Scrips is an innovative peer-to-peer Over-The-Counter (OTC) trading platform designed for small-cap cryptocurrencies and presale allocations. By leveraging smart contract technology, Scrips ensures secure and transparent on-chain transactions, addressing the critical issues of unauthorized token trading and high platform fees that plague existing OTC desks. The platform's unique features include customizable vesting schedules for token sales and direct integration with leading crypto launchpads for trustless presale allocation trading. Scrips introduces a utility token, $SCRIP, to foster ecosystem growth and reward users through staking and a referral program, creating a robust and user-friendly environment for crypto trading.
In economics, a Scrip is a substitute or alternative to legal tender. Holding a Scrip entitles the bearer to receive something in return. Scrips come in many different forms, primarily as a form of credit, with the document acknowledging the debt. They can also represent fractional shares resulting from a split or spin-off, or they may indicate currency issued by a private corporation, such as frequent flier miles. We chose the name Scrips because of its uniqueness and its fun application for a peer-to-peer OTC trading desk.
The current landscape of cryptocurrency OTC desks is fraught with several significant challenges. Security remains a primary concern, as many platforms permit users to trade tokens they do not possess, leading to fraudulent activities and loss of trust. High platform fees further exacerbate the problem, reducing profitability for traders and discouraging frequent use of OTC services. Transparency issues also undermine user confidence, as transactions conducted off-chain lack the visibility needed to ensure fairness and reliability. Additionally, the absence of flexible trading options, such as vesting schedules, limits the ability of users to manage large token allocations responsibly.
Centralized OTC trading desks are particularly problematic due to their reliance on intermediaries, which increases the risk of manipulation, delays, and security breaches. Centralized platforms are also more susceptible to regulatory crackdowns and single points of failure, making them less reliable for users seeking trustless and transparent trading environments.
Blockchain-based peer-to-peer trading desk solutions, like Scrips, are better equipped to handle these issues. By utilizing smart contracts, transactions are automated and trustless, eliminating the need for intermediaries. This ensures higher security, transparency, and efficiency, reducing the risk of fraud and enhancing user confidence.
Scrips addresses these challenges head-on with a comprehensive and secure OTC trading platform. By utilizing smart contract technology, Scrips ensures that all deposits are securely held and that tokens listed for sale and funds from buy offers are fully backed. This approach mitigates the risk of unauthorized trading and enhances the overall security of the platform. Furthermore, Scrips offers competitive fees, charging only a small percentage from completed transactions, making it a cost-effective solution for traders. The platform's transparency is bolstered by conducting all transactions on-chain, providing a clear and trustworthy record of trades. Additionally, Scrips introduces customizable vesting schedules, allowing users to responsibly manage the sale of large token allocations over specified periods, thereby accommodating diverse trading needs and strategies.
Scrips supports diverse trading workflows to cater to various user needs. The process is detailed below:
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Order Mode and Chain:
- Users begin by selecting the order mode. The three available modes are:
- Presale Allocation: Users can trade presale allocations they have purchased from supporting crypto launchpad partners.
- Liquid Sale: Users can sell their liquid tokens directly on the platform.
- Vesting Sale: Users can sell their tokens according to a custom vesting schedule.
- The next step involves selecting the desired blockchain network. At launch, only the Base chain will be supported, but additional chains will be integrated over time.
- Users begin by selecting the order mode. The three available modes are:
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Order Type:
- Users can create either buy or sell offers.
- They may also choose to include a collateral token (e.g., USDC, ETH, or USDT) to demonstrate the seriousness of their offer.
- The fill type must be specified, either as partial or single:
- Partial Fill: Allows the order to be partially fulfilled if the full amount cannot be met.
- Single Fill: Requires the order to be fully filled in one transaction.
- Additional parameters include:
- Price Per Token: The price at which the user wishes to buy or sell the token.
- Total Amount: The total quantity of tokens involved in the transaction.
- Start and End Time: The timeframe within which the order is valid and considered active. Orders not fulfilled within this timeframe will be considered expired.
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Order Summary:
- Users review all the details of their order in the summary section before finalizing.
- The summary includes all parameters set in the previous steps, providing a clear overview of the transaction.
- Once confirmed, users proceed to the payment processing workflow where the order is submitted and becomes visible on the platform for other users to interact with.
This comprehensive and flexible workflow ensures that users can tailor their trading strategies to meet their specific needs and market conditions.
The business model of Scrips is designed to generate revenue while providing value to its users. Revenue is primarily derived from transaction fees, which are competitively structured to encourage platform adoption.
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Order Closing Fee: A 1% fee is incurred when a user-created buy or sell order is closed by the creator without finalizing. This fee structure incentivizes users to complete their transactions while providing a modest revenue stream for the platform.
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Order Settlement Fee: A 2% fee is charged upon the finalization of an order. This fee reflects the value of a successfully completed transaction, ensuring that Scrips benefits from facilitating trades.
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Order Cancellation Fee: A 1% fee is applied when an order is canceled, discouraging frivolous or speculative order creation and ensuring that the platform remains efficient and reliable.
By implementing a fee structure that charges for closing, settling, and canceling orders, Scrips ensures a balanced approach that maintains platform sustainability while encouraging active and serious trading among its users. This model provides a clear and fair revenue stream, aligning the platform's interests with those of its users.
Example Revenue Generation: Assuming a monthly transaction volume of $10 million, Scrips could potentially generate significant revenue:
- Closing Fees: If 10% of orders are closed without finalizing, resulting in $1 million in order volume, the closing fee revenue would be $10,000.
- Settlement Fees: If 80% of orders are settled, resulting in $8 million in order volume, the settlement fee revenue would be $160,000.
- Cancellation Fees: If 10% of orders are canceled, resulting in $1 million in order volume, the cancellation fee revenue would be $10,000.
Total monthly revenue could be approximately $180,000 from $10 million in transaction volume, illustrating the platform's potential for substantial profitability as it scales.
$SCRIP Token: The Scrips platform introduces $SCRIP, an innovative ERC404 token that combines ERC20 fungible and ERC721 non-fungible token features within a single contract. This hybrid design provides versatility and value to token holders.
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Utility: $SCRIP serves as the backbone of the Scrips ecosystem, facilitating various platform functions and incentivizing user participation. The token will be central to accessing premium features, lower fees, and participating in governance decisions.
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Minting: A specific amount of $SCRIP ERC20 tokens will be required to mint a $SCRIP NFT. For example, 10,000 $SCRIP ERC20 tokens will automatically generate 1 $SCRIP NFT. This minting process adds an element of gamification and value creation to the tokenomics model, encouraging users to accumulate and hold $SCRIP tokens.
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Revenue Sharing: SCRIP NFT holders will share in the platform's revenue, providing a tangible benefit to holding and using $SCRIP tokens. This revenue sharing mechanism aligns the interests of the platform with those of its users, fostering a collaborative and mutually beneficial ecosystem.
Token Allocation (1M Total Supply):
- Partnerships: 20% (200,000 tokens) allocated to strategic partnerships to enhance platform integrations and growth.
- Team: 15% (150,000 tokens) allocated to the team, with a vesting schedule to ensure long-term commitment.
- Private Sale: 25% (250,000 tokens) allocated for private sale to raise initial capital and fund development.
- Marketing: 15% (150,000 tokens) allocated for marketing efforts to drive platform adoption and brand awareness.
- Incentives: 15% (150,000 tokens) allocated for user incentives, including staking rewards and referral bonuses.
- Liquidity: 10% (100,000 tokens) allocated to ensure liquidity on exchanges and facilitate smooth trading.
This allocation ensures that the platform has the resources necessary for growth, development, and user engagement while maintaining a fair distribution of tokens.
Staking Mechanism: Scrips offers a robust staking mechanism to reward users for their participation and loyalty.
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Revenue Sharing: Fifty percent (50%) of the platform fees collected are distributed to $SCRIP stakers, providing a steady income stream for those who commit their tokens to the platform. This approach ensures that the platform's success directly benefits its most loyal users.
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Staked Derivative Token: When
users stake $SCRIP, they receive $stSCRIP, a staked derivative token that entitles them to a share of the revenue proportional to their holdings. This derivative token system ensures that stakers benefit directly from the platform's success and provides liquidity to stakers who wish to trade their staked position.
- Incentives: Staking $SCRIP provides ongoing passive income from the platform’s revenue, incentivizing long-term commitment and active participation in the Scrips ecosystem. Stakers are motivated to maintain their positions, knowing they will benefit from the platform's growth and activity.
This staking mechanism not only provides financial incentives but also promotes a stable and committed user base, which is essential for the long-term success and sustainability of the platform.
It is important to note that the $SCRIP ERC721 (NFT) tokens must be staked, not the $SCRIP ERC20 versions. This requirement ensures that stakers are fully vested in the platform's success and have a tangible stake in its future growth.
Referral Program: The Scrips referral program is designed to reward community members for promoting and sharing the platform's unique benefits.
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User Benefits: New users accessing Scrips via a referral link receive trading discounts, enhancing their trading experience and encouraging platform adoption. This approach makes it easier for new users to engage with the platform and realize its benefits.
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Referrer Rewards: Referrers earn rebates from transaction fees, providing a continuous income stream based on the trading activity of their referees. This structure rewards active promotion and helps grow the Scrips user base. Referrers benefit from ongoing engagement, creating a mutually beneficial relationship between the platform and its promoters.
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Referral Tiers: The program includes three tiers of referrer rewards:
- Tier 1: Referrers receive 2% of fees from referees once $100K+ in volume is reached.
- Tier 2: Referrers receive 5% of fees from referees once $250K+ in volume is reached.
- Tier 3: Referrers receive 10% of fees from referees once $500K+ in volume is reached.
This tiered structure ensures that referrers are adequately rewarded for their efforts in promoting the platform and contributing to its growth. The escalating rewards motivate referrers to bring higher volumes to the platform, aligning their success with that of Scrips.
Scrips is set to revolutionize the OTC trading space for small-cap cryptocurrencies and presale allocations by providing a secure, transparent, and user-friendly platform. By leveraging smart contract technology, competitive fee structures, and a comprehensive feature set, Scrips addresses the critical issues faced by existing OTC desks. The introduction of the $SCRIP token, along with innovative staking and referral programs, ensures that users are incentivized to participate actively and benefit from the platform’s success. Scrips aims to become the go-to platform for secure, efficient, and flexible OTC trading in the cryptocurrency space.
This litepaper provides an in-depth overview of the Scrips platform, detailing its unique features, business model, and the benefits of its native $SCRIP token.