Original Author: Shenchao TechFlow
Reprinted from: Daisy, Mars Finance
Launchpad competition is becoming increasingly fierce, but Smart.fun, supported by Ora Protocol, has recently attracted attention due to the launch of a series of innovative features.
Launchpad has undoubtedly become a red sea market:
Taking the most competitive Solana ecosystem as an example, there are already 40+ homogeneous Launchpad platforms.
But the market is still rushing to Launchpad, because:
Launchpad has the most direct profit-making logic: platform pumping. Whether it is massive start-up or high-frequency transactions, Launchpad can obtain huge returns from it. According to DefiLlama data, on January 23, 2025, Pump.fun achieved a daily revenue peak of 7.07 million US dollars, and the cumulative revenue since its launch in January 2024 has exceeded 700 million US dollars.
And Launchpad new projects are not lacking in opportunities to stand out: Income comes from asset issuers and traders. If new projects can achieve lower thresholds, better issuance mechanisms, more efficient capital efficiency, safer risk management, and more attractive ecological incentives, attracting more users to issue and trade assets based on the platform will become the next protagonist in this 'coin issuance rights' battle.
So, based on the ORA ecosystem, which has successful products in oracle, AI, and asset issuance fields, what are Smart.fun's unique competitive advantages in the Launchpad melee?
Fair, Fun, and Shortable
Fair, Fun, and Shortable
The copy on the Smart.fun official website seems to be the most direct answer from the Smart.fun official team to this question.
Currently, Smart.fun has launched the Trend section, using AI to drive hot spot aggregation and rapid tokenization, and providing zero creation fees and other functions, bringing users a new coin issuance and trading experience.
In addition to fairness and fun, the unique short selling mechanism has also become the biggest inducement for many people to explore Smart.fun.
AI-Driven Trend Capture, Content Generation and One-Click Launch
As a Launchpad, asset issuance is its core function. Smart.fun uses AI as its engine to bring an excellent experience of real-time capture of global trend hot spots and one-click launch of high-quality assets.
Basic one-click launch: Start your creativity with zero barriers
On Smart.fun, everyone can easily issue assets within one minute:
Users only need to click the 'Create Coin' button to upload materials, including image materials ((jpeg, png, webp, gif, svg, etc.)) and video materials (mp4), fill in the basic information such as the token name and introduction, and they can complete the release with one click. Everyone participates equally, allowing asset issuance to truly enter mass entertainment.
Intelligent Content Generation: AI Helps Your Meme Find the Right Angle
A successful Meme needs precise marketing expression. In the face of hot spots, when many people are still thinking about what kind of token name and introduction can quickly express the asset's spiritual core, Smart.fun introduces AI to undertake content generation work, so that users no longer scratch their heads.
In 'Launch By URL' mode, users only need to copy and paste any valuable hot news link, and Smart.fun's powerful AI function will automatically analyze the content and generate multiple versions of personalized asset schemes. Users only need to select a favorite scheme or fine-tune based on AI content to complete the release with one click.
TrendFi Function: Real-Time Capture of Global Hot Spots, Achieving Viral Spread One Step Ahead
After lowering the issuance threshold, in the current attention economy, asset issuers need more efficient hot spot discovery and trend capture tools. Smart.fun's AI-driven TrendFi function is like a 'hot spot radar' covering global multimedia platforms.
In the currently launched Trends page, users can not only browse hot news through the two sub-sections of 'Hot X' and 'Global News,' and buy/sell related concept Memes that have been issued with one click, but also quickly issue coins based on these trend contents with one click.
In the Hot X list, the left side is X platform hot news, and the right side is related concept projects. If users think that a certain hot post can derive more interesting tokens, they can directly click the LOGO on the right side of the information to initiate creation.
On the Global News page, click the Launch Coin button below the news information, and AI will automatically generate multiple versions of asset issuance plans based on the information content.
In the future, Smart.fun will quickly integrate TikTok and IP hot spots to further help users seize hot spot opportunities in a highly competitive market.
0 Creation Fee, 0 Handling Fee
To further encourage creation, the Smart.fun platform currently has no Creation Fee, and users trading with $ORA tokens in the internal market stage are exempt from handling fees, which reduces asset issuance costs and operational thresholds to a greater extent while catalyzing further prosperity of the ecosystem.
The next popular Meme may originate from the user's current 'one-click launch.'
$ORA Liquidity Incentive Driven: Make it easy for assets to 'graduate'
The ever-decreasing threshold for asset issuance has brought about the emergence of a large number of projects. The market is mixed, and the further fragmentation of attention has caused most projects to die before public trading. Pump.fun's 'graduation rate' of less than 1% fully illustrates this point.
How to obtain sufficient liquidity support in the initial start-up phase is the first major difficulty that many projects need to overcome.
Smart.fun cleverly resolves this pain point by deeply binding the new token economic model of the ORA ecosystem, borrowing $ORA liquidity incentives to bring sustainable development momentum to the project.
As a native token, $ORA is the core value carrier of the ORA ecosystem;
According to the description in the ORA white paper, in addition to $ORA, other token assets issued in the ORA ecosystem are called Neuron. That is to say, Smart.fun is built based on ORA, so the assets issued based on Smart.fun are Neuron.
The liquidity pool formed by pairing $ORA tokens and Neuron tokens is called Axon.
In the new $ORA token economic model, 11% of the $ORA tokens have been issued and are in active circulation, and the remaining 89% will be fully allocated to liquidity mining and gradually released.
Each $ORA + Neuron liquidity pool (i.e. Axon) will receive $ORA reward distribution according to the proportion of the pool's liquidity to the total liquidity and the amount of usage, that is, the higher the liquidity of Axon, the higher the $ORA reward distribution that can be obtained. Users can participate in $ORA mining to obtain additional income by adding liquidity to Axon.
The threshold for receiving $ORA rewards is 50,000 $ORA (which is also the Smart.fun graduation threshold).
This strong liquidity binding mechanism gives Smart.fun a constantly strengthening liquidity snowball effect:
ORA rewards attract users to contribute liquidity → Higher liquidity brings higher ORA rewards → Higher $ORA rewards attract more users to contribute liquidity → Forming a positive cycle and injecting a continuous stream of liquidity power into token assets.
Once the project reaches the 50,000 $ORA threshold and successfully graduates, Smart.fun will unlock the Buy Back & Burn function: Any market participant can buy back Meme coins from the open market and destroy them permanently, reducing the circulating supply, increasing the scarcity and potential value of the remaining tokens, and further injecting long-term momentum into the project.
Borrowing and Shorting Mechanism: Efficient Risk Hedging and High-Yield Leverage
In the Meme game rules, surges and plunges are commonplace.
When a crash comes, can you only watch your assets shrink?
Smart.fun breaks this shackle by using borrowing and shorting functions to transform the market into a 'two-way sword,' allowing users to capture high yields even in a declining market.
Currently, the borrowing and shorting mechanism is open to projects that have transitioned from the internal market stage to public trading. This function is anchored in value with $ORA. Specifically:
Users first need to pledge $ORA as collateral to borrow the target Meme coin. The borrowing rate depends on the health factor (Health Factor) data. According to calculations, the current borrowing ratio of the platform is about 50%, that is, pledging 100 $ORA tokens can borrow Meme assets worth about 50 $ORA.
After holding the borrowed Meme coin assets, users can use Smart.fun's AI-based trend hot spot capture capabilities to more accurately grasp market trends, and combine their own judgment on market conditions to choose to sell the borrowed Meme coins: In general, selling an exit is considered opening a short position, because this means that the holder believes that the asset will fall or have less room for growth in the future.
After selling, users continue to monitor market fluctuations. When the price falls, users can buy back the same number of Meme coins at a lower price to repay the platform, and the difference is the profit.
Profit = ORA obtained when opening a position - ORA repaid when closing a position
We can understand the entire logic more clearly through the following case:
Xiao Ming borrowed 1000 Meme coins and received 100 $ORA when selling;
When the coin price falls by 20%, Xiao Ming only needs 80 $ORA to buy back 1000 Meme coins;
Xiao Ming earns 20 $ORA in profit.
Of course, in the high-volatility and high-risk Meme market, users face higher liquidation risks. Smart.fun chooses to use the health factor (Health Factor) as a risk control 'iron gate':
Health Factor = (Collateral Value / Debt Value) × 100%
As a measure of the safety margin between collateral and debt, the HF needs to be maintained above 100% to ensure the safety of the position. Once the debt value reaches 90% of the collateral (HF < 100%), the system's automatic liquidation will be triggered, and users may lose some or all of their collateral.
Let's explain the liquidation with another example:
Xiao Ming pledges 100 $ORA and borrows 1000 Meme coins worth 50 $ORA (borrowing rate is 50%). If the price of Meme coins continues to rise, the value of 1000 Meme coins as debt is close to 90% of the value of the collateral, and the health factor will fall below 100%. At this time, the position is at risk of being liquidated.
Smart.fun breaks the Meme's single 'chasing the rise' investment model. The introduction of the borrowing and shorting mechanism not only increases the depth of market game, so that users can also invest and operate to obtain income in the face of a falling market, but also allows the Meme ecosystem to show the potential to evolve into a more mature DeFi model.
Ecological Synergy: The Mutual Achievement of ORA and Smart.fun
Just as Pump.Fun's success is inseparable from Solana's underlying technology support and ecological resource support, and Pump.Fun's success in turn becomes Solana's traffic engine, the Web3 ecosystem is always happy to see this mutually successful closed loop.
As the next key project in the ORA ecosystem with the potential to be successful, Smart.fun aims to become the ORA ecosystem version of Pump.Fun, and the two-way feedback ecological symbiosis engine between Pump.Fun and Solana is also continuing between Smart.fun and ORA.
Backed by the ORA ecosystem, Smart.fun enjoys a series of support from the ORA ecosystem:
From the perspective of ecological incentives, higher liquidity can obtain more $ORA token rewards, providing native liquidity support for projects issued based on Smart.fun, and helping more projects graduate to the public trading market.
Technically, as a project that has been deeply involved in the field of AI since its inception in 2021, the technological accumulation of the ORA ecosystem provides a solid backing for Smart.fun's leap from 'Fun' to 'Smart.'
The ORA ecosystem has a number of well-known technical research results and AI products: The game theory-based, economically efficient machine learning framework opML aims to greatly reduce the operating and management costs of on-chain AI; the hybrid model opp/ai tailored for on-chain artificial intelligence is committed to achieving private and efficient on-chain AI; the verifiable decentralized AI oracle OAO brings a cornerstone of trust to on-chain AI; the initial model issuance IMO, as a solution for AI model tokenization, has spawned a number of popular products including OpenLM… A series of technological innovations and product accumulations directly empower Smart.fun's AI functions, providing a better user experience in trend capture, content generation and intelligent trading.
In addition, ORA, as a large ecosystem, provides resource feedback to the Smart.fun small ecosystem in terms of users, developers, and community exposure, which enables Smart.fun to reach a wider audience.
For ORA, the rich assets created by Smart.fun will drive ecological demand and consolidate ORA's value:
As a Launchpad, Smart.fun enriches the asset categories of the ORA ecosystem and injects more innovative vitality into the ecosystem's prosperity with the support of more projects, more users, and more funds.
At the same time, each token issued based on Smart.fun will generate $ORA demand with the goal of graduation, and as more and more assets are issued based on Smart.fun, it will create huge demand for $ORA tokens, further providing value support for $ORA.
In this way: Project creators issue assets on Smart.fun, $ORA incentives attract more users to provide liquidity, prompting more Smart.fun projects to graduate to public trading, coupled with clever borrowing and shorting function innovation, increasing the possibility of Smart.fun giving birth to popular projects;
Popular projects attract new traffic to enter, more people choose to issue assets based on Smart.fun, bringing greater $ORA demand and consolidating the $ORA value base;
More valuable $ORA attracts more users to provide liquidity and earn $ORA revenue, prompting Smart.fun projects to grow more healthily and quickly. In this cycle, the ecosystem continues to grow and expand.
The ecological synergy between ORA and Smart.fun is not a simple superposition, but a multiplier effect. The powerful flywheel built by the mutual achievement of the two brings greater possibilities for the exponential expansion of the ecosystem.
Conclusion
After Pump.fun proved the huge potential of the Launchpad business model, countless homogeneous competing products emerged, aiming to replicate the successful formula of 'low threshold coin issuance + high-frequency transaction pumping,' and in the current market situation where leading projects are constantly optimizing and new projects are pouring in, it is not easy to win a place in the Launchpad competition, but Smart.fun has created a more imaginative evolutionary path:
AI empowerment upgrades asset issuance from 'chasing hot spots' to 'creating hot spots,' allowing creators to capture market sentiment more accurately;
Liquidity incentives solve the industry pain point of 99% of projects 'dying at birth,' providing a sustainable development path for high-quality projects;
The short selling mechanism breaks the Meme coin's 'only long' unidirectional game and introduces a more mature risk hedging tool for the market.
Of course, if Smart.fun wants to truly achieve success, it may also need to make better use of the AI advantages of the ORA ecosystem, better play the differentiated advantages of AI in lowering thresholds, market monitoring, and content generation, and at the same time, for the liquidation risk under the borrowing and shorting mechanism, Smart.fun will need to continuously improve to achieve more refined control in the future.
The encryption market's pursuit of asset issuance and liquidity efficiency never stops. Launchpad is a competition that never ends. As Smart.fun is about to aggregate more platform hot trend captures and become more sophisticated in DeFi trading functions, attracting more users and funds to enter, Smart.fun is committed to becoming an innovative variable in the Launchpad competitive landscape.
