One of the issues faced by retail investors is that of being excluded from early investment opportunities that could help them make gains in the long term. One of the reasons for this is due to the limited number of places on a cap table.
Investors need not only a high capital but also access to timely information and an entry point to these private investments. Even then, investments aren’t guaranteed due to the limited number of slots.
Pre-public asset distribution can seem to be unfair and out of reach for most investors in this case.
prePO is aiming to solve this by providing an unlimited number of new seats for investors around the cap table thereby unlocking access for all and building a financially inclusive system.
What is prePO?
prePO is building a decentralized trading platform that would allow anyone to speculate on the valuation of a pre-IPO company or a pre-token project from anywhere around the world. The platform aims to democratize pre-public equity and address the problem of financial exclusion and provide permissionless access to users.
prePO is short for pre-IPO and it would allow for the creation of an unlimited number of new seats around the cap table thereby unlocking access for all.
How does it work?
The prePO ecosystem has 3 main actors; Traders, Liquidity Providers (LP), and PPO Token holders (Pregens):
- Liquidity providers
Liquidity providers provide liquidity to one or more prePO markets in the form of USD stablecoins. They receive 3 layers of rewards in return namely trading fees, PPO token rewards, and collateral farming rewards.
LPs do not face any liquidation risk and can achieve very close to a market neutral position with prePO’s architecture. This helps to kick off the LP Flywheel.
Traders get a chance to open either long or short positions in one or more prePO markets and receive 3 layers of rewards in return. This includes profit/loss from their position, PPO token rewards, and collateral farming rewards.
- Pregens/ PPO token holders
PPO token holders or Pregens take part in the prePO DAO governance system. Token holders get a chance to vote on proposals and get rewarded for doing so.
prePO’s market allows users to speculate on any particular pre-public asset and derive an estimated valuation for the assets. The pregens and users will be the ones choosing the markets that get a chance to be listed on the prePO.
Every prePO market gets defined by an asset, its valuation, and expiry date. Users will get a chance to enter their position and will get to know their entry price, max loss, and max profit while also having the option to exit their position at any time.
Some of the major features of the platform are:
- Community-driven: prePO follows a community-driven approach and every PPO token holder gets a chance to take part in its governance.
- Eliminating middlemen: prePO allows users to have full control over all of their assets as there is no intermediary. Its decentralization code cannot be tampered with and users also have no paperwork to do.
- High composability: prePO assets are standard ERC20 tokens making it easier to integrate with the DeFi ecosystem as new utilities can be unlocked with it.
- Equal access: Every user gets a chance to either go long or short on the pre-public assets without any limitations.
- Rewards: Liquidity providers and traders on the platform get bonus incentives through PPO token rewards and idle interest from yield farms.
- Secure and fast: By leveraging Layer2, prePO achieves low-latency and low-cost transactions without having to compromise with the security of the Ethereum network.
prePo’s Simulator is a tool that is designed to facilitate an understanding about how prePO works among its users. It allows users to play out different scenarios as a Liquidity provider or as a Trader on the platform.
It is currently in Beta mode and the prePO team is also planning to launch an ‘Advanced Mode’ and another surprise soon.
prePO’s decentralized platform is creating a financially inclusive system where everyone speculates and becomes a part of the IPO or token sale of a project/platform.
The platform raised more than $1.1 million in its seed round while gaining support from Apollo Capital, The LAO, Koji Capital, Fire Eyes, and other angel investors in both the fintech and crypto space.
prePO is democratizing pre-public equity by providing retail investors and traders a chance to get benefits with their 3-layer reward system. The prePO token holders or pregens take part in not only the governance of the platform but also in choosing the projects and companies that get to become a part of the prePO market.
The platform is expanding its userbase and reach in the DeFi space with its innovative approach to asset distribution among the public.
Disclaimer: This is a paid post and should not be treated as news/advice.