Overview of the Gavel platform
Gavel is an on-chain token distribution and liquidity guidance platform aimed at addressing the pain points of traditional token issuance through completely transparent on-chain processes:
1 Avoid high fees from centralized exchanges (such as listing fees and liquidity fees exceeding 10%).
2 Prevent snipers (token purchase bots) and sandwich attacks (MEV arbitrage) to protect retail investors' interests.
3 Promote fair price discovery, optimize the token initial distribution mechanism.
Current issues in token issuance
Centralized exchange monopoly:
Project parties need to pay high fees, and the process is opaque.
Reliance on market makers may incur exorbitant service fees.
Risks of on-chain issuance:
Snipers: Use joint curves to buy tokens at low prices and resell them to retail investors for profit.
Sandwich attack: Bots extract retail funds through front-running and buyback transactions.
Gavel's solutions
1. Initial public offering (IPO)
On-chain transparent distribution: Support models such as Dutch auctions and first-come-first-served (FCFS) at fixed prices.
Closing price = Opening price: Ensure that the public sale price is consistent with the subsequent liquidity pool opening price, eliminating arbitrage opportunities.
2. Anti-sandwich AMM
Protect user transactions: Use AMM mechanisms to prevent sandwich attacks and avoid price manipulation.
Dynamic liquidity management: Gradually withdraw liquidity based on trading volume to avoid permanent locking losses.
3. Instant liquidity
Short-term liquidity support: provide liquidity only in the early stages of the token, gradually withdraw as trading volume increases.
Automated token destruction: Withdrawn liquidity funds are used for buybacks and token destruction to maintain a deflationary model.
IBRL testing token case
Total supply: 1 billion tokens, 70% distributed through 24-hour public sale, 30% injected into the liquidity pool.
Distribution mechanism
Users deposit SOL to receive tokens proportionally (e.g., deposit 1% of funds to receive 1% of tokens).
Remaining SOL paired with tokens injected into AMM to ensure no arbitrage loopholes.
Liquidity management:
Liquidity will be withdrawn at a fixed rate after 7 days, exchanging tokens and destroying them.
Remaining SOL will be gradually used for buyback and destruction to support token value.
Community views and controversies
Supporting party (B/D)
Revolutionizing traditional finance: Paving the way for Web2 companies' equity tokenization, optimizing financing fairness.
Technical advantages: Significant anti-sniping and anti-sandwich effects, superior to similar solutions on EVM chains (such as CowSwap).
Market potential: IBRL's market cap is underestimated, with strong short-term liquidity support (3M SOL buying pressure), targeting 100 million market cap.
Questioning party (C)
Testing token risk: IBRL is only a demonstration token with no actual empowerment, and there are few successful cases of historical testing tokens.
Technical redundancy: The anti-sandwich function is not original; there are similar solutions on EVM chains.
Official response
Platform value priority: The core of Gavel is to provide on-chain issuance tools for project parties, and platform success will drive token value.
Core conclusion
Gavel innovates through on-chain transparency, anti-MEV attacks, and dynamic liquidity management.
Attempt to disrupt traditional token issuance models and even provide infrastructure for future equity tokenization.
Short-term: The IBRL testing token demonstrates technical feasibility, and the liquidity mechanism supports market capitalization expectations.
Long-term: If Web2 companies are attracted, it may reconstruct the financing ecosystem and challenge the status of traditional exchanges like Nasdaq.