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OpenPad builds three Web3 financing tools to meet these requirements: Liquidity Vaults, Initial Token Offerings, and Follow-on Token Offerings.
- Liquidity Vaults (LV): LVs are financing contracts that enable pre-launch Web3 projects to issue vaults and access to the locked liquidity for their future tokens. At this stage, Web3 projects seek liquidity financing on the premise of future tokens and are entitled to lock-up terms with pre-defined deal terms.
- Initial Token Offerings (ITO): ITOs are financing and token launch tools for launch-stage Web3 projects to issue tokens, conduct initial offerings, and create a secondary trading market. ITOs cover initial decentralized exchange offerings and are similar to Web3 launchpads. OpenPad Labs facilitates underwriting, capital raising, liquidity provisioning, public trading, economical design (supply and demand), demand aggregation (marketing), asset management, and token distribution.
- Follow-on Token Offerings (FTO): FTO is a bonding-based financing tool for post-launch Web3 projects, enabling them to issue bonds for their publicly-traded tokens and offer structured discounts to access capital and liquidity. FTO allows Web3 projects such as DAOs and DeFi protocols to issue bond markets to attract liquidity and capital from the public at the post-ICO stage. FTOs are similar to other fundraising products; however, they are tokenized bonds where price discounts are applied in exchange for being illiquid for a certain period -- vesting. Bonds are tokenized with NFTs to be publicly traded while vested, creating a secondary market for trading. FTO is a secondary token and liquidity offering based on crypto bonds to finance vetted Web3 startups after their initial token offerings.