What is a Cryptocurrency Launch Pool? A Complete Guide for Beginners

In the world of digital asset investing, there are several ways to acquire new project tokens. Among them, the “Launch Pool” system has garnered significant attention. This system allows users to stake multiple cryptocurrencies simultaneously to earn new project tokens for free, and it has been implemented on many trading platforms. Here, we will provide a detailed explanation of how the Launch Pool works and how to utilize it effectively.

Basic Functionality of Launch Pools: Staking Multiple Assets to Earn Rewards

Launch Pools enable users to stake various cryptocurrencies (such as MNT, USDT, USDC, project tokens, etc.) at the same time to earn new project tokens as rewards. The key feature is the flexibility to withdraw your staked tokens at any time.

Depending on the project, the supported assets for staking may differ. Additionally, the terms of use are regularly reviewed and improved to create a fairer and more transparent environment for users.

Access to Launch Pools requires meeting certain conditions. Only verified individual users can participate; corporate accounts and users from restricted countries or regions are not eligible. For example, users from countries within the EEA (European Economic Area) are prohibited from participating due to regulatory reasons.

Eligibility and Registration Process: Steps to Join a Launch Pool

Participating in a Launch Pool is straightforward. Visit the Launch Pool homepage, click “Register,” and select the desired project. After completing registration, proceed with staking to start earning tokens from that project.

Before joining, you must complete personal identity verification. If you haven’t verified your identity yet, do so through the verification page after logging in.

The system includes a “Warming Period,” allowing early staking. Tokens staked during this period are automatically applied when the Launch Pool officially starts and can be withdrawn at any time. Rewards from tokens staked during the Warming Period are limited to the duration of the Launch Pool.

Staking Limits and VIP Privileges

Not all users have the same staking limits. VIP members, new users, and newly promoted VIP users are granted higher staking caps. This is designed to provide a better experience for valued users.

New user benefits are valid for 7 days after account registration. If you participate in ongoing Launch Pool projects within this period, the benefits will continue until the project ends without expiration. For example, if a user registers on January 1 and the Launch Pool starts on January 6, even after 7 days have passed, the benefits remain active until the user manually refunds and restakes tokens.

For VIP upgrade users, a 30-day period from their first VIP status upgrade is provided during which the increased limits are active. If no active projects are ongoing during this period, the benefits automatically expire. However, once applied to a project, the VIP benefits continue until that project’s completion, even if VIP status changes.

Daily Yield Calculation: Snapshots and Methodology

Reward distribution in Launch Pools is calculated using a sophisticated snapshot system. The system takes a 1-minute snapshot at a random time each hour during the staking period, and the average staking amount for that day is calculated based on these snapshots. The random snapshot times are published daily after 12:00 UTC.

Your daily reward is automatically calculated based on your proportion of the average staking amount relative to the total staking across all participants. The formula is:

Personal Daily Reward = (Your average daily staking amount in the pool ÷ Total pool staking) × Daily reward pool

For example, if you start staking 1,000 USDT at 8:30 AM in the USDT pool, snapshots are taken at 20 minutes past each hour. The average staking amount for that day is the sum of all snapshots divided by 24. If you only stake for 15 hours, your average is calculated as “(staking hours × 1,000) / 24.”

Rewards are distributed to the funding account within a few hours after 12:00 UTC each day, based on the total average staking amounts. Note that there may be slight delays. Rewards are only paid out if they are worth at least $0.01.

You can view the snapshot results and actual daily random snapshot times in the “Staking Records” section under “Valid Average Staking Amount” the day after the snapshot ends. Selecting a specific date will show the exact snapshot time and results.

VIP Member Benefits: Staking Limits and APR Advantages

VIP users participating in Launch Pools enjoy several exclusive benefits. First, they can significantly increase their staking limits, allowing them to stake more funds and maximize participation. Details of staking limits are available on each Launch Pool event page.

Second, VIP users are offered higher APR (Annual Percentage Rate). Even staking the same amount yields higher rewards compared to non-VIP users. Specific APR differences are explained on each event’s landing page.

VIP-only benefits may vary per Launch Pool event. For the latest information, please check the respective event’s Launch Pool page.

Borrowing & Staking: Leveraged Strategies

For users seeking higher rewards, an advanced feature called “Borrow & Stake” is available. This allows borrowing tokens via crypto loans to leverage your staking position in the Launch Pool.

For example, with 3x leverage, you can borrow 300 USDT against your 100 USDT and stake a total of 400 USDT in the Launch Pool. If eligible, a borrowing option will appear on the staking interface.

Interest accrues hourly on borrowed amounts. Leverage up to 3x is supported, but the total borrowed amount cannot exceed the project’s staking limit. The maximum borrowable amount is calculated as:

Maximum Borrow = Principal × Leverage

Interest is calculated based on a variable rate, with a minimum hourly rate of 0.00000001 USDT. Borrowed amounts accrue interest from the moment of borrowing, with periods less than an hour rounded up to one hour.

Loan repayment does not require manual action. You can refund your staking and repay the loan at any time before the event ends without penalty. Interest is only charged for the time the loan remains active.

When returning the principal, the system first repays the interest and loan amount to the pool, then refunds the remaining principal to your funding account. Estimated interest, repayment amount, estimated principal return, and current loan balance are displayed on the interface.

If you hold a Launch Pool position until the end of the staking period, the loan is automatically settled—interest and principal are repaid, and remaining funds are returned to your account.

Note that loans within Launch Pools are subject to a special risk management mechanism different from standard liquidation. If unpaid interest exceeds 98% of the staking principal, the system automatically refunds the staking position and settles the interest. For example, if you staked a total of 400 USDT (100 USDT principal + 300 USDT borrowed) and your interest reaches 98 USDT, automatic repayment will be triggered.

FAQs: Unstaking and Operations

You can request a refund of your staked tokens at any time. The refunded tokens are automatically credited to your funding account. Refunds can be initiated from the “Staking Records” section.

Once the Launch Pool period ends, you cannot manually refund; your staking amount will be automatically refunded. Please note there may be slight delays.

Immediately after staking or refunding, the displayed amounts may not update instantly due to system processing, which typically completes within about 3 seconds.

Compound interest functionality is not supported at this time. Daily rewards are not automatically re-staked; to earn additional rewards, you must manually stake again in the Launch Pool. Be aware that refunding your stake affects your average staking amount and may reduce your rewards.

Your current staking amount can be checked in “Staking Records.” The displayed figure reflects the amount present in the pool at the time of viewing, which may differ from snapshot results.

Estimated APR is calculated based on the total tokens staked by all participants in the pool. The more tokens staked, the lower the estimated APR tends to be.

Eligibility and Management: Sub-Account Restrictions and Qualifications

Sub-accounts are not eligible to participate in Launch Pools. Only the main account can participate.

To ensure a fair environment, the risk management system monitors and filters data daily. If an ineligible user is identified, the system automatically refunds their staking and returns the funds to their funding account.

If you hold a borrowing position, the system will refund the principal and loan amount, settle interest, close the loan, and return the principal to your account. Details of automatic refunds are visible in the “Activity Log” under “Automatic Principal Refund (Ineligible User).”

The platform reserves the right to disqualify users engaging in activities such as mass account registration for bonus farming, illegal, fraudulent, or harmful activities.

Details related to loans (borrowed amount and interest) can be checked on the current Loan Pool history page. If you have not borrowed, loan details will not be displayed.

Launch Pool Referral Program: Earn Extra Rewards by Inviting Friends

During new Launch Pool events, clicking “Share” generates a referral link code. Friends who register for the Launch Pool project using this link/code during the event will be counted as your referrals.

If your referred friends participate during the event, you will receive additional rewards after the event ends. These rewards are airdropped to the bonus center and can be claimed from there. For detailed referral benefits, please see the event page.

Launch Pools offer a unique opportunity to access new crypto projects while earning additional rewards. You can adjust your staking amount based on your funds, withdraw freely at any time, and benefit from VIP perks and referral programs. It is recommended to start with an amount you understand and are comfortable with when participating.