#6 Investment Proposal - Nexton

Investment Proposal
1

1. Project Overview

  • Project Name : Nexton: Optimized Staking on TON
  • Company Name : Blockwave Labs
  • Company Location : Seoul, Republic of Korea
  • Category : DeFi
  • Official Website : Nexton Solutions
  • Whitepaper : Nexton Whitepaper
  • TGE Timing (expected date) : Nexton has received approval for listing on Gate.io and can proceed with the listing at any time during Q2 (4.30 - 5.16).

Token Information (if applicable)

  • Token Ticker : $NXT
  • Token Type : TEP-74
  • Explorer Link : The token has not been minted yet.
  • Total Supply : 500,000,000
  • Current Circulation Supply : 10.30% scheduled to circulate at the TGE.
  • Smart Contract : GitHub
  • Audit Report : Audit Report
  • Market Cap : Target market cap at listing is $25M based on FDV.

2. Team

Executive Members

Organization Chart

  • The organization consists of 1 PM, 1 designer, 1 FE Dev, 1 BE Dev, 1 smart contract Dev, and a quant team of 4 members.

History and Milestones

  • 2023 TON Accelerator Program: Selected as a pilot project.
  • 2023 AWS x DWF Labs TON Hackathon: Top 10
  • 2024 Global TON Accelerator Program: Selected as 1 of 14 teams out of 500+ applicants (June-July 2024).
  • Official Grantee of Ston.fi

3. Business

Business Status

Project Description
NEXTON is a DeFi-focused project developed by BlockWave Labs, aiming to enhance the ecosystem’s sustainability and growth by addressing token value stability issues. The project introduces innovative liquidity-locking mechanisms, such as staking and burning, to mitigate token value decline and align community growth with token utility.

Problems to Solve

  1. Value Decline of Tokens: Despite TON’s growth, token value often declines due to insufficient liquidity-locking mechanisms. This results in a mismatch between community growth and token value.
  2. Lack of Liquidity-Locking: TON tokens lack robust mechanisms such as staking and burning, which are essential to stabilize token value and prevent sustained downtrends after initial surges.
  3. Limited Token Utility: Current tokens have limited use cases, which hinders their ability to attract and retain users within the ecosystem.

Project Features

  1. Staking Mechanisms: Users can stake mainchain tokens to earn rewards, reducing the circulating supply and stabilizing token value.
    Loyalty points (NXT Points) are awarded for staking, encouraging long-term participation.
  2. NFT-Collateralized Loans: Users can borrow nxTON tokens by staking NFTs, introducing a new utility for NFTs within the mainchain ecosystem.
  3. Arbitrage Bot: NEXTON’s arbitrage bot increases trading volume in decentralized exchange (DEX) pools, generating profits for users and supporting deflationary mechanisms through token burning.
  4. Liquidity Pool Activation: By establishing and managing liquidity pools, NEXTON enhances trading volume and user convenience, attracting more participants to the ecosystem.
  5. Profit-Burning Mechanism: Profits generated from arbitrage activities are partially burned in collaboration with the Foundation, contributing to token deflation and value preservation.

Key Achievements

  • User Stats: The alpha version has more than 30,000 visitors with a 60% retention rate. (Not promoted yet)
  • Bot Performance: Total cumulative returns: 26.6% /: expected APY: 42.2%

Competitor Comparison

  • Jito in SOL: Jito focuses on MEV optimization for validators, catering to technical users. In contrast, NEXTON offers a more casual and accessible approach, combining staking, arbitrage, and NFT-based staking certificates. This aligns with Telegram’s user-friendly ecosystem, making DeFi approachable to a broader audience.
  • Etena in ETH: Etena reduces funding fees by connecting CEX and DEX positions, focusing on traditional DeFi strategies. NEXTON, however, simplifies staking and arbitrage while leveraging Telegram’s community-driven culture, making it less formal and more engaging for casual users.
  • Key Differentiator: NEXTON optimizes yields through arbitrage of meme coins, embracing the playful, meme-friendly culture of Telegram. This unique positioning lowers the barrier to entry while offering robust financial tools within the ecosystem.

Tokenomics

Token Utilities
Burn Logic in NFT Redemption.
Users who lock their NFTs as collateral receive $NxTON (representing the principal) and $NXT (representing the interest). To quickly redeem their locked NFTs, users must burn $NXT tokens, reducing the circulating supply of $NXT. This mechanism helps stabilize or support the token’s price.

Revenue Model

  1. Staking Fees: A percentage fee is applied to staking operations conducted through the protocol, ensuring consistent revenue while maintaining user benefits.
  2. Arbitrage Profits: The Nexton bot generates revenue by executing high-frequency arbitrage trading, with a share of profits reinvested into the Kaia ecosystem.
  3. Liquidity Pool Fees: The protocol earns transaction fees proportional to trading volume by facilitating trades in DEX pools.

Value to Kaia Ecosystem

  1. Increased Transaction Volume:
    The protocol actively drives up the ecosystem’s transaction volume through liquidity-boosting activities and staking utilities. This benefits all stakeholders, including users, token holders, and network participants.
  2. Deflationary Effect:
    Part of the arbitrage profits can be used to burn tokens, reducing supply and contributing to long-term token value stability.
  3. New User Attraction:
    Features like loyalty points and referral programs incentivize participation, expanding the ecosystem’s user base and increasing token utility.

Strategies
Buyback Strategy: To reinforce token value stability and demonstrate commitment to the ecosystem’s long-term growth, we will allocate a portion of the arbitrage profits generated by the Nexton bot to implement a strategic buyback program.

Business Plan

Marketing Strategy

  1. Influencer Partnerships
  • Strategy: Collaborate with global Key Opinion Leaders (KOLs) by involving them in the seed round to align their interests with NEXTON’s promotion and token value appreciation.
  • Objective: Boost NEXTON’s visibility, credibility, and adoption through KOLs’ influence.
  1. Staking and Arbitrage with various Meme coins
  • Strategy: Integrate staking and arbitrage features for various Meme coins on the NEXTON platform, tapping into large communities.
  • Objective: Attract various Meme coins’ players to NEXTON, driving platform traffic and adoption.
  1. Launchpad Collaborations with CEXs
  • Strategy: Launch $NXT tokens on centralized exchange (CEX) launchpads to gain exposure and attract token holders.
  • Objective: Drive token sales and widen the token holder base by leveraging CEX reach.
  1. Airdrops
  • Strategy: Distribute $NXT tokens via airdrops to potential users, encouraging participation in the NEXTON ecosystem.
  • Objective: Attract new users and incentivize early adoption through token ownership.

Community Strategy

  1. Incorporating Meme Coin Community
  • Strategy: Leverage various Meme coins’ players by integrating its community into NEXTON’s ecosystem.
  • Objective: Expand the NEXTON community with active, engaged users familiar with crypto ecosystems.
  1. Co-Marketing with Partners
  • Strategy: Execute joint campaigns with the ecosystem projects to foster shared community growth and engagement.
  • Objective: Enhance community interaction and adoption through collaborative promotions.
  1. Airdrops
  • Strategy: Provide token rewards to new users via airdrops.
  • Objective: Strengthen the community by incentivizing early participation and loyalty.

Partnership Strategy
NEXTON aims to expand its ecosystem through diverse DeFi products and strategic partnerships. The approach to establishing partnerships is as follows:

  1. Joint Marketing and Collaboration
  • Objective: Expand the user base through joint campaigns and marketing initiatives with ecosystem projects.
  • Strategy: Collaborate with DEXs, lending platforms, and LST protocols to drive user engagement and increase transaction volumes.
  1. Incentive Programs
  • Objective: Foster close relationships between partnered projects and users.
  • Strategy: Co-develop user rewards, airdrops, and liquidity incentives to encourage long-term engagement.
  1. Strengthening Long-term Relationships
  • Objective: Ensure partnerships remain sustainable and long-lasting.
  • Strategy: Conduct regular performance reviews and feedback sessions to improve collaboration while exploring new opportunities for ecosystem growth.

Currently working on various DeFi products and partnerships, and the strategy is as follows:

  1. Influencer Partnerships:
  • Strategy: Engage global Key Opinion Leaders (KOLs) by involving them in the seed round and aligning their incentives with promoting NEXTON and appreciating its token value.
  • Objective: Leverage the influence and reach of KOLs to enhance NEXTON’s visibility, credibility, and adoption among their followers.
  1. Co-Marketing with Partners:
  • Strategy: Collaborate with other projects and Dapps within the ecosystem to conduct joint marketing campaigns and cross-promotions.
  • Objective: Leverage the existing user base of partner projects to drive mutual growth and user acquisition.

Details: We have established partnerships with DeFi projects within the ecosystem, including DEXs, lending platforms, and LST protocols. By involving them in the seed round, we align incentives and plan collaborative campaigns to strengthen user engagement.

Backer

  • TON, DWF, Amber group, Ston.fi, Evaa, Bemo

Risk Points
Market Volatility:

  • The cryptocurrency market, including meme coins, is highly volatile, and the value of the $NXT token could be subject to significant fluctuations. This could affect the project’s stability and attractiveness to users and investors.
  • External market factors (e.g., broader crypto market crashes) could impact liquidity and TVL, making it difficult to predict performance.

4. Industry

Market Overview

Adding Utility to Meme Coins
The current cryptocurrency landscape is saturated with an abundance of meme coins. While these coins often garner significant attention and speculative interest, they generally lack tangible utility, limiting their long-term viability. By introducing real-world applications and meaningful functionalities, there is a substantial opportunity to elevate these tokens from being purely speculative assets to becoming integral components of blockchain ecosystems.

Potentials

Attracting Total Value Locked (TVL):
NEXTON’s approach can absorb TVL from other protocols by offering superior staking options, arbitrage opportunities, and liquidity-locking mechanisms. This strategic positioning will enable the platform to consolidate and grow its share within the decentralized finance (DeFi) ecosystem.

Enhancing On-Chain Liquidity:
Through targeted strategies such as incentivized liquidity pools and partnerships within the TON ecosystem, NEXTON can optimize on-chain liquidity. This not only benefits the platform but also contributes to the stability and scalability of the entire TON network.

5. Investment Overview

  • Proposed Investment Amount: $200,000
  • Term: SAFT