Red Kite - Community discussion #1

Hello everyone,

We highly appreciated your active participation in the PolkaRARE IDO on the Red Kite launchpad on May 11, 2021.

During PolkaRARE’s IDO, an unexpected event occurred when participants were unable to swap $USDT for $PRARE directly on the Red Kite launchpad. While Red Kite Ethereum pools are designed to be as flexible as possible to support not only $ETH but also any other ERC20-compatible tokens such as $USDC and $PKF, the cause was because the ERC20 version of $USDT on Ethereum on mainnet is broken so that its transferFrom function didn’t return a Boolean flag as required by ERC20 specification.

Immediately, plan B was deployed to ensure maximum benefits for all IDO participants so that they receive their full allocations according to the announced schedule. At the same time, Red Kite’s technical team fixed the problem to support both standard ERC20 tokens and $USDT using a workaround solution, brought Red Kite back to normal operation, and also upgraded the launchpad to be ready for the next IDO.

For Red Kite to be more and more completed and for the Red Kite team to bring better experiences to all IDO participants on our launchpad, we would love to receive comments and ideas from you, our communities’ member, on 2 matters as follows:

1. Token to purchase IDOs on Red Kite

There are some aspects you might consider before casting your vote:

USDT/USDC pool ETH pool
Price volatility None High
Fee Cost more Cost less
Pool’s popularity among launchpads Not much Very popular
Are you in favour of USDT/USDC or ETH for purchasing IDO?
  • USDT/USDC
  • ETH
  • Both options

0 voters

2. “Topup" feature on Red Kite

We came up with an idea about the Top-up feature on Red Kite that helps users save gas fees by not having to transfer their funds to Red Kite every time a new IDO occurs.

This feature allows you to only send your token purchase fund once to a smart contract created by the PolkaFoundry team. PolkaFoundry team is NOT in charge of your funds, it is the smart contract’s job.

Let’s say you send 250 USDT to our smart contract for IDO participation. You can buy the next IDO with 100 USDT. You have 150 USDT left to join the upcoming IDOs. You top up your funds when the fee cools down. You can top up and withdraw the fund anytime you want.

So, what do you think about this idea?
  • Love it
  • Hate it
  • 50/50

0 voters


Please kindly note that every vote matters. We will put the final results into consideration which would significantly affect our decision-making in product development later.

Let us know what you think and the reason why you choose those options above.


If you have any more improvement ideas for Red Kite beyond the 2 topics above, feel free to share with us. Thank you for your time.


About Red Kite

Red Kite is a cutting-edge launchpad powered by PolkaFoundry as part of the growing $PKF ecosystem. We focus on solving two major problems of early-stage projects: limited marketing and lack of investors due to fraud concerns. Projects on Red Kite are carefully hand-picked through a vetting process that considers everything from the project teams’ origin to legitimacy and execution capability. These projects are also supported by a network of our tier-1 marketing partners, top influencers, and interactive communities to help them soar.

Need more information about Red Kite?

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5 Likes

The low volatility of the USDT/USDC pool makes it a great choice. Certainly less common in the space but realistically most of the calculations being done on the team/purchaser sides are based on dollars anyway so it’s a nice way to simplify the process.

Top up is a great idea. Being able to have flexibility for deposit times and reduce the number of deposits required will be a nice money saver.

1 Like

USD stablecoins: Definitely a great idea! ETH being too volatile would only cause issues. That’s why another launchpad (LPOOL) is changing from ETH to USDT now also as they had those kind of volatility issues as well and members complaining. They’re very happy USDT is being used in future.

Topup feature: A brilliant idea! I think it is extremely important to do our best to reduce gas fees as this is a very common problem every member of a launchpad complains about on the ETH network. Therfore reducing the number of required transactions to as few as possible 100% makes sense.

Therefore there should also not be a “token claim” be required but the token being airdropped.

Even better addition to the topup feature would be an auto-invest feature as well: You pay gas fee once & then your account invests automatically in every IDO you are eligible for.

1 Like

I would propose ETH due to gas cost. It is always cheaper for ETH. Regarding volatility, it is the question how much volatility are the fundraising teams willing to accept. Some of the risk would be on their side - e.g. we could have a pool in ETH with a fixed conversion rate. If the fundraising teams are willing, I would opt for it.

I just see gas cost as a bigger issue than volatility because gas cost can kill an IDO. You see it on DuckStarter where people stopped funding some projects 100% due to the gas. So I’d much rather have a solution against a potentially critical problem even at the cost of creating a volatility uncertainty.

1 Like

Hello guys, thanks for sharing your thoughts with us.

Both @Larry and @Chessdude got the point. ETH volatility and gas fee significantly have an impact on the user’s investment decision.

ETH price volatility is a big concern as well and people are inclined to go for safe options as USD pegged cryptocurrency. But there was a time the gas fee was much higher than the allocation you could buy. Both options are obviously not good things for IDO projects. People will hesitate to join and projects end up not raising enough funds for their future development due to either high token fluctuation or high gas fee. Big losses for both investors and projects.

The point is which option we should compromise with it until Polkadot mainnet goes live and cure all these pains.

Thanks for your suggestions.

I personally think the auto-invest feature might not work since each investor has his own investment taste. Even our team works on a careful selection process to present you with the high profile projects but there are many reasons that investors don’t choose them. Plus, another angle to look at is the auto-invest feature means PolkaFoundry team makes an investment decision on behalf of users. We don’t and won’t do it.

1 Like

Hi, I would like to make a suggestion about KYC other than the ones mentioned above.
How about implementing an external service like blockpass or fractal for KYC?

I guess the current situation is that the polkafoundry team is reviewing the submitted KYC, but I think it is too much of a waste of time for the good members of the team to spend on KYC and not enough time to handle KYC.
In fact, the KYC that I submitted has now been rejected, and when I sent an email to them a week ago, I immediately received a reply saying, “Please wait for it,” but there has been no progress since then.

I’m not particularly angry or dismayed, but I don’t think that taking more than a week to communicate KYC is a sufficient support system. Therefore, I am suggesting that we should find a way to do KYC in a way that does not burden the team, and I would appreciate your consideration.

1 Like

Hi there,

Can not agree more. We are in discussion with Blockpass and hopefully, the integration will be done soon. Please bear with us. We will update you asap regarding this topic.
Thanks for bringing it to our attention.

Cheers,

2 Likes

I see. I’m looking forward to hearing more.

Thank you :partying_face:

1 Like