UNCX Network has been awarded a grant from IOTA and is one of the 25 projects funded by the IOTA Foundation. To date, the IOTA Foundation has distributed $2.74 million to support the development of these innovative projects within the Web3 ecosystem.
Overview
UNCX Network (formerly UniCrypt) is a decentralized protocol offering a suite of services designed to simplify project creation and launch while ensuring investor safety. From Initial Liquidity Offerings and Liquidity Lockers to Token Vesting, Staking-as-a-Service, and a Token Minter, UNCX Network provides a variety of tools for developers and investors to build in the DeFi space.
UNCX Network provides five main services:
Initial Liquidity Offering (ILO) / Launchpad
The Initial Liquidity Offering (ILO) and Launchpad service allows developers to raise funds to provide liquidity for new crypto tokens. Without sufficient liquidity, buying and selling tokens would be difficult for interested traders.
Developers can adjust their presale to suit their requirements while maintaining transparency for investors. Typically, these tokens are offered at a discounted price before their launch which attracts investors to new tokens launching using UNCX Network.
UNCX Network’s ILO service also includes audit and KYC badges from approved partners, providing additional information and assurance about the presale for potential investors.
One notable project that launched using UNCX is Baby Doge, which reached a peak market cap of $1 billion during the 2021 bull cycle. Some of the other projects that launched using UNCX that generated good returns:
Liquidity Lockers
The concept of locking liquidity is now a common practice in crypto to avoid rug pulls, but this wasn’t the case before. UNCX claims to have introduced the concept of liquidity locking in 2020 to protect investors by securing liquidity provider tokens in smart contracts for a specified period. This prevents developers from removing liquidity from the pool which ensures that investor funds remain safe until the lock period expires.
Developers can lock a set percentage of liquidity upon token launch (or anytime later) for a chosen duration using UNCX. This approach ensures developers don’t have critical control of users’ funds.
Token Vesting
Token Vesting is similar to Liquidity Locking but for regular tokens. It allows developers to lock a specified amount of tokens for a predetermined period, preventing large sell-offs that could destabilize token prices. This helps maintain stable token prices and shows the developers’ commitment to the project.
This service from UNCX is particularly useful in various scenarios for projects, such as vesting tokens for early investors, distributing airdrops over time, and securing token reserves and ecosystem funds.
Staking / Staking-as-a-Service
UNCX Network offers staking solutions that allow developers to create staking pools. These pools let community members stake their tokens and earn rewards. The platform provides two types of boosts:
- Time Boost: This option allows users to lock their staked tokens for a longer period, thereby increasing their share weight and rewards proportionally. The longer the lock period, the higher the boost.
- UNCX Boost: Users can also use UNCX tokens to boost their stake, which enhances their share weight and rewards. This boost is added on top of any time boost applied.
Token Minter
The Token Minter is designed for developers who want to create tokens without requiring Solidity skills. It offers customizable tax options, including reflection, LP, and buyback taxes, and supports minting on multiple chains. The minter includes built-in security features such as Lossless, which protects against hacks, and AntiBot, which prevents sniping bot attacks. An admin panel allows post-launch editing of token settings. Tokens minted through this service are integrated with UNCX’s platform and come with pre-audited security assessments.
Value Proposition
UNCX Network offers a suite of DeFi services that enhance security, transparency, and ease of use for both developers and investors. Key aspects of the value proposition include:
- Security and Investor Protection: UNCX Network pioneered liquidity locking, which protects investor funds by preventing unauthorized liquidity removal. The platform also offers token vesting to ensure project teams are committed to long-term development, reducing the risk of large sell-offs.
- Simplified Project Launch: The Initial Liquidity Offering (ILO) and Launchpad services provide a straightforward process for raising funds and launching new tokens. These services include customizable presale options and transparency through audit and KYC badges, making it easier for developers to gain investor trust.
- Customizable Token Creation: The Token Minter allows developers to create tokens with customizable tax options and built-in security features without requiring coding skills.
UNCX Network provides user-friendly solutions for developers looking to launch and manage projects and offers investment opportunities for investors.
What Problem the Protocol is Solving
UNCX Network addresses several key issues in the DeFi space:
- Investor Safety: By introducing liquidity locking and token vesting, UNCX Network protects investors from rug pulls and sudden large sell-offs that can destabilize token prices.
- Ease of Project Launch: The Initial Liquidity Offering (ILO) and Launchpad services provide a streamlined process for developers to raise funds and launch new tokens, with customizable presale options and transparency for investors.
- Token Creation Without Coding: The Token Minter allows developers to create tokens with customizable tax options and built-in security features without requiring coding skills, making token creation accessible to a broader audience.
Target Users of the Protocol
UNCX Network can be used by both investors and developers, providing specific tools and services to meet their needs.
For Investors
- Initial Liquidity Offering (ILO): Investors can participate in pre-sales of new tokens on the UNCX platform, gaining early access to potential high-growth projects. The ILO service ensures transparency and security, with audit and KYC badges from approved partners.
For Developers
- Initial Liquidity Offering (ILO): Developers can raise funds for their projects by conducting presales on the UNCX platform. The ILO service provides customizable options to meet specific requirements and ensures transparency for potential investors.
- Liquidity Lockers: Developers can lock a set percentage of liquidity to secure investor funds. This prevents unauthorized liquidity removal and enhances investor confidence in the project.
- Token Vesting: Developers can lock regular tokens for a predetermined period to demonstrate their commitment to the project. This helps in securing token reserves, distributing airdrops over time, and vesting tokens for early investors.
- Staking-as-a-Service: Developers can create staking pools to incentivize their communities. These pools allow token holders to stake their tokens and earn rewards, supporting project stability and growth.
- Token Minter: Developers without coding skills can create customizable tokens with built-in security features using the Token Minter.
Sector Outlook
UNCX Network operates primarily within the DeFi launchpad sector. The launchpad sector focuses on providing platforms for new projects to raise capital and launch their tokens securely and transparently.
One of the best fee-generating projects in recent DeFi history is a Launchpad project, Pump.fun has generated $65 million in revenue within just five months of its launch. The platform ensures that all created tokens are fair-launch with no presale and no team allocation. Celebrities like Caitlyn Jenner and Iggy Azalea have launched tokens using Pump.fun. Pump.fun’s method of using a bonding curve for token sales and automatically depositing liquidity into Solana’s Raydium upon reaching a certain market cap has set a new standard for launchpad security. Despite its success, there have been incidents where celebrities like Davido have been involved in rug pulls after launching a token through pump.fun so caution is advised when buying tokens launching using pump.fun.
Growth Factors
The DeFi launchpad sector can see growth in the upcoming years due to several factors such as:
- User-Friendly Interfaces: Platforms with easy-to-use interfaces and comprehensive tools attract a broader user base. Simplifying the process of participating in token sales and managing investments is key to increasing user adoption.
- Increasing Demand for Secure Fundraising: As DeFi grows, the need for secure and transparent fundraising mechanisms becomes more critical. Launchpads offering robust security measures and transparent processes will continue to attract new projects and investors.
- Advanced Risk Management: Platforms providing advanced risk management features, such as automated audits and real-time monitoring, will be more attractive to both developers and investors, helping mitigate potential risks and ensuring fund security.
Similar dApps in the Sector
Several platforms highlight the importance and growth of the DeFi launchpad sector, similar to UNCX Network:
- Pump.fun: Pump.fun offers a unique approach to token issuance with its bonding curve mechanism, which provides un-ruggable liquidity and enables speculative microcap trading without the worry of malicious developers removing liquidity.
- Polkastarter: Polkastarter enables projects to raise funds through token pools and auctions. During the peak of parachain auctions, Polkastarter played a significant role in facilitating project launches on the Polkadot ecosystem.
UNCX is one of the pioneers in the Launchpad sector launching back in 2020 with a cumulative fees earned of $10m.
Business Model
UNCX Network generates revenue through a variety of fees associated with its services. The protocol charges fees for various services, including Initial Liquidity Offerings (ILO), liquidity locking, token minting, and staking. The collected fees are used to fund ongoing development, enhance security measures, and support platform growth.
What Fees are Charged
Initial Liquidity Offering (ILO) Fees:
Fees for participating in token presales and initializing liquidity pools.
| AMM | Blockchain | Flat Fee | Upon Market Initialization Fee |
| Uniswap | Ethereum | Free | 1% of LP locked |
| PancakeSwap | BSC | Free | 2.2% of the raised funds (for AVAX only) |
| BabyDogeSwap | BSC | Free | 2.2% of the sold tokens (for AVAX only) |
| QuickSwap | Polygon | Free | |
| TraderJoe | Avalanche | 4 AVAX | |
| Camelot | Arbitrum One | Free | |
| Sushiswap | Arbitrum One | Free |
LP Lock V2 Fees:
Fees for securing liquidity provider tokens in smart contracts.
| Blockchain | Flat Fee | Incremental Lock Fee | Split Lock Fee | Relock Fee | Change Ownership Fee | PCS v1 to v2
Migration Fee |
| Ethereum | 0.1 ETH | 1% of locked LP | Standard flat fee | 1% of relocked LP | Free | 1% of migrated
locked supply |
| Base | 0.03 ETH | |||||
| BSC | 0.2 BNB | |||||
| Avalanche | 1 AVAX | |||||
| Polygon | 100 MATIC | |||||
| Arbitrum One | 0.05 ETH |
LP Lock V3 Fees:
Fees for locking liquidity in the latest version of the liquidity locking service.
| Fee Option | Liquidity Fee | Collect Fee | Base Fee (Additional) |
| Default | 0.50% | 2% | 0.03 ETH |
| LVP | 0.80% | 1% | |
| LLP | 0.30% | 3.50% |
Token Vesting Fees:
Fees for locking tokens to ensure project commitment and stability.
| Service | Fee |
| One-time Lock of Tokens | 0.35% of locked tokens |
| Infinite Locking Allowance | 10,000 USDC/BUSD/DAI |
Token Minter Fees:
Fees for creating customizable tokens with security features.
| Service | Blockchain | Flat Fee | Additional Fee |
| ENMT v1 | Ethereum | 0 ETH (free) | 0.3% of minted supply (0.2% on Polygon, Arbitrum One) |
| BSC | 0 BNB (free) | ||
| Arbitrum One | 0 ETH (free) | ||
| Polygon | 250 MATIC | ||
| Avalanche | 2.5 AVAX | ||
| Tax Token | Ethereum | 0.035 ETH | 0.25% of minted supply |
| BSC | 0.2 BNB | ||
| Arbitrum One | 0.02 ETH | ||
| Polygon | 40 MATIC |
Staking as a Service (SaaS) Fees:
Fees for creating and managing staking pools to incentivize communities.
| Blockchain | Flat Fee | Additional Fee |
| Ethereum | 0.15 ETH | 1% of tokens added
to the reward pool |
| BSC | 1 BNB | |
| Avalanche | 1 AVAX |
Tokenomics
The $UNCX token is the primary, deflationary governance token of the UNCX platform. It plays a crucial role in aligning incentives among users, providing governance capabilities, and facilitating platform growth. Here is a detailed look at the utility, supply, and history of the $UNCX token.
$UNCX is designed to be deflationary through a structured burn mechanism. A portion of the fees generated from platform activities, such as transaction fees and performance fees, is used to buy back $UNCX tokens from the market. These tokens are then burned, permanently removing them from circulation. This continuous reduction in supply aims to increase the scarcity of $UNCX over time, potentially enhancing its value.
Utility of $UNCX
Staking: Staking $UNCX allows users to receive yields in $UNCX. This mechanism incentivizes holders to lock their tokens in the platform, supporting its stability and security.
Staking: Staking $UNCX allows users to receive yields in $UNCX. This mechanism incentivizes holders to lock their tokens in the platform.
Referral Program: Holding $UNCX makes users eligible for rewards from the platform’s referral program.
Token Supply
The initial supply of $UNCX was 50,000 tokens. As of July 2024, various burns have reduced the current supply to 36,163 $UNCX. In total, approximately 13,837 $UNCX or roughly $5.42 million worth have been burned over the years, reducing the circulating supply and supporting the token’s deflationary nature.
Previously, $UNCL was used within the UNCX platform for various utilities, including staking and rewards. In 2023, the platform transitioned from $UNCL to $UNCX to streamline operations and consolidate the ecosystem under a single token. This transition was aimed to simplify governance and utility functions, making the platform more efficient and easier for users to engage with. As part of the transition, all $UNCL utilities were migrated to $UNCX, and $UNCL was discontinued.
Risks & Security
Audits
Softstack (previously Chainsulting) has performed several audits for UNCX, including audits for the Uniswap LP Token Locking Contract V2, Staking/Farming V2, and ENMT V2 contracts.
Security Measures
Whitelisted Audit/KYC Partners:
UNCX Network has partnered with several reputable audit and KYC partners to ensure the security and reliability of projects launched on its platform. This encourages developers to audit their contracts before an Initial Liquidity Offering (ILO) and address potential vulnerabilities early on.
- Audits: Conducted by partners such as SolidProof.io, Line1, Softstack, Hacken, and others.
- KYC: Provided by partners like SolidProof.io, Line1, Assure DeFi, and Cyberscope.
These partnerships help identify high-risk tokens and ensure that projects are secure and transparent. It is important to note that both audits and KYC processes are optional for projects launching on UNCX, but they are encouraged to enhance investor trust in the project.
Potential Risks
- Smart Contract Risks:
- For All Users: Despite thorough audits, smart contracts may still have vulnerabilities that could be exploited. Continuous monitoring and regular updates are essential to maintaining security. Users should also be aware of the risks inherent in interacting with DeFi protocols.
- Liquidity Risks:
- For Liquidity Providers: Periods of low liquidity can affect the execution of trades and the stability of the protocol. Ensuring adequate incentives for liquidity providers and having mechanisms to handle low liquidity scenarios are essential.
- Token Performance Risks:
- For Investors: Projects launched on UNCX might not always deliver the best returns and could lead to significant losses.
Team
UNCX was founded by two individuals, James and Antoine Chaveron, in June 2020 with no outside funding or investment. Over time, the team has grown significantly to a team of over 25 members. Some of the team members and their roles mentioned from UNCX site:
Founders: James, Antoine Chaveron
Product: Hubert Matecki, Harry Johnson
Developers: Pablo, Beary, Marc Antoine Ourradour, Pierrot
Designer: Stephen Howe
Support: John Dohhhhh, Alex ‘Aesy’
Project Investors
UNCX Network does not have any investors. The platform was initially bootstrapped by the founders and has grown organically through its services and community support.