SaucerSwap, a pioneer decentralized exchange (DEX) on Hedera, and HeadStarter, an IDO launchpad, are partnering to formalize a process that will see them whitelist projects under Project Sentinel.
HeadStarter and SaucerSwap, the press release went on to reveal, are members of the Hashgraph DeFi Alliance (HDA). They are conceiving Project Sentinel to weed out low-quality projects and, most importantly, weed out potential scams that might rug pull investors, leading to loss of funds and reputational damage.
Under Project Sentinel, the IDO launchpad will create a series of questions to “examine various aspects of a project”. HeadStarter will require projects wishing for their tokens to be whitelisted to submit answers pertaining, among other aspects of their projects, tokenomics, and their overall business model. Other pertinent questions will be related to project security, smart contract auditing, token utility, and documentation.
While smart contracts have opened up new opportunities for projects, reducing barriers to entry, and exciting trading models released to boost token liquidity, there has been a prevalence of nefarious agents releasing low-quality projects without utility. The lack of checks, coupled with increasing adoption, means that new and experienced users may fall prey to malicious users whose interest is in ripping off community members. By late 2021, DeFi lost upwards of $12 billion, according to records to various exploits, including rug pulls and smart contract flaws. In all these instances, users could have been protected if a procedure had been in place to guard the community’s interests.
The whitelisting process and lists of questions are designed to be as “objective as possible” and all-inclusive. As part of the qualification criteria, projects must submit solid evidence to support their answers. Once done, HeadStarter will apply its scoring methodology and generate a report that will be published on the Project Sentinel website.
A project that receives a score above the required minimum value will be considered for whitelisting. Afterward, Planck Epoch Collectibles holders will vote, determining whether the project’s token should be available for trading on the DEX.
As BTC-Pulse reported earlier, Slime World, had over 100k players.