance from certain milestones at each epoch (read below for more details).
In adjusting the emissions algorithmically via checking the distance from certain milestones at each epoch, we keep emissions length in the 3.5-4.5 years range by appropriately adjusting velocity.
To tune velocity, every epoch two parameters will be adjusted:
- Max weekly decay: as mentioned above, the weekly decay of max weekly emissions is 1% as in Velodrome, but it will be automatically adjusted to 2% to eventually slow down emissions.
- Tail emissions: if emissions have been too slow, the tail emissions get boosted.
We ran several simulations for weekly emissions, with different average circulating/total supply ratios, obtaining the following:
These simulations took into account all the vesting tokens that will be released weekly, variating the probability of locking a percentage of them. They also consider the edge cases of everything locked/nothing locked for the whole duration. On the X-axis, there are the amounts of tokens released each week, while on the Y-axis there are the weeks.
- Blue lines: simulations where the average circulating/total supply ratio was between 0 and 0.5.
- Cyan lines: simulations where the average circulating/total supply ratio was between 0.5 and 0.6.
- Green lines: simulations where the average circulating/total supply ratio was between 0.6 and 0.7.
- Red lines: simulations where the average circulating/total supply ratio was between 0.7 and 0.8.
- Magenta lines: simulations where the average circulating/total supply ratio was between 0.8 and 1.
THE $XCAL TOKEN HAS A MAXIMUM SUPPLY OF 100,000,000 XCAL
Development, operation and management of the 3xcalibur protocol is managed by The 3six9 Collective and overseen by 3six9 Innovatio.
The 3six9 Innovatio core team currently comprises 27 individuals. The team composition is as follows:
- Product Managers: 2
- Backend Developers: 5
- Frontend Developers: 4
- UI/UX Developers and Brand Team: 3
- Design & Brand Team: 5
- Policy Team: 2
- Community/Marketing Team: 2
- Cognitio Team: 4
The 3six9 Core Team will be receiving 21,000,000 XCAL (21%) tokens in total.
Vesting details will be released in the documentation within the next 24 hours.
The 3xcalibur Protocol’s advisory panel is made up of seasoned Open Finance professionals. Our advisors assist us in executing the 3xcalibur vision to the best of our capabilities.
Our Advisors include:
The 3xcalibur Advisory Panel will be receiving 2,200,000 XCAL (2.2%) tokens in total.
Vesting details will be released in the documentation within the next 24 hours.
In support of the growing Arbitrum ecosystem, we will be distributing grants in the form of $veXCAL veNFTs to projects within the Arbitrum ecosystem who wish to work with us through platform synergies or by migrating liquidity to 3xcaliSwap.
- Ten projects in total will receive an 3xcaliGrant
- Each veNFT will have 100,000 $XCAL locked for the maximum 3.69 years
1,000,000 XCAL (1%) has been allocated to the 3xcaliGrants program.
Projects wishing to learn more about the 3xcaliGrants program may reach out to us via Discord, Xen's Twitter or email@example.com
Discounted Community Round
As stated at the beginning of the article. 9,000,000 XCAL (9%) has been allocated to the $XCAL Discounted Community Round.
15,000,000 XCAL (15%) has been allocated to the $XCAL Public Round. More details regarding the public round will be released closer to platform launch.
36,900,000 XCAL (36.9%) has been allocated to the $XCAL liquidity mining program. More details on the LM program will be available in the documentation that will be released within the next 24 hours.
14,900,000 XCAL (14.9%) has been allocated to the $XCAL Treasury/Incentive fund. This fund will be used as more of an insurance fund or rainy day fund. However, we do hope we never have to touch these tokens.
Within the next 24 hours, the 3xcalibur documentation will be released. The documentation will provide clarity on a number of things including but not limited to:
- More details on the liquidity mining program
- Further explanations of the 3xcalibur Protocol including token mechanics
- Vesting details for team/advisor tokens
- Probably any other questions you have
To all venerated Insurgents: Thank you for sitting through this grueling read Insurgent. You probably have many questions but fear not, these questions will be answered in the documentation and/or the 3xcalibur Twitter Space which will take place after documentation has been released.
To all those preparing FUD: Go ahead!
- If it is genuine criticism, we will address it adequately and find solutions.
- If it is baseless FUD we will ignore you.
- If you attack the team or the community - we will come after you with fire breathing dragons and TRIPLE edged swords.
You will not be able to hide! 369 Machina oversees all.
🗡 Rebel With us
Discounted Community Round (NB: the page is live but the round is yet to commence)