Understanding stakeyards

Understanding dApp Creation in Stakeyards with Spec Token Example

In Stakeyards, a decentralized platform, investors can create their own dApps (decentralized applications) to explore profitable investment opportunities. Users, known as pitchers, can approach investors with exciting proposals, and the platform creates a collaborative environment where multiple investors can jointly invest in promising opportunities.

Let's break it down with an example using spec tokens to make it simple and engaging.

What is a Dapp in Stackyards

A dApp is essentially an individual space created by investors where they can receive pitches—proposals from pitchers outlining potential high-reward investment opportunities. Each dApp can be managed by one or more investors, allowing for a collaborative investment process.

### Example: Spec Token Investment Pitch

Imagine that a new spec token is about to enter the market. You, as a pitcher, believe that this token will skyrocket in value within the next six days. Here's how the process unfolds in the Stakeyards dApp ecosystem:

1. Pitcher’s Proposal

You create a pitch inside an investor’s dApp. In your pitch, you specify:

- The spec token’s potential for growth.

- A time frame (e.g., six days) within which it is expected to rise.

- The amount of capital required for the investment.

The investor reviews your pitch and evaluates the proposal.

2. Investor Review

Investors in the dApp review the details of the spec token. If all investors agree that this is a promising opportunity, they may decide to invest, either individually or together.

For example:

- Investor A might want to invest $500.

- Investor B wants to invest $300.

Together, they cover the required capital of $800 for your pitch. However, if any investor is not comfortable with the pitch, they can opt out, and no profit will be shared with them if the investment succeeds.

3. Collateral for Approval

Before approving the pitch, each investor must provide a collateral in the form of governance tokens. These tokens show their commitment to the pitch. If the pitch succeeds, this collateral will be returned to the investors.

If you, as a pitcher, fail to deliver the promised returns, 40% of the pitcher’s collateral will be deducted and transferred to the investors as compensation for their trust and potential losses.

4. Success of the Pitch

If the spec token performs as expected and profits are made, the returns are distributed among the participating investors. Additionally, the investors’ governance tokens used as collateral are transferred to the pitcher as a reward for the successful pitch.

What Happens When You Make a Pitch?

- As a pitcher, you must provide collateral to make your pitch credible.

- Example: If you want to pitch an investment worth $1000, you might need to put down $200 worth of governance tokens as collateral.

- If the pitch fails, 40% of this collateral is deducted and given to the investors.

- Example: In case of failure, you will lose $80 of your collateral, which is distributed to the investors who supported your pitch.

- If your pitch succeeds, investors will get their profit as agreed, and your collateral is returned. Furthermore, as a pitcher, you could become an investor if you reach a certain threshold of successful pitches.

- Example: After completing 10 successful pitches, you may qualify to become an investor yourself.

Registering Liquidity for Investment

Each investor needs to register liquidity for investments. This is a Web3 feature where:

- The system verifies your account balance and records it in the platform's database.

- Whenever you or other users need to confirm liquidity, the system automatically checks and verifies the amount linked to your wallet address.

This ensures that all investors have sufficient funds before approving a pitch, streamlining the process and avoiding manual checks.

Detalks: The Decentralized Chat for Collaborating

Once an investor approves a pitch, the pitcher can start a private conversation with the investors using the Detalks decentralized chat system. Detalks facilitates open discussions where both parties can:

- Plan out further investment strategies.

- Discuss details of the pitch, such as market trends, risk assessments, and potential returns.

Key Takeaways

- Collaborative Investment: Multiple investors can join forces within a dApp to invest in a pitch.

- Governance Tokens: Used as collateral by both investors and pitchers, ensuring accountability and success-driven participation.

- Liquidity Verification: Investors must register liquidity through a Web3 process to ensure they are ready to invest.

- Decentralized Collaboration: Detalks allows for seamless communication between pitchers and investors once a pitch is approved.

Stakeyards provides a unique, decentralized investment ecosystem where collaboration, trust, and governance tokens empower both pitchers and investors to capitalize on emerging opportunities like spec tokens, in a fair and transparent manner.

Stay tuned for more exciting updates on how to create, pitch, and succeed in the Stakeyards ecosystem!