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Whitepaper
From time to time we observe how 2–3 coins skyrocket, pulling over all the liquidity of the market, taking it even from BTC or other fundamental assets. In 2021 that was the case for such cryptos, as ADA or SOL. But in fact, many projects suffer from a lack of liquidity. To sell or buy $ 20–30k worth of crypto from the top 50–100 Coinmarketcap without affecting the price can be a tough challenge. This is what we call a liquidity crisis.
In addition, many exchanges try or successfully fake their trading volumes in order to attract new traders to invest in “hype” coins. If an exchange is doing that, it cannot support a big market order of let’s say $100 thousand even if the declared daily trading volume of coin N is approx. $7 million because this would result in the price fall by 2–3 or even 7%. This means an investor who uses such a platform will receive 7% less than he could in case he’d chosen OTC tools.
Due to the oversaturation of the cryptocurrency market dozens of DEX exchanges, hundreds of projects, and thousands of coins invade the crypto space on a regular basis. At the same time, most of the capital and liquidity still revolve around a many top exchanges and a plenty coins.
This whitepaper gives a broad overview of OTC trading, crypto and DeFi market and MarsBase platform and explain how MarsBase can solve the existing problems. It will be useful to read for those who have not yet encountered OTC. Our OTC trading platform is created for retail investors as well as for whales and is ideal for them. MarsBase provides its users with the best OTC and DeFi trading conditions: we have discount prices on tokens of any capitalisation, the lowest fees, the widest range of token pairs and safe and anonymous deals. You will get an understanding of how to trade crypto and earn money on the OTC market with any budget.
Since 2016, the cryptocurrency trading volume on the CEX and later on the DEX has grown from $400 billion to $16,380 billion/year at the time of writing. About 35% of that amount goes through OTC deals. OTC trading accounted for about 5% in 2016 and grew to 35% which is almost 600%.
The Bitcoin, Ether and stable coins take about 70% of today's crypto market, which makes around $750 billion with a current market capitalization of 1.05 trillion. The remaining $300 billion is distributed among thousands of coins.
A centralized market consists mostly of large institutions such as Coinbase or huge liquidity providers - Centralized exchanges, such as Kraken OTC, Binance OTC, and so on. Those OTC services are taking a lot of volumes but it stays unavailable to the public (due to their high entrance barrier) with the monopolistic approach. On another side, a chaotic decentralized market with OTC managers, shady groups, and chats which are obviously not trustworthy due to the human factor and it is incredibly fragmented - this shows there is a retail demand for OTC.
Due to the fragmentation of the existing Defi market and the absence of the infrastructure which can gather the liquidity for high-volume deals of retail investors altogether, the following problems are arising:
- Large market caps don’t mean deep order books, the OTC market exists for top 10 cryptos and is gated-access.
- For many tokens with large market caps there is no liquidity and no repo possibilities for large buyers/sellers.
- Niche of unvested tokens and equity remains untapped.
- No one place aggregates OTC trading.
- There are high entry barriers to OTC for retail investors.
- There is no proper solution for trading vested assets.
The MarsBase team researched the liquidity of cryptocurrencies on exchanges which suggest insufficient liquidity and price impact are the biggest problems for entering, exiting or accumulating an asset.
Thus, in the current market, the investor has three options:
- 1.Hold an asset at a high price, have nothing but paper gains and wait for an increase in liquidity.
- 2.Sell into the market depth, lose money due to the price impact, and increase the risk of panic sales which will lead to an even greater drop in the asset price.
- 3.Wait for a long time and carefully sell the asset in small volumes with limit orders or on the market at different CEXes or DEXes.
All these options are inefficient from the point of view of the speed of capital turnover and, accordingly, profitability. Moreover, projects out of the Top 50 coins list do not arouse much interest in the crypto community. That is, they do not receive much external liquidity.
Despite all the shortcomings of the OTC market, the MarsBase project found a non-standard way out of each of the above situations.
MarsBase is the first decentralized OTC desk for DeFi assets. The platform is being developed since August 2021. We envision MarsBase as a perfect solution for organizing and forming the secondary OTC market for retail that allows both whales and relates to co-exist and concentrate the liquidity in one place.
Our primary goal is the creation of a marketplace with coins of medium and low capitalization. The number of available assets will exceed 1000 different blockchain tokens. We estimate that all transactions greater than $50k which are not suitable for large OTC desks will be traded on MarsBase. This way, in 3 years, we are going to take 10% of the trading volume with transactions of up to $50k and a potential income of $1.6 billion.
This will allow MarsBase to become the largest decentralized OTC cross-chain ecosystem in DeFi and stabilize the market, making it less risky and more profitable.
The MarsBase platform consists of several modules with unique features.
There are several P2P trading modes on the platform: Part, Best bid, and Garant.
A Part offer is a fractional deal. This means that using the Part mode, you can sell a large number of assets in parts, quickly and to a large number of people which open OTC market not only for whales but also for retail investors.
Part Dynamic Offers
Participants of the Dynamic offer (both the offermaker and the bidders) receive their assets immediately, i.e. at the time of making the transaction when you click on the button to place a bid. Such offers will be convenient for those who trade high and medium liquid assets without unnecessary risks. These offers are executed quickly, so that the price on the DEX or CEX exchanges does not have time to change much.
Part Static Offers
When participating in a Static offer, both the bidder and the offermaker receive their parts only after the transaction is completed in one of the following cases:
after the expiration of the transaction;
when closing a transaction by its creator manually;
upon reaching 100% of the volume of the transaction before the expiration of the transaction.
The Best bid mode is suitable if you want to evaluate the offer from different market participants (bidders) who are ready to buy your asset at the price you set. At the same time, they can offer you discounts or, conversely, prices above the market (premium). Once you receive several offers, you can choose the best one or reject all of them. The main thing to remember is that the offer is 100% closed by one bidder, and your task is to choose the best bid.
When to choose Best bid offer:
- you can’t choose the price;
- you are not sure about the demand;
- you have illiquid assets and can wait;
- the market is volatile;
- you want to have a garant deal with another party;
- you have no specific deadline for selling tokens.
Another option is to use Best bid as a garant deal. You agreed on the transaction with another party on a specific price, time and volume and you complete it on the platform the same way.
Advantages:
- Get away from Telegram guarantors and other escrow services
- Directly change the crypto without commissions
- Make sure the counterparty is reliable
- Eliminate the risk that the participant does not receive the desired asset
- Convenienty conduct transactions with a specific person
Use case:
You found somebody who would like to purchase your tokens on Telegram. You discussed the price and amount, but still don’t know each other, so there is no trust. Best bid auction is a perfect solution. You go to the platform, create an offer, and send the buyer the link. He is making a bid, telling you the number, and you accept the offer, and assets are automatically sent to your wallet. Your money is safe with our smart contracts.
MarsBase is forming a secondary market for vested allocation by creating ANYVEST protocol & Mars Raise launchpad. These tools allow you to buy, sell, split and accelerate your vested allocations. With ANYVEST protocol it is possible to exit the project at any time with minimal risk and maximum profit.
MarsRaise is an outstanding launchpad which allows holders of MarsBase tokens to turn project coins into NFT tokens and form a secondary market around that project using NFT vesting tools of our platform.
Moreover, we introduce a semi-automatic solution where MarsBase will act as a middleman. It will allow us to conduct transactions with vesting assets of third-party projects on our platform. In order to implement this functionality, we generate a unique wallet for each contract, and the investor uses our wallet by specifying it in the SAFT contract. In manual mode, the project confirms the terms of the transaction and the size of the allocation. Tokens received on the wallet are turned into NFTs and can be fragmented.
Now vesting assets can be manageable, i.e. it is possible to claim MBase tokens using NFT vMbase. Mars Locker allows the end user to lock and allocate tokens to a specific address and freeze them over a given period of time. The distribution is based on linear vesting periods, and tokens are issued block by block.
Projects can use it to provide teams, advisors or investors with a transparent token distribution process. Private investors can transfer tokens in vetsing to other investors if, for example, they still have a considerable share of tokens in their hands
Hold or split your Mbase NFT
As mentioned earlier, you can easily trade your vested MBase tokens. In case you still want to hold part of them we invented another unique MarsBase NFT feature. Every NFT owner can split their vesting assets into parts and perform different operations with each of them.
Speed up your vesting NFT
The MBase release schedule can be accelerated if you really want it so!
If you do not want to waste time you are able to reduce the vesting period for your assets by adding them to our Light Speed pool!
We made it possible for several reasons. On the one hand, we want to make MBase unlocks dynamic, so there will not be sharp price fluctuations. On the other hand, it will enable our users to manage their assets in the way they want it.
Earn more vesting NFT by slowing down vesting
While the Light Speed pool allows you to speed up the vesting period, we considered another Time Machine pool that would do the opposite thing.
If you want to increase your potential share of vested tokens, you can add the ones you have to the Time Machine pool. It works as some sort of staking: you just hold your vested MBase tokens and with time receive rewards for that.
For MarsBase this means we have more loyal holders and a more stable price and the unlock schedule gets flatter.
The MarsBase referral program is split into 2 segments: B2C and B2B.
Each individual referrer is entitled to a share of the income from staking, farming and any fees from all transactions made by their referrals, i.e., people whom they personally invited to the MarsBase via Offer link.
Offer link is a link to a specific deal from the MarsBase platform. Each user participating in the offer through this link, each shared link is included in the active links in your referral program dashboard.
- The reward is calculated from the platform commission (0.5% from the seller and 0.5% from the buyer).
- The reward is distributed in accordance with the table (see below).
How to get and improve the referral level?
There are several ways to earn a high referral level on MarsBase:
- Staking. By locking your MBase tokens in a smart contract, you will be able to receive a higher level of income not only from staking, but also from each referral user.
- Activity. Increase personal spending on fees, that is, make more transactions.
- Ownership of MarsBase NFT. Purchase or receive an NFT from our collection as a reward.
- Referral turnover. Your referrals make more transactions, you increase the leader level.
Rewards for Offer Link Referrals
Level Name | Unlocked Level | 1 lvl | 2 lvl | 3 lvl | 4 lvl | 5 lvl |
First level | 1 | 7,23% | ||||
Second level | 2 | 8,68% | 3,62% | |||
Third level | 3 | 10,42% | 4,34% | 1,56% | ||
Forth level | 4 | 12,5% | 5,21% | 1,88% | 0,63% | |
Fives level | 5 | 15% | 6,25% | 2,25% | 0,75% | 0,19% |
Rewards for Invite Link Referrals
Level Name | Unlocked Level | 1 lvl | 2 lvl | 3 lvl | 4 lvl | 5 lvl |
First level | 1 | 5,79% | - | - | - | |
Second level | 2 | 6,94% | 2,89% | - | - | - |
Third level | 3 | 8,33% | 3,47% | 1,25% | - | - |
Forth level | 4 | 10% | 4,17% | 1,5% | 0,5% | - |
Fives level | 5 | 12% | 5% | 1,8% | 0,6% | 0,15% |
Farming Rewards
Distributed from the pool for farming rewards. If a direct referral has farmed 1,000 MBase, and the referrer’s qualifying status is “Level 5”, then he will receive a reward of 10% from referral farming (~ 100 MBase)
Level Name | Unlocked Level | 1 lvl | 2 lvl | 3 lvl | 4 lvl | 5 lvl |
First level | 1 | 5% | - | - | - | |
Second level | 2 | 6% | 5% | - | - | - |
Third level | 3 | 7% | 6% | 5% | - | - |
Forth level | 4 | 8% | 7% | 6% | 5% | - |
Fives level | 5 | 10% | 8% | 7% | 6% | 5% |
Conditions for obtaining the qualifying status of B2C referrer
Level name (The referrer’s level) | Staking LP | Personal expenses on fees | The volume of fee expenses of the direct referrals | Total expenses from all referrals (up to 5 levels) |
First level | $ 100,00 | $ 10,00 | $ 0,00 | $ 0,00 |
Second level | $ 1 000,00 | $ 100,00 | $ 500,00 | $ 0,00 |
Third level | $ 5 000,00 | $ 1 000,00 | $ 2 000,00 | $ 15 000,00 |
Forth level | $ 10 000,00 | $ 2 000,00 | $ 4 000,00 | $ 30 000,00 |
Fives level | $ 50 000,00 | $ 5 000,00 | $ 15 000,00 | $ 50 000,00 |
Basic definitions
Partner - B2B referrer attracting users to the platform.
Launchpad - A partner who can invite projects to the platform and receive an increased reward of up to 50%.
Project - Partner invited by a Launchpad or MarsBase itself, can create Offel links or Invite links, a difference from B2C referrer in an increased reward of up to 30% for a structure built by Invite Links.
B2B users have their account and they can generate a special B2B referral link and receive income from it.
Rewards for B2B Invite Link Referrals
Status | Level | 1 | 2 | 3 | 4 | 5 |
Partner1 | 1 | 10% | ||||
Partner2 | 2 | 15% | 10% | |||
Partner3 | 3 | 20% | 15% | 10% | ||
Partner4 | 4 | 25% | 20% | 15% | 10% | |
Partner5 | 5 | 30% | 25% | 20% | 15% | 10% |
Partner status
Status | Reward B2B IL | Reward B2C IL | Reward OL | Turnover $ LaunchPad | Turnover $ Project |
Partner 1 | 10% | to 10% | 15% | 100 000 000,00 | 10 000 000 |
Partner 2 | 20% | to 15% | 19,25% | 250 000 000,00 | 25 000 000 |
Partner 3 | 30% | to 20% | 24% | 500 000 000,00 | 50 000 000 |
Partner 4 | 40% | to 25% | 28,13% | 1 000 000 000,00 | 100 000 000 |
Partner 5 | 50% | to 30% | 33,50% | 1 500 000 000,00 | 150 000 000 |
For the OTC market, reputation is everything. Therefore, we are introducing 10 reputation levels, a task center and many other social features that will allow you to get the best OTC conditions from verified accounts, the best discounts in transactions, the best farming conditions and much more.
On MarsBase, you will be able to grow your status, earn a reputation and expand the network of investors with whom you do business. Find people with similar strategies and values. Joint work of crypto whales and retail investors will become possible.
Experience is measured in Mex points (MarsExperience) and awarded for a one-time completion of tasks or activities, and reputation is achieved by a positive assessment from users and the platform.
Experience points allow you to develop in the leaderboard, and receive rewards for completing tasks from the task board. For example, a personal trading turnover that has reached XXX$.
Reputation is measured in Marp score (MarsReputaion) and is accrued for various actions supporting the MarsBase product: Ambassador or Referral programs, participation in the verification of the guarantor of transactions, participation in Best bid offers, working with clients, conducting P2P transactions, etc. Reputation is an indicator of trust, which increases as long as you interact with other users.
The accumulation of experience and reputation points gives certain benefits on the platform:
- 1.Lower trading fees instead of general 0,5% and reduced vesting management fees instead of 2,5%
MarsBase normally takes a fee of 0.5% for every trade, but with NFT fees are much lower! Only 0.1% for OTC trades and 1% instead of 2.5% for vesting management.
- 1.Access to private tokensale rounds
The NFT opens all doors on MarsBase from buying MBase at private round prices to making profits on the upcoming IDO.
- 1.Bonus multiplier, larger cashback and referral bonuses
Holding our NFT will automatically increase your farming, staking and referral rewards.
- 1.Access to a private OTC desk, exclusive deals with the VIP community and DAO
NFT owners will be able to see private transactions with the best conditions and get into a closed community of traders with hot deals and VIP features.
- 1.Access to private Eve NFT mint
You also get a higher chance to participate in Eve's minting.
- 1.Discount on NFT upgrades
Upgrade your NFTs to get more bonuses from referrals and larger income from farming.
- 1.Higher rewards for completing tasks and activities
Completing certain tasks as a part of the OTC Army will get you additional bonuses.
- 1.Discounts on offer promotions on the OTC desk
All offers on the platform can be promoted by the offer makers to attract additional attention from the trader. With NFT you get discounts on this option.
We also plan to implement cashback in MBase tokens in all OTC transactions. These tokens can be immediately sold on the market. The level of cashback will depend on the level of the user's account and reputation, as well as on the size of staking.
The primary sources of the platform income are:
- Fees. The platform earns on fees from OTC transactions.
- Part of the daily distribution from mBASE farming goes to MarsBase.
- Promotion of transactions in the OTC desk.
- Special VIP services for HNWI and whales.
- Fee for raised funds from.
OTC Fee structure
On regular crypto OTC desks, the commission can exceed 3-5%, OTC managers can charge even more, depending on how difficult it is to aggregate a large volume of a rare coin.
For example, you want to sell $100,000 worth of PROM tokens. The commission of an OTC manager can be $10,000. On a regular OTC desk, the loss will be from 3 to 5 thousand dollars. And by selling a large number of assets on Marsbase, you will save most of these funds by paying only $500 as an offermaker.
At the moment, there are 2 types of fees on the platform: Platform fee or Gas fee.
The platform fee equals 1% of the total transaction but is divided between the offermaker and the bidder in half as follows.
The offer maker gets a fixed fee of 0.5% of the size of the closed transaction in the same tokens as the offer itself.
-The bidder gets a fixed fee of 0.5% of the bid size. It is paid in tokens chosen to make the bid itself.
-In case the offer or the bid was cancelled, no commission is charged.
Moreover, we are working on the dynamic commission which will depend on how liquid toke is. The more asset is illiquid, the higher the fee participants will pay.
Who benefits from using MarsBase ecosystem?
DEXes - Revenue-sharing and user retention
Liquidity providers and miners - Large orders for low-liquid tokens
VC funds - Easy exit from projects
Projects - Saving their tokens from being dumped in the volatile market
We offer the B2B segment to integrate MarsBase Widget on their platforms for free.
MarsBase widget helps to scale P2P deals for each client individually. MarsBase widget is a mini version of the OTC desk where you can create an offer, make a bid, see the dashboard and track your transactions. Integration of our widget will give you the following benefits:
- Aggregate traders from different sources
- Save your money
- Provide your options trade with better conditions
- use cases
There are 2 options for using the OTC desk widget as a B2B client: Pro and Light. Light is a widget that is installed on the project website and has almost the same functionality as the pro, but users do not leave the project website and trade p2p there, but at the same time they see offers only for the token on the website of which they are.
And in the case of PRO, users trade on the OTC desk and at the same time see all other offers from other traders. The project receives additional income from its referral link for providing our OTC desk with additional liquidity.
The main advantage of MarsBase for such B2B clients, as Whales, Founders and teams of DeFi projects, Launchpads and VCs is that they most likely have large amounts of liquidity, as well as the desires to trade it.
On MarsBase they can:
- Sell or buy a large amount of assets as profitably and quickly as possible
- Anonymously trade large volumes
- Exchange mined liquidity for other crypto assets
- Bring tokens to the market without pressure on their price
- Keep investors from dumping tokens for as long as possible and/or evenly
B2B business model
Timeframe | Total B2B | Crypto VC | Liquidity providers | Projects | DEX’s | Volume (USD) |
Q1 2022 | 5 | 1 | 1 | 1 | 1 | 0 |
Q3 2022 | 40 | 9 | 6 | 12 | 3 | $180,250 |
Q1 2023 | 111 | 23 | 18 | 40 | 11 | $1.2 M |
HNWI - Custodial access to OTC desk and trade large volumes without loss
Whales - Exit projects quickly and anonymously
Dolphins - Trading with discounts and premiums
Retail investors - Arbitrage opportunities
As a B2C investor you can earn from expenses, i.e. from the commissions of other users that you brought to the platform.
For every link you share and a user who comes to MarsBase with your help, you will earn revenue as a share of that user’s spend. If a new user creates an offer or a bid, then even from level 1 you still get shares from MarsBase commissions.
If your referrals who clicked on the link (it doesn’t matter if they bid on the total or not) also open their offer and pay fees, then this is a different kind of income — it depends on the status in the system. More on this in the coming article. All money is taken from fees only. Each referral can get you additional income depending on your reputation level.
On regular crypto OTC desks, the commission can exceed 3-5%, OTC managers can charge even more, depending on how difficult it is to aggregate a large volume of a rare coin.
For example, you want to sell $100,000 worth of PROM tokens. The commission of an OTC manager can be $10,000. On a regular OTC desk the loss will be from 3 to 5 thousand dollars. And by selling a large amount of assets on MarsBase, you will save most of these funds by paying only $500 as an offermaker.
At the moment, there are 2 types of fees on the platform: Platform fee or Gas fee.
The platform fee equals 1% of the total transaction, but is divided between the offermaker and the bidder in half as follows.
The offer maker gets a fixed fee of 0.5% of the size of the closed transaction in the same tokens as the offer itself.
The bidder gets a fixed fee of 0.5% of the bid size. It is paid in tokens chosen to make the bid itself.
In case the offer or the bid was canceled, no commission is charged.
B2C business model
Timeframe | Total B2C | Whales include HNWI (total) | Dolphins (total) | Retail investors (total) | Volume (USD) |
Q1 2022 | 1628 | 3 | 125 | 1500 | $21,625 |
Q3 2022 | 19718 | 120 | 464 | 19134 | $284,581 |
Q1 2023 | 114192 | 462 | 2240 | 111490 | $1,419,117 |
MarsBase | TOP 50 CEX
Huobi, Kraken, Binance Gemini | DEX & Dapps 1inch, Uniswap, Sushiswap etc. | ОТС desks Genesis, OTC Trade Zerocap, SFOX | ОТС services Cumberland | |
Offer method | P2P, OTC Table | Order Book | AMM | OTC Table | OTC Table |
Price impact / slippage | No | Medium | Very high | No | No |
Service fee | Very Low | Low | Medium | Above average | Above average |
Number of liquid coins | More than 5000 | Over 100 / Exchange | More than 500 / all | About 50 / highly liquid | About 50 / highly liquid |
Entry threshold | No | 10к | No | 100к | 200к |
OTC trades for retail investors | ✅ | No | No | No | No |
Best bid Auctions | ✅ | No | No | Yes | Yes |
Passive income (staking) | ✅ | Yes | Yes | No | No |
Automatic aggregation of liquidity from different sources | ✅ | No | Yes | No | No |
Trade vested assets | ✅ | No | No | No | No |
We store all money only in a smart contract, we never touch it ourselves.
We do not have tools to get other people's money from smart or block them
Smart contracts are open, the code is verified on Etherscan and available in Github.
MBase is used across the whole MarsBase ecosystem, and it is also a governance token that will give voting rights to MarsBase dOTC users.
MBase is a multi-chain DeFi OTC utility token of the MarsBase platform. Initially it will be in the BEP-20 format and will later support transactions both on the BSC and Ethereum network. In the future, we will move to cross-chain and other networks and the MBase token will become multi-chain token bridged with other blockchains.
The MBASE token can be used for the following purposes:
- Get a discount off MarsBase fees
- Receive a cashback of up to 50% from transactions
- Buy and trade vested or usual NFT items
- Manage your tokens speeding up or slowing down vesting period
- Stake Mbase to increase your referral level
- Increase holder bonus for staking MBase for longer time
- Get access to the VIP OTC desk, private chats and channels
- Pin your OTC deals higher in the offer list to attract more attention
According to the plans of the MarsBase team, a total of 6,000,000,000 MBASE tokens will be issued. They will be distributed as follows:
Seed & Private rounds - 37,36% (2 241 666 666 MBase)
Seed round - 20,83% (1 250 000 000 MBase)
Private SHO Fundraise - 2,78% (166 666 666 MBase)
KOL's round (for influencers, ambassadors & community) - 0,42% (25 000 000 MBase)
Public SHO Fundraise - 13,33% (800 000 000 MBase)
Team and advisors — 13.3% (850 000 000 MBase)
Team — 10.83% (650 000 000 MBase)
Advisors and bloggers — 2.5% (150 000 000 MBase)
MBase vesting — 4.17% (250 000 000 MBase)
Time machine pool— 2.5% (150 000 000 MBase)
Light speed pool — 0.83% (50 000 000 MBase)
Other vesting mechanics— 0.83% (50 000 000 MBase)
Incentivize — 14.64% (~1 billion MBase)
MBase LP farming + holder rewards, Double rewards staking & farming rewards multiplicator - 6,58% (395 000 000 MBase)
Three-type referral program rewards - 4,47222% (268 333 334 MBase)
Cashback & reputation layer rewards - 1,92% (115 000 000 MBase)
Other future marketing drops & marketing - 1,67% (100 000 000 MBase)
Reserve fund - 28,33% (1 700 000 000 MBase)
DAO treasury, Grants, hackathons, etc. - 3,33% (200 000 000 MBase)
Strategic investments reserved - 13,33% (800 000 000 MBase)
Ecosystem Growth - 3,33% (200 000 000 MBase)
Reserves (SAFU) - 8,33% (500 000 000 MBase)
Liquidity and staking pools will be available for distribution of MBase tokens.