Get huge capital infusion by launching a DeFi Crowdfunding platformAuthor DeFi, DeFi Crowdfunding Platform Development
Financial independence is the biggest trend right now in the world. However, there is a big gap between the rich and the poor due to economic and social issues. In recent times, the phenomenon of “Decentralized Finance” has become popular now due to its usage of blockchain technology and crypto tokens. DeFi also eliminates intermediaries from all the basic services like borrowing, lending, and staking. Likewise, entrepreneurs who have bright business ideas need adequate funding for launching their venture in the market. Crowdfunding is a cost-effective alternative for fulfilling their objectives. They can approach investors for raising funds based on their soft cap and hard cap target. Let us explore more about the concept of DeFi crowdfunding platform development.
How does a DeFi crowdfunding platform function?
A Decentralized Finance (Defi) crowdfunding platform is free from the control of centralized authorities and the influence of middlemen. It offers huge benefits for ambitious cryptopreneurs through flexibility, immutability in data storage, KYC/AML verification of all donors, low risk, and 24×7 creation of fundraising campaigns, and transparency. Besides that, techpreneurs can achieve their goals successfully as the fundraising targets can be achieved in no time.
Why is MantraDAO an ideal DeFi crowdfunding platform?
Crowdfunding campaigns are successful due to strong support from the community. Similarly, MantraDAO operates on the RioChain network. It focuses on 3 aspects, DeFi, community governance, and raising money quickly for the projects of entrepreneurs and startups. The Unique Selling Point (USP) of the MantraDAO crowdfunding platform is that it is cross-chain compatible.
This helps cryptopreneurs immensely as Binance Smart Chain (BSC), Cardano, Ethereum, Polkadot, Polygon, RioChain, Solana, and Stellar. Generally, investors receive high-value crypto tokens as rewards for contributing capital to the project.
Accordingly, techpreneurs can accumulate enough funds via the MantraDAO DeFi crowdfunding platform. This is because it has integrated with major crypto exchanges like Binance, Gate.io, OKEx, Poloniex, and Bithumb. Besides that, interested DeFi enthusiasts can contribute funds for promising business ventures via PancakeSwap and Uniswap.
MantraDAO was launched in June 2020 and has made rapid progress in the competitive DeFi ecosystem. In particular, interested investors contribute funds via the OM token (an ERC-20 asset). OM token holders can use the digital asset for lending as well as staking on the MantraDAO platform.
Moreover, OM tokens will be backed up by parachains on the Polkadot blockchain network in the future. Hence, entrepreneurs will get funds in a lightning-fast manner. Investors can purchase the native token of MantraDAO from decentralized exchanges like Hotbit and Uniswap.
They can also convert their existing holdings of Bitcoin (BTC), Ethereum (ETH), and Tether stablecoin (USDT) into OM crypto tokens via spot trading.
Analyzing how Simple Agreement for Future Tokens (SAFT) works in DeFi crowdfunding
Entrepreneurs can easily list their projects on a Decentralized Finance crowdfunding platform. They should include details about their fundraising target, objectives, and roadmap. For example, MantraDAO will automatically conduct Know Your Customer (KYC) verification for all retail investors.
KYC checks include the analysis of the background and data of each investor, collection of relevant documents, and complying with the laws issued by regulatory authorities.
This ensures a secure fundraising campaign for cryptopreneurs as fraudsters and scammers are automatically eliminated from participation. Therefore accredited investors can sign the terms and conditions mentioned in the investment contract.
Fund contributors benefit from accountability through the usage of electronic signatures. An independent custodian will handle all the received money.
Moreover, techpreneurs can track fundraising progress on a real-time basis. They will know the amount deposited by each user and his/her wallet address. Entrepreneurs can also reduce discrimination between small and big investors.
Thus, no individual fund contributor can control the secondary market.
Overall, there are 3 phases in a DeFi crowdfunding platform, Value Locks (VL), integration with the Decentralized Autonomous Organization (DAO), and Milestone based fund release.
Start DeFi Crowdfunding platform development and move ahead in the digital economy
Why is Milestone-based fund release the specialty of a DeFi crowdfunding platform?
It makes entrepreneurs give focus on the implementation of their project. They will get funds in regular intervals after the completion of a specific phrase or a stage. Indeed, it safeguards investors as they receive high returns in sync with the promises mentioned in the whitepaper of the platform.
Moreover, investors who hold native crypto tokens of a DeFi crowdfunding platform receive several benefits. They get advantages like an early supporter slot, governance rights (decision-making and voting rights), and incentives from staking and yield farming.
Further, cryptopreneurs get a high demand for their project’s native tokens. For instance, they can allocate fixed liquidity with the liquidity pairs offered by Decentralized Exchanges (DEXes) like PanCakeswap and Uniswap.
What are the various services offered for DeFi Crowdfunding platform development?
Innovative entrepreneurs can collaborate with AppDupe for creating a customized DeFi crowdfunding platform. Our professional developers are well-versed with the new trends in blockchain technology, cryptocurrency tokens, and the implementation of fundraisers.
We provide a range of solutions like the creation of white-label clones of PancakeSwap and Uniswap, digital marketing, integration with hardware and software wallets, legal compliance, maintenance of the DeFi platform, smart contract auditing, and technical assistance.
What is the cost of DeFi crowdfunding platform development?
The budget of establishing a ready-made crowdfunding platform depends on numerous aspects. It depends on the nature of the blockchain network, seamless integration with digital wallets, smart contract auditing, and the type of project launched by entrepreneurs like you.
Above all, crowdfunding campaigns have become efficient and more simple due to the entry of Decentralized Finance (DeFi) platform development. Entrepreneurs can sell their crypto tokens either via a primary or a secondary sale. For instance, they can target investors from different regions like Asia, Europe, Middle East, and the USA.
The future of Decentralized Finance crowdfunding platform development will depend on liquidity locks. Assets of investors will be deposited in an escrow-based smart contract to prevent disputes.
Veteran cryptopreneurs like you can quickly raise funds by launching a Special Purpose Vehicle (SPV). They can entice investors by offering participation in governance and staking rewards for their liquidity contribution.
Above all, setting up a DeFi crowdfunding platform is a good option for you as there is no dependence on brokers, dealers, and portfolio managers. Hence, give us a call now and maximize the power of tokenized fundraising.
Stay ahead of your competitors via DeFi crowdfunding platform development
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