[KCF Application] Web3 Escrow Service 'FundSafe'

1. Product name
FundSafe

2. Product description
“FundSafe" is a blockchain escrow service to prevent rugpull. The combination of escrow + custody + governance helps blockchain project teams avoid dereliction of duty, embezzlement and lax management. There would not have been a second Terra or FTX crisis because governance (investors) have the authority to use funds.

When selling and raising funds for NFTs or FTs, problems such as embezzlement frequently occurred because the traditional method transferred funds directly to the seller.


However, escrow services can solve those problems. Once you use FundSafe, funds will be kept in the contract of a third party “FundSafe”, and to use them, a fund use plan must be drawn up and a vote registered to obtain approval from investors (DAO).

Investors vote against the plan to prevent withdrawals if the plan to use the funds is suspicious or unreasonable. Accept withdrawals only if they are not.


[Vote for approval of withdrawal]

[All withdrawals must pass the approval vote]

These escrow services address the following issues.

  1. Project Team’s disappearance
    1.1 Disappearance with token/NFT sales funds
    1.2 Disappearance with funds after liquidity release
  2. Selling token at the market price
    2.1 Selling their current token at the market price.
    2.2 Selling more tokens at the market price after additional issuing
  3. Token mortgage
  4. Unilateral unreasonable liquidation
  5. Other embezzlement and breach of trust

‘FundSafe’ combines existing fragmented and partial solutions to enable comprehensive risk management.


[Risk management by improving and combining existing methods]

FundSafe transfers token authority from the project team and entrusts the tokens it holds. After the project is registered, the project-only contract is distributed to entrust the project funds and tokens. Funds (coins) and tokens can be withdrawn if approved by the DAO in a vote to request the use of funds. Funds and tokens will not be withdrawn if DAO approval is unsuccessful.
A Snapshot is created when the vote is confirmed.


[Key Process]

FundSafe’s revenue model is to share revenue generated by fund management linked to the DeFi platform.


[Profit Model]

3. Team information

Star Inc. is a blockchain company in South Korea, founded in 2022. Star moved into the Seoul FinTech Blockchain Lab with the support of the Seoul Metropolitan Government as a FundSafe project, and the Seoul Metropolitan Government is an incubating company. Star Inc. is currently being accelerated by the SS2 Investment. Star Inc. have also passed the Kibo Venture Camp and is waiting for the final result.

image

Official Link
Website : www.starinc.io

Docs : https://docs.fundsafe.io/

Telegram: Contact @beastar_official

Discord : Be_A_Star

Twitter : https://twitter.com/beastar_2023

Medium : BeaStar – Medium

Youtube : https://www.youtube.com/@BeaStarGo

Team

  • Youngdae Ahn / CEO, CTO

17 Years of Development and Business

Crypto Exchange, Launchpad

Audit Solution, Overall project Management

5 Years of local development experience in Japan

Kyungnam University, Computer Engineering

  • Kevin Kwon / CNO

6 Years of Overseas Business

Coinbox / Team leader of Overseas Business Department

MisungMpro / Overseas Customer Interpreter

Kyonggi University, Business Administration

  • Woody Kim / CM

4 Years of Marketing

Startup Facilitator

Fair Election Commission / Web development

Brain Solutions / Marketing

Taste Prague Biz Ops

Woosong University, Occupational therapy, Social welfare

4. Grant proposal

We apply for a grant of 400,000 USD(2,541,066 KLAY) to support the development.

  1. Development (180,000 USD/1,143,478 KLAY) : ~ 2024/03/31
  • FundSafe detailed features development
  • Recruiting Developer
  1. Marketing (160,000 USD/1,016,428 KLAY) : ~ 2024/03/31
  • Advertisement
  • Promotion
  • SNS Promotion
  • Event and user rewards
  • Recruiting Marketer
  1. Operating Expenses (60,000 USD/381,160 KLAY) : ~ 2024/03/31

[google budget form link ]

Milestone

Milestone 1: Snapshot
Expected completion date: 4 weeks
When the withdrawal request vote is confirmed, DAO is generated by snapshot , and voting registration is notified

Milestone 2: Launchpad API
Expected completion date: 4~5 weeks
Launchpad Interworking API Implementation

Milestone 3: Voting weight value
Expected completion date: 3~4 weeks
Vote - Weight Value Test and Activation

Milestone 4: Community Auto-Creation
Expected completion date: 3 weeks
Implementation of community auto-creation

Milestone 5: DeFi deposit worker
Expected completion date: 6 weeks
Implementation of Auto-Worker to deposit on DeFi

Milestone 6: Custody
Expected completion date: 6 weeks
Implementation of Custody

Expected Impact

  1. Investors can also participate in ICO/INO of unknown projects with confidence.

(Right now, investors can’t invest freely because we don’t know when the unknown project will disappear.)

  1. As DAO’s influence grows, the treatment of DAO will be better than it is now.

(The current project team doesn’t listen to DAO after the ICO/INO)

  1. Project performance will be improved by reflecting the opinions of the project participants better than they are now.

(Because participants’ opinions are the needs of the market)

  1. Can prevent a sharp drop in the market price due to the mass sale of governance tokens by chain.

(Currently, the market price is falling frequently due to selling ICO/INO sales funds or eco funds at once.)

  1. The purification of malicious projects will eventually raise awareness of the blockchain.

5.Status

We are currently at PoC stage. Our early growth strategy is to onboard the project team through our existing launchpad platform. The funds collected through the launchpad is automatically deposited to FundSafe. We have made partnerships with 11 teams, and they are launching the project at our launchpad.

6.Summary
In the past, escrow services were not popularized. However, escrow services have become mandatory since the Half Plaza (One of the biggest scam in Korea) incident in Korea in 2003.
Rugpull is currently prevalent in the blockchain industry. Especially recently, there have been very large Rugpull incidents such as Terra Luna and FTX continuously. Due to these events, blockchain regulations are getting stricter, and investor protection is becoming more important.
Whether escrow services are mandatory, so is Web3. Currently, all virtual asset regulations are under way to protect investors. FundSafe, an investor protection platform, is the future.

We are looking forward for your good review.
Thank you so much for reading.

6 Likes

Thanks for introducing the project.
This project seems to solve the unreliability of sending funds to ICOs. But how can people trust FundSafe? Is there any way to solve this?
And can you provide linkedin information about the developer of this project?

4 Likes

Thank you for the good question.

We will not have all the authority for the contract and the funds in the FundSafe. Authorities of the contract related to funds will be given to the securities company, bank or its affiliates which have a public confidence. We are currently talking with the KODA(Korea Digital Asset) which is a joint venture of Kookmin Bank(Korea’s biggest bank) for it. We also had meeting with many securities companies recently. We will form a partnership with these credible institutions and hand over all authority to them.
This is the most frequently asked question by the judges so far. We are working hard to solve this problem.

Also, we are having a meeting with the FSS(Financial Supervisory Service) through the Fintech Center Korea regarding the regulations.

This is the linkedin information about the developer : https://www.linkedin.com/in/ydahn/

Thank you.

2 Likes

Then the contract source code is important. Klaytn community need to check the contract whether the FundSafe Owner has the ability to withdraw funds.

3 Likes

That’s right, our source of the Escrow Contract will be open to everyone.

So far, blockchain has been so vulnerable to fraud due to structural limitations. We are trying to change the structure itself and present a new paradigm. It will provide a strong base for all blockchain projects to focus on creating value. And we hope that Klaytn will be the starting point for that historical change. Thank you.

3 Likes

This is a short introduction video attached for your better understanding.(1Min)

4 Likes

Ok it looks great but I still have uncomfortable feelings on this. How can you prove it is not a scam? Is there any security policy to prevent rug pull of FundSafe itself?

3 Likes

The purpose is good, and it seems good that the founder cannot withdraw at will in terms of funds.
However, there are rugs that the value of the project coin is sold by the CEO and disappears,
The biggest problem is whether it is continuously developed and operated, and it seems that supplementary measures are needed for this.

3 Likes

암호화폐 시장에서 자금 관리에 대한 취약점이 많은데 FundSafe같은 에스크로 서비스 도입 등은
장기적으로 봤을 때 아주 좋은 취지의 투자 보호 플랫폼이라고 생각됩니다. 앞으로 좀 더 다양한 안전장치가 마련되면 좋겠네요~

3 Likes

Thank you very much for the information.

In crypto field, security is very important and easy to be exposed for attack.

Fundsafe is really good tool to prevent it.

3 Likes
  1. When is the commercialization time for commercialization?
  2. Can this project really help a lot of people affected by lugpool?
3 Likes

I applaud you for working on a new project that has never existed before. If the FundSafe project is activated, it will be of great help in preventing rug project that have frequently occurred. I think we need laws and regulations from regulators to activate the project, so I want to know what you think.

2 Likes

Comment Manipulation? Comments with no content are posted at once. This kind of manipulation project is a safe fund??

Erase it conscientiously

2 Likes

FundSafe… I think it’s a project that’s very interesting, fresh, and very strong. The crypto ecosystem was flooded with frequent lugs and lax management… I can’t believe there’s an operating system that can prevent these negative factors… I’m really looking forward to it. And the introduction of the DAO system is also interesting… But the DAO system isn’t always good… There will be parts that need to be supplemented as we operate it, right? I support FundSafe, which will develop in the future by receiving feedback on such matters.

2 Likes

We’ve been lashed by Luna, FTX and we need a fund safe to prevent that from happening again.

2 Likes

there is many problems such as security threat for cryptocurrency market. i just hope that by strengthening this security, hacking or viruses will be prevented to create a platform that can safely trade even in virtual transactions.

2 Likes

Hello, woody_almond

Yes, we have security policy to prevent rug pull of FundSafe itself. As we said above on the comment, we will not have all the authority for the contract and the funds in the FundSafe. Authorities of the contract related to funds will be given to the securities company, bank or its affiliates which have a public confidence. So, only the DAOs can make decisions regarding the funds and tokens.
Thank you for pointing out about it.

2 Likes

Hello, daram_eth

FundSafe can prevent both situations you said by custody.

First, the project team wouldn’t have the authority of the tokens. All the token’s authority will be given to FundSafe so that the project team can’t just sell all the tokens in the market.

Second, investors don’t have to worry about it. Since all the funds are in custody and only withdrawn through their voting, they can just reject the withdrawal if the project doesn’t develop. And the investors can just vote for the liquidation of the project, and they can get their funds back from the project.

Thank you for your opinion.

2 Likes

There are many vulnerabilities in fund management in the cryptocurrency market, but the introduction of escrow services such as FundSafe is considered a very good investment protection platform in the long run. I hope there will be more various safety measures in the future->

Hello, ijmom

We will keep listening to the users. We hope to exterminate all the rug pulls so that the blockchain market can grow.

Thank you for your comment.

2 Likes

Hello, phmico

Yes, we can also protect the assets from being attacked. The funds will be kept safely in FundSafe.
Thank you for your support.

2 Likes