About the Surge $1000 beta test deal

4 min readJun 11, 2024

This deal pays you a bonus to stake and wait one day. Surge collects stakes (escrow) toward the purchase of a deal. Surge is a crypto-native upgrade for SAFEs, SPACs, accelerators, and launchpads.

Thank you for offering to test Surge. In this test, we are offering to buy 1000 USDC for 2011 USDC. On average, participants should get about $201 for every $100 that they stake. Early stakers get a bigger bonus. There is no minimum stake size for people that want to try this out and provide some feedback.

Contact us on Telegram for info

Please contact us here on Telegram. We are hoping to get feedback

Stake (and optionally unstake)

Use the staking UI to place a stake for the Arbitrum deal or the Base deal. Please keep your stake under $100. There is no minimum.

You can unstake at any time before closing.

We post a closing time

When we have at least $1000 in stakes, we will set a closing time, and terms such as the minimum and maximum we can claim. The closing time needs to be at least 1 day after the time that we post these settings. This is the “closing delay” that allows people to unstake if they don’t like the final deal terms.

We claim and deliver

If the deal contains total stakes that are more than the minimum ($1000) at closing time, then we can claim the stakes, and deliver the assets that we promised. The unstake feature is automatically frozen for up to seven days and then reactivated.

We can claim the first $1000 in stakes. We will deliver USDC in return. We will post a spreadsheet showing the recipient addresses, claimed amounts, and delivered amounts.

Unstake remaining assets

Stakes that come after the $1000 maximum will not be claimed. Stakers should come back and unstake them.

Features

This test shows some features of Surge deals.

Discounts reward early stakers with up to a 5X multiple.
Stakers can unstake at any time before closing. You can take your money back if you don’t like the deal or if you have a more urgent use. However, when you unstake, you lose your place in line for a bonus or discount.
The deal and the related smart contract use a simple model for security. If anything goes wrong, the stakers should unstake. Unstaking is available, except for a period following a successful closing.
Stakers get a transferrable NFT with a “token bound account” that holds their stake and place in line.

Surge helps users to buy deals that don’t exist yet, get upside without downside, put retail in before VC, accelerate closing, and deliver compliance for sellers of token and RWA deals.

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Discount Calculations

This deal will offer discounts depending on when you stake. The price increases from an 80% discount to a 0% discount. The price line looks like this.

Discount curve starts at 80% (5 multiple, 20% price) for the first $ staked, and ends at 0 discount

The curve below shows the multiple that you will get at closing for each stake up to 1X total stakes.

Return at closing. Start with a 5 multiple, get tokens at a rate of 1/P where P = .2+.8x

We can integrate this to find out how much you get for each stake s starting at cumulative stakes x.

Here are formulas for using this type of linear discount.

C = cumulative stakes claimed (1 in the charts above)
M = multiple granted to the first bonus (5 in the charts above), with (1–1/M) as the starting discount
P = final price (1 in the charts above)

The price on a linear discount curve goes from P/M at stake 0 to P at stake C. The price at point x is
P/M+x(P-P/M)/C

The rate of token purchases at x is 1/p or 1/(P/M+x*(P-P/M)/C)

The number of tokens you get for a stake s starting at cumulative stakes x is the integral of this rate from x to (x+s). The formula for the integral is
C*M*ln(C+(M-1)x)/((M-1)*P)

A stake of size s beginning at cumulative stakes x gets token amount
integral(x+s)-integral(x)

If we set a final price P, we can calculate the number of tokens to distribute, T. T = integral from 0 to C = CMln(CM)/((M-1)P) -CMln(C)/((M-1)P)
T=ln(M)CM/((M-1)P)

If we allocate a specific number of tokens T, then we can calculate the final price P with
P=ln(M)CM/((M-1)T)

Why we like these parameters

We selected M=5 or an 80% starting discount, with a linear discount curve, because it gives us a good mix of three features:

80% discount is a good reward for early supporters
The linear discount creates a return multiple curve that is steep at the beginning, providing motivation for early stakers to act quickly
The total number of tokens T is 2.01 times the number of tokens we would sell if every stake paid full price P. It is not too expensive, and it is easy to calculate (about 2).