Token Trading

Overview

Once a campaign graduates, its tokens become tradable on the RedCarpetHQ marketplace. This guide covers everything you need to know about trading campaign tokens, from creating offers to executing trades.

Getting Started with Trading

Prerequisites

Before you can trade, you need:

✅ Web3 Wallet - MetaMask or WalletConnect compatible
✅ Campaign Tokens - From graduated campaigns
✅ USDC - To buy tokens or pay fees
✅ ETH - For gas fees

When Can You Trade?

Trading becomes available when:

  • Campaign successfully graduates

  • Tokens are distributed to supporters

  • Marketplace listing is activated

  • Typically within minutes of graduation

    • How Trading Works

    Escrow-Based System

    RedCarpetHQ uses a secure escrow system:

    1. Seller creates offer → Tokens locked in escrow
    2. Buyer accepts offer → USDC locked in escrow
    3. Smart contract executes → Atomic swap
    4. Assets transferred → Buyer gets tokens, seller gets USDC
    5. Fees distributed → Platform and ecosystem fees collected

    Benefits:

  • No counterparty risk

  • Atomic transactions

  • Transparent pricing

  • Secure escrow

    • Trading Fees

    Standard Fee: 2.5% per trade

    Fee breakdown:

  • Charged to the buyer

  • Deducted from USDC payment

  • Distributed via FeeDistributor:

  • 40% → Platform treasury

  • 40% → Trading contests

  • 10% → UnifiedVault (lenders)

  • 10% → Producer rewards

    • Example:

  • Token price: 100 USDC

  • Trading fee: 2.5 USDC

  • Total cost: 102.5 USDC

  • Seller receives: 100 USDC

    • Creating Sell Offers

    Step-by-Step Guide

    1. Navigate to marketplace
    2. Select your token
    3. Click "Create Offer"
    4. Enter details:

  • Amount of tokens to sell

  • Price per token (in USDC)

  • Expiration time (optional)

    • 5. Review and confirm
    6. Approve token spending (first time only)
    7. Confirm transaction

    Pricing Your Offer

    Consider these factors:

    📊 Market Data:

  • Current VWAP (Volume-Weighted Average Price)

  • Recent trade history

  • Active offers

  • Market depth

    • 💡 Strategy:

  • Price above VWAP for premium

  • Price at VWAP for quick sale

  • Price below VWAP for immediate sale

  • Consider market trends

    • Offer Types

    1. Standard Offer

  • Fixed price per token

  • Partial fills allowed

  • Active until cancelled or filled

    • 2. All-or-Nothing

  • Must sell entire amount

  • No partial fills

  • Higher risk, potentially better price

    • 3. Time-Limited

  • Expires after set duration

  • Creates urgency

  • Auto-cancels if not filled

    • Buying Tokens

    Finding Offers

    Browse marketplace:

  • View all active offers

  • Filter by token

  • Sort by price

  • Check offer details

    • Key information:

  • Price per token

  • Total tokens available

  • Seller address

  • Time remaining

  • Fill percentage

    • Accepting Offers

    1. Select an offer
    2. Choose amount (full or partial)
    3. Review total cost (including fees)
    4. Approve USDC spending (first time only)
    5. Confirm purchase
    6. Receive tokens instantly

    Buying Strategy

    ✅ Best Practices:

  • Compare multiple offers

  • Check VWAP for fair pricing

  • Consider market trends

  • Start with small amounts

  • Verify token contract address

    • ❌ Avoid:

  • Buying at extreme premiums

  • Ignoring market data

  • FOMO (Fear of Missing Out)

  • Overleveraging

    • Managing Your Offers

    Viewing Your Offers

    Active Offers:

  • See all your open sell offers

  • Track fill status

  • Monitor time remaining

  • View total value locked

    • Offer History:

  • Past trades

  • Cancelled offers

  • Expired offers

  • Performance metrics

    • Cancelling Offers

    When to cancel:

  • Price no longer competitive

  • Market conditions changed

  • Need tokens back

  • Strategic repositioning

    • How to cancel:
    1. Go to "My Offers"
    2. Select offer to cancel
    3. Click "Cancel Offer"
    4. Confirm transaction
    5. Tokens returned to wallet

    Note: You pay gas fees for cancellation.

    Advanced Trading

    Partial Fills

    How it works:

  • Buyers can purchase part of an offer

  • Remaining tokens stay in escrow

  • Offer remains active

  • Seller receives USDC for filled portion

    • Example:

  • Offer: 1,000 tokens @ 1.5 USDC each

  • Buyer 1 purchases: 300 tokens

  • Remaining offer: 700 tokens @ 1.5 USDC each

  • Seller receives: 450 USDC (minus fees)

    • Price Discovery

    Market mechanisms:

  • Supply and demand

  • VWAP oracle tracking

  • Historical trade data

  • Order book depth

    • Factors affecting price:

  • Campaign performance

  • Dividend announcements

  • Market sentiment

  • Overall crypto market

  • Token holder concentration

    • Arbitrage Opportunities

    Potential strategies:

  • Buy low, sell high

  • Cross-market arbitrage (future)

  • Dividend arbitrage

  • Risk tier changes

    • Risks:

  • Gas fees eat profits

  • Market moves against you

  • Liquidity constraints

  • Smart contract risks

    • Trading Safety

    Security Best Practices

    🔒 Protect Yourself:

  • Verify contract addresses

  • Use hardware wallets for large amounts

  • Double-check transaction details

  • Start with small test trades

  • Never share private keys

    • ⚠️ Red Flags:

  • Offers far above/below market

  • Suspicious token contracts

  • Unverified sellers

  • Too-good-to-be-true prices

    • Common Scams

    1. Fake Tokens

  • Scammers create tokens with similar names

  • Always verify contract address

  • Check token on campaign page

    • 2. Phishing

  • Fake marketplace websites

  • Malicious wallet connection requests

  • Always use official RedCarpetHQ domain

    • 3. Wash Trading

  • Artificial volume creation

  • Manipulated prices

  • Platform monitors and penalizes

    • Market Analysis

    Reading the Order Book

    Bid-Ask Spread:

  • Bid: Highest buy offer

  • Ask: Lowest sell offer

  • Spread: Difference between bid and ask

  • Tight spread = liquid market

    • Market Depth:

  • Total tokens available at each price

  • Indicates liquidity

  • Shows support/resistance levels

    • Technical Indicators

    VWAP (Volume-Weighted Average Price):

  • Fair market price indicator

  • Weighted by trading volume

  • Updated with each trade

  • Used by risk oracle

    • Trading Volume:

  • Total tokens traded

  • Indicates market activity

  • Higher volume = more liquid

  • Tracked per epoch for contests

    • Market Sentiment

    Bullish Indicators:

  • Increasing buy volume

  • Rising VWAP

  • Dividend announcements

  • Positive campaign updates

    • Bearish Indicators:

  • Increasing sell pressure

  • Declining VWAP

  • Negative news

  • Producer inactivity

    • Trading Contests

    Overview

    Compete for rewards by trading:

  • Epoch-based contests (typically 7 days)

  • Rewards based on buy volume

  • Minimum threshold to qualify

  • Pro-rata reward distribution

    • How to Participate

    1. Trade during contest epoch
    2. Buy tokens (only buy volume counts)
    3. Meet minimum threshold
    4. Claim rewards after epoch ends

    Rewards:

  • 40% of trading fees go to contests

  • Distributed proportionally to buy volume

  • Claimed through Contest contract

    • Strategy Tips

    ✅ Maximize rewards:

  • Focus on buy volume

  • Time trades strategically

  • Consider fee costs

  • Track epoch timing

    • ❌ Avoid:

  • Wash trading (prohibited and monitored)

  • Trading just for contests

  • Ignoring actual token value

    • Tax Implications

    Important: Trading has tax consequences:

    Taxable Events:

  • Selling tokens (capital gains/losses)

  • Buying tokens (cost basis established)

  • Receiving dividends (income)

  • Using tokens as collateral (possibly)

    • Record Keeping:

  • Track all trades

  • Note purchase prices

  • Record sale prices

  • Calculate gains/losses

  • Consult tax professional

    • Frequently Asked Questions

    Q: When can I start trading my tokens?
    A: Immediately after the campaign graduates and tokens are distributed.

    Q: Is there a minimum trade size?
    A: No platform minimum, but consider gas fees for small trades.

    Q: Can I cancel a trade after accepting an offer?
    A: No, trades are atomic and irreversible once confirmed.

    Q: What if no one buys my tokens?
    A: You can lower your price, wait for market conditions to improve, or cancel your offer.

    Q: Are there trading hours?
    A: No, the marketplace operates 24/7 on the blockchain.

    Q: Can I trade tokens from multiple campaigns?
    A: Yes, each graduated campaign has its own tradable token.

    Related Resources

  • Marketplace Overview
  • Creating Offers
  • Trading Contests
  • Risk Management
  • Price Discovery

    • Need Help?

    If you have questions about trading, contact our support team at support@redcarpethq.org.