Market Cap: PAD: ~$1 Million, TOAD: $ 4.4 Million
What is the ecosystem?
There are two core components of the Toad Network: Toad and its perpetual liquidity, and PadSwap’s mechanism of creating a coin with intrinsic value. We will start with Toad and its history and use case before I explain how it ties into PadSwap and how together they will take over the Decentralised Finance sector.
Toad went live with a presale at the beginning of March this year, its initial use case was as a yield farming token with one key differentiator – that being its liquidity pool and the mechanism built into that. One of the developers’ key goals was to make Toad rug pull proof from either developers or malicious whales, to achieve this the liquidity pool farm had all the dev’s initial liquidity tokens donated to it and a 10% tax on deposits and withdrawals. Of that 10%, 10% (1% of the deposit/withdrawal amount) is burnt and 90% (9% of amount) is returned to the dividend pool of the liquidity farm. This dividend pool is what makes up the yield of the farm as 1% of it is dripped to the farmers every day, this also means that when you farm the Toad Liquidity Farm you are earning Liquidity Tokens as a reward – ensuring the fair distribution of liquidity.
This means that if there is a large drawdown from the liquidity farm, then the yield will increase from both the bigger dividend pool and the reduced number of participants, thus incentivising more people to join the farm and provide liquidity. This means that the pool will never run out of rewards and therefore there will always be an incentive for users to provide liquidity for Toad.
So, I am sure you are asking, “That sounds great but there are plenty of pure yield tokens available already – is there any other utility to Toad?”. In short, yes there is, but first I need to explain PadSwap and how Toad will connect to that.
Max Supply: 200 Billion
Pre-Mint: 10 Billion
Permanently Locked Liquidity: 400,000 BUSD donated by Developer Team
Token Supply over Time, 0.13% drip per day
PadSwap is an Automated Market Maker, Yield Farming platform, and Staking Platform. Its core functionality will be like other Decentralised Exchanges in crypto where users can stake, farm, and swap in any manner that they like. Its core code for this was forked from Uniswap (V2) code due to its trusted functionality and security. Liquidity providers on PadSwap will receive 10% of the rewards pool per day dependant on pool stake and a Pad drip from unreleased tokens of 0.13% per day. Users swapping tokens on the exchange will pay a 0.3% transaction fee, of that 0.25 out of the 0.3 fee will go the farming reward pool and the remaining 0.05 will be used by the vault to purchase the backing tokens. This vault is what truly sets Pad apart from the competition.
The vault will take 16⅔% of every fee on PadSwap and store a set of adjustable tokens inside the vault, as volume on PadSwap increases the amount of value stored inside the vault will increase alongside it. The brilliant part of this is that if a user chooses to, they can burn their pad tokens and receive the proportionate amount of the tokens in the vault.
This means that if the market price of Pad falls below the value of the vault, then users can burn their Pad tokens, sell the tokens they receive, and make an instant arbitrage profit, in addition to this the supply of Pad tokens will be permanently decreased by the amount of burned tokens.
The current backing percentages of the vault is:
These percentages are changeable and new tokens can be added and old removed depending on changing market conditions, allowing Pad to adapt to whatever is in the future of Crypto currencies and Decentralised Finance. This brings us back to Toad and its use case.
Toad and Pad
Currently with its scarce token supply and difficulty to farm, Toad operates as a store of value with a yield return as well. In the near future Toad will also become the governance token of PAD where Toad holders will be able to vote on decisions to change the tokens in the farm as well as the allocation percentages – making users of the Toad/Pad ecosystem incentivised to find quality and innovative projects and bring them into the Pad ecosystem.
For example, if a project is looking to launch on PadSwap and passes the Toad communities criteria (satisfactory audit, use case, tokenomics, etc) then the dev team of the new project can choose to add initial liquidity tokens to the vault and be added to the vaults backing percentages. Thus, benefiting existing Pad/Toad users, the users of the new project, and the entire cryptocurrency universe by promoting quality and useful projects.
The Future of Toad and Pad
So lets talk about the future of Pad/Toad, in the very near future the selection of farms is going to expand from Toad only pairs to a variety of others. The obvious like BUSD/BNB and similar will be first, however the dev team is already in communication with around 12 projects, with 6 in later stage discussions to add liquidity providing to the network. This increase in volume has obvious implications considering what we covered about the vault earlier.
In addition to this pool expansion the websites will be going through upgrades, with improved educational tools and a shared design across both Toad and Pad.
In the medium future the dev team will be expanding the features of Pad to include things like savings accounts, access to DeFi index funds, and a reliable BSC NFT platform. In addition to these, the dev team sees the increased education of the general population as a key goal and are sponsoring a variety of games to help spread awareness.
The Dev team is also in late stage discussions with three Asian exchanges to list Toad, this is currently a topic of discussion in the project telegram as it will be a community decision, this will likely be concluded in the next few weeks.
My Take on the price action so far
Unlike the rest of this piece this is purely my take on what has happened so far with the price of Toad. From the chart (link on Toad Network website) you can see that Toad had an amazing run up from $10 to $100 over about a month (at its peak Toad had around a $14 million market cap), my belief is that this was possible due to strong commitment from initial holders and slowly growing interest from new adopters. Much like other cryptocurrencies we began to have issues from the 7th of May, and we have since drawn back down to around a $25 level.
My belief is that most of this drawdown has been caused by profit taking from initial adopters looking to secure their 60x to 100x profits – rather than any fundamental issues with the project in combination with the overall crypto weakness. Although it was certainly unpleasant, I believe that this was a healthy move as it allowed the distribution of high token count early investors to new adopters, my confidence in this is backed up by the fact that many other projects that have gone on to succeed had similar beginnings (HOGE from the 1st of March had a 57x gain followed by a 70% drawdown in the period of 9 days). So, although the price chart is certainly striking, I would encourage everyone to look at the potential of the network in the longer term and look at what the recent price action has meant in deeper terms. I can easily imagine this project achieving a $1 Billion+ market cap (180x price increase).
Developer Information and Community
The dev team is actively looking to expand but has currently managed to do an amazing amount of work in a short period of time. They are an anonymous team, while this may make some reluctant to invest they are unlikely to change that, you can see their reasoning for that decision here:
That said they cumulatively have a long history in crypto working on projects like Bancor, Matic, and Hoge. I understand that anonymous developers are a red flag for a lot of people but they have taken multiple measures that I think make them trustworthy, these include audits on all code prior to release, donation of initial liquidity tokens to liquidity pools (these tokens were fully self-funded in the case of PadSwap – an amount around four hundred thousand dollars), a constant presence in the community telegram, and the encouragement of FUD Friday where anyone can question or critique anything they like. If you still need further convincing, I encourage you to join the telegram (link at bottom) to see if any concerns you have can be answered.
The audits on PadSwap were completed prior to release so the developers could fix any issues, the full audit report is released and the project had no issues found. The auditing was done by Spade Audits, while it was the first audit by them as an audit only company – they were previously contract developers on projects where they fulfilled in house auditing roles in addition to smart contract development.
As always, I would encourage everyone to DYOR on any new project, so here are several links to get more information on the developers’ goals, the project, and the telegram group.
How to Buy
If you have all the information you need and want to get onboard, here are some basic instructions on how you can get Toad or Pad.
Make a Metamask or equivalent account if you do not already have one, plenty of tutorials online.
Acquire some BNB in that wallet (on the Binance Smart Chain), again plenty of tutorials online.
Head to PadSwap through the link above and it should take you straight to the exchange page.
Once there you can switch your BNB for any amount of Toad or Pad you would like, its core functionality is much like many other DEX’s you would have used before.
Get farming and enjoy the Toad lifestyle.
If you have any issues with any of these steps please join the telegram, everyone there will be happy to help.
If you have made it this far, thanks for reading. This is my first DD and summary of this type, so any feedback is appreciated. Again, if you have any questions with Toad and PadSwap it would be great if you could join us in the Telegram, the entire group is really welcoming and would love to respond to any questions you have whether its seeking help or FUD