Knoknok Partners With ApeSwap and 01X For Exclusive KKC Token Launch

ApeSwap Combines New Launch Bonds, Reserve Bonds, and V3 Liquidity Mechanics to Create Sustainable Liquidity and Runway For Knoknok

ApeSwap is excited to announce a partnership with Knoknok for a revolutionary token launch strategy that combines several brand new products: Launch Bonds, Reserve Bonds, and V3 liquidity pools. Supported by the guidance of the tokenomics experts at 01X, this strategy is the culmination of months of work to create and test novel ways of ensuring not only a successful launch of Knoknok’s KKC token, but also sustainable liquidity for the token as it matures.

About Knoknok

Knoknok is a cutting-edge SocialFi and GameFi mobile platform where users can build their own web3 networks, trade NFTs, and indulge in a vibrant social experience. Knoknok provides a thrilling space for chat rooms, live broadcasting, and interactive play, all while earning KKC tokens, the core governance token of the Knoknok ecosystem. Knoknok’s ultimate goal is to empower everyone to build their own web3 social network on their captivating mobile application, paving a path to becoming the largest web3 social community in the world.

Initially launched in 2020 as a web2 platform, Knoknok has garnered an impressive base of over 1,500,000 users across Southeast Asia and Europe. As the leading social entertainment platform in Southeast Asia, Knoknok generates approximately $1.8 million in revenue per month. Recognizing the potential for growth, Knoknok began its transition to web3 in late 2021, incorporating its KKC utility token and NFTs into its social gaming landscape.

Knoknok’s earnings mechanism is ingeniously designed, featuring two main components: Social & Earn and Win & Earn.

Social & Earn: Users can enjoy engaging features such as friend matching, live broadcasting, and multi-person voice chat rooms, allowing them to forge connections and grow their web3 social network. Party NFTs, Mic NFTs, and KKC tokens work together to enhance user experiences and revenue generation on the platform. Holding an NFT enables users to earn token rewards through actions like content creation and live broadcasting.

Win & Earn: Boasting five casual social games, Knoknok allows users to have fun and earn tokens while playing. The platform also offers 1 vs. 1 duels and tournaments, providing players with the opportunity to win huge prize pools of pledged tokens.

ApeSwap was introduced to Knoknok through a top tier crypto fund in January, and since then contributors from both projects have been working together to prepare for the launch of Knoknok’s token, KKC. The KKC token will be used for tipping and to purchase advertising space on the Knoknok platform.

About 01X

01X is a consulting firm that specializes in the modeling and design of sustainable token economic systems for web3. 01X takes a much different approach to tokenomics than other consulting firms in the market, taking the user error out of the equation by automating emissions and inflation based on fundamental utility. ApeSwap identified 01X as the perfect partner to help coordinate the tokenomics of the Knoknok launch and provide valuable guidance on how best to set the token up for success.

A New Approach to Token Launches

Token launches have come in all shapes and sizes over the course of the history of crypto. From ICOs, to IDOs, to IFOs, the general approach to bringing a token to market has generally remained the same: sell tokens publicly to raise more funds and distribute the token to an existing community, create a limited liquidity pool with some of those funds, release a large amount of tokens onto the market via airdrops, marketing campaigns, and renting temporary liquidity, and hope that the token price appreciates. Projects have little understanding of the consequences of reckless token emissions, much less simple supply and demand economics.

ApeSwap has created a novel, three-pronged approach to token launches that flips this unsustainable model, building sustainable liquidity and aggressively controlling initial emissions from the outset. The products ApeSwap leverages for this approach include Launch Bonds, Reserve Bonds, and V3 liquidity pools.

What are Launch Bonds?

Over the course of the past year, ApeSwap has created a massively successful sustainable liquidity product in the form of Liquidity Bonds, helping more than 35 crypto projects create over $3.5M in protocol-owned liquidity, including $1M in POL owned by ApeSwap itself.

Launch Bonds are essentially Liquidity Bonds, but for brand new projects and tokens. Here’s how they work:

1. A project sets aside a certain amount of tokens to sell to users in exchange for UniV2 style LPs
2. Users exchange their LPs for tokens at a dynamic discount relative to market price
3. The discounted tokens are wrapped up and placed inside a vesting NFT (i.e., a Launch Bond NFT)
4. The Launch Bond vests the discounted tokens to the users linearly over a 60 day period
5. The LPs sold by the user to purchase the Launch Bond NFT are transferred to a locking contract that is owned by the project and locked for a mandatory minimum amount of time to ensure long-term access to the token (in Knoknok’s case, six months from April 28th)

ApeSwap is excited to introduce its first-ever Launch Bond with Knoknok, thanks in no small part to detailed models and advice from 01X.

Knoknok Launch Bond Details

Knoknok is aiming to generate $1.5M of liquidity over the course of the next six months through the sale of Launch Bonds. The project has earmarked 100,000,000 KKC tokens for Launch Bonds, 50,000,000 of which will be available at launch. The amount of tokens used will be dictated by demand for the Bonds and the price of the token, and ApeSwap will use the remaining 50,000,000 tokens to top up the Bonds as they sell out. Knoknok Launch Bonds will vest over a 60 day period.

What are Reserve Bonds?

Given the success of Liquidity Bonds, ApeSwap has also looked at other ways to implement the EIP-5725 standard in order to provide novel treasury diversification solutions to crypto projects. Reserve Bonds are a new type of ApeSwap Bond that work similar to Liquidity Bonds, but instead of selling discounted tokens that vest over time in exchange for LP tokens, projects sell their discounted tokens in exchange for “hard assets” like stablecoins or “blue chip tokens” such as BTC or ETH. This allows projects to diversify by rebalancing the proportion of their own native token held in the treasury relative to the amount of hard assets they hold, helping to stabilize the overall value of the treasury.

Knoknok Reserve Bond Details

Knoknok is aiming to generate $400k of stablecoins over the course of three months through the sale of Reserve Bonds. The project has earmarked 25,000,000 KKC tokens for Reserve Bonds. Initially, the first Reserve Bond will have $100k worth of tokens available at the launch price of $0.015, and ApeSwap will assess the demand after these tokens are sold, and may create another Reserve Bond in order to acquire the capital that Knoknok requires. Knoknok Reserve Bonds will vest over a 60 day period.

What are V3 Liquidity Pools?

The third aspect of the novel token launch strategy that ApeSwap is implementing with Knoknok is V3 liquidity pools. ApeSwap recently launched V3 liquidity capabilities, which enable liquidity providers to “concentrate” their liquidity positions over a certain relative price range between the two tokens that make up the liquidity.

ApeSwap can leverage this capability to gradually distribute newly launched tokens to the open market by setting up a cascading series of V3 liquidity pools that only become active at certain prices. In conjunction with Launch Bonds and Reserve Bonds, these pools will allow tokens to be available for purchase depending on real-time market demand, allowing ApeSwap and Knoknok to dynamically capitalize on the initial demand and price discovery.

Knoknok V3 Liquidity Pool Details

There will be five V3 liquidity pools set up at increasing price boundaries. Until the price of the KKC token reaches the lower bound of a certain pool, the tokens within that pool are not available for purchase — in other words, they are withheld from circulation, and do not count towards circulating supply.

To reiterate, the purpose of these pools is to have tokens available for purchase depending on market demand in real time. This liquidity will also serve as “liquidity of last resort”, and will stay in these liquidity pools until the token has gone through price discovery and eventually stabilized. These pools will not impact the liquidity health of the project.

Knoknok Launch Summary

To summarize ApeSwap’s launch strategy for Knoknok:

1. Launch Bonds build sustainable liquidity by raising LP tokens in exchange for discounting KKC tokens.
2. Reserve Bonds build runway for Knoknok by raising stablecoins and blue chip tokens for use in operational and growth expenditures.
3. V3 Liquidity Pools allow Knoknok to capitalize on real time market demand as the token goes through price discovery in the first three months, allowing tokens to be distributed into or reclaimed from the market depending on market forces.

Knoknok Launch Timeline

ApeSwap, 01X, and Knoknok have all worked together in order to prepare for a successful launch of the KKC token.

The launch of the KKC token, Knoknok Launch Bonds, and Knoknok Reserve Bonds all go live on April 28th at 14:00 UTC.

The initial V3 liquidity pool will be active immediately, and additional pools will become accessible as the KKC token price reaches the lower bounds of each pool. ApeSwap has a complete embargo on token emissions for the first three months after the launch, meaning that the ONLY place to purchase KKC tokens will be on ApeSwap. All other tokens will be fully vested on chain using the EIP-5725 standard, and will have at least a three month cliff. This allows ApeSwap and Knoknok to aggressively control the inflation while the KKC token enters the market.

How to Get Involved

The KKC token will be available through two of ApeSwap’s features: the ApeSwap DEX, via ApeSwap Bonds. Users should check to see if there is bond capacity available to purchase before purchasing off the open market.

ApeSwap will publish a detailed how-to guide for purchasing Knoknok Launch Bonds and Reserve Bonds on April 28th. Stay tuned to the ApeSwap social channels for more information. A Launch Bonds and Reserve Bonds walkthrough will also available in the ApeSwap documentation available prior to the launch on April 28th.

Next Steps

Since token launches have been largely unsuccessful during the macro bear market, there is a large backlog of pre-token generation event projects. ApeSwap has seen increased interest from projects, incubators, venture capital firms, and launchpads in novel token launch solutions as fully developed projects have been stuck on the sidelines in recent months.

ApeSwap already has its second partner ready to implement this new token launch strategy: Monkey Empire is the next project in the pipeline! Stay tuned for more updates coming soon.

Are you interested in learning more about how ApeSwap Bonds can benefit your crypto project? Fill out an ApeSwap Partnership Application.

Questions?

Users and projects with questions about Launch Bonds, Reserve Bonds, or V3 liquidity pools are encouraged to check out the ApeSwap Telegram or Discord. Users with questions about Knoknok and the KKC token can visit the Knoknok Telegram or Discord.

Disclaimers

Please review apeswap.click/disclaimers for more information.