The Requirements Projects Need to Meet to be Accepted by DeFiDrop

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The Requirements Projects Need to Meet to be Accepted by DeFiDrop

Jun 4 2021

In brief

  • DeFiDrop is an emerging DeFi launchpad and incubator that recently finished its second token launch.
  • The first token launch was in late April, featuring TokenEcho, while the second one was a month later, offering ApeTools.
  • Any emerging project can become next to see launch, but they must first ensure that they meet the requirements.

DeFiDrop is the DeFi sector’s new launchpad and incubator project that aims to help other DeFi protocols get started by launching their coins and exposing them to a supportive community

DeFiDrop is an emerging DeFi project that claims to have two goals — helping to streamline the raise process for new teams that wish to make an impact in the sector, and ensuring quality minimum guaranteed allocations through their fairly distributed and transparent staking score-based model.

As it said itself, an important part of reaching these goals, and particularly the first one, is the project’s complete vetting process which includes a general project overview, its feasibility, and checking out other aspects.

DeFiDrop already approved two separate projects which were launched on its launchpad in the last month and a half. The first one was TokenEcho, which was launched back in late April. The second one, ApeTools, saw launch only about two weeks ago, around May 23rd.

While the community is excited to see which project will be supported next, there are certain requirements that projects themselves should be aware of if they wish to even be considered.

What Requirements DeFiDrop Has for Upcoming Applicants?

According to DeFiDrop, the first and most important condition that new upcoming projects need to fulfill is to have trustless and immutable code. In other words, DeFiDrop needs the projects to be true to their word in the best way possible, which is basically to write it in stone.

Then, there are several conditions that are marked as ‘required.’ which means that the project will be rather insistent on these ones, likely with no possibility of a compromise. For example, there can be no minting of any kind, unless under multisig which is pre-communicated and arranged with trusted industry leaders. This is understandable enough, as DeFiDrop’s own reputation will depend on how the projects behave since helping them get started is not much different from recommending them.

Another thing that is required is for the projects to have a minimum base liquidity lock on DEX. This is another thing that DeFiDrop will insist on, and something that projects won’t be able to find a way around.

The third condition marked as required is that there must be minimum base team token lock/vesting, and finally, the last one, is a Proof of concept or MVP pre-ido, code repos, which were either made available for DeFiDrop to review, or the public itself. The project stated that it understands the risks of sharing new, original code before the project even sees the launch. After all, crypto is a competitive industry, and the DeFi sector is even worse in that regard. However, DeFiDrop sees it as very important to verify to some extent that the code is real, and not, as it calls it, vaporware.

Apart from these requirements, the launchpad-based project also pointed out that networking is important in crypto and DeFi, which is why support from any industry or project leaders will, indeed, hold weight when deciding whether or not to accept a project. It is also important for the project to have its code audited, and there is optional KYC by DeFiDrop, although these might be the ones that projects might manage to avoid unless there are some particularly suspicious elements to them.