DuckGang is a native project built on Sei V2 (Sei EVM) aimed to introduce an entertaining, gamified DeFi experience to users regardless of their previous knowledge of DeFi. Sitting at the intersection of DeFi, GameFi, and meme coins, DuckGang is designed to combine the sustainable, predictable income rate of DeFi, the entertainment, and stickiness of GameFi, and the collaborative speculative nature of meme coins. The result is a platform where users perform DeFi actions as a form of in-game, in-platform gestures while enjoying social elements in both collaborative and combative settings.

While the overall crypto market is largely cyclical, those who have been in the industry long enough to go through multiple cycles would understand that ultimately, most people in crypto are looking for the answers to these 3 questions:

1. How can I make a lot of gainz?
2. How can I win consistently?
3. How can I have fun?

These 3 questions are perhaps oversimplified to a degree, yet they are the indicators of what the majority of not only retail investors but also largely institutional investors are looking for: multi-fold incomes, passive income, and entertainment. These three components can directly be linked to some of the most prominent areas within Web3. Multi-fold incomes are closely linked with high-speculation tokens such as meme coins and other non-utility tokens. Passive income is related to areas such as Decentralized Finance (DeFi) and Liquid Staking Derivative Finance (LSDFi). Entertainment is the factor that largely drives GameFi and fan tokens.

The shortcoming in all these areas mentioned above is that it addresses only a maximum of two of the three concerns. Meme coins lack consistency and are highly market-dependent. DeFi and LSDFi lack quick, high earnings and entertainment. GameFi and fan tokens lack high earnings and consistency. This presents a unique market opportunity for a project to combine the three elements and use the pros and cons of each to amplify the benefits while minimizing the costs. This is where DuckGang enters.

In DuckGang, there are a few essential elements that work together to create the entire experience for the users and the DuckGang community. Some of the most essential components are the following:

1. Staking and debase staking
2. Random event triggers
3. Hyper-casual games
4. Off-chain account management and points system
5. Dual token model
6. In-game utility items as non-fungible tokens (NFTs)
7. User-acquired NFTs for in-platform utility
8. Wallet accounts abstraction via social media plug-in
9. Fiat on-ramp
10. Points shop for off-chain purchases of digital goods

In this Litepaper, we introduce each of the listed components and further showcase how each component is designed to serve its unique purpose.

The first user action on DuckGang is to stake the $DUCK token. Upon entering the DuckGang platform, users are presented with 3 staking vault options. Each vault is unique, with varying risk-to-reward ratios. The vaults are presented as below:

The principle protection notes how much percentage of the user’s staked funds are protected from debasing. Those who have staked in “coop” will enjoy the non-existence of debasing on their stakes, yet will receive only a low yield rate on their principle. On the other hand, those who have staked in the “pond” will risk losing up to 40% of their principle due to debasing, yet will enjoy the highest yield rate on their principle.

Unlike the traditional debase staking where the user’s principle bleeds slowly at a given rate, DuckGang’s debase staking is unpredictable, truly random, while verifiable. The “lost” stake from the debase staking is then distributed to the users who have one of the Beasts in-game NFT items.

In order to make debase staking unpredictable and truly random, DuckGang has implemented Random Event Triggers (RETs) in the platform. RETs are a derivative of the pre-existing framework of Verifiable Random Function (VRF). Unlike a VRF that is able to add randomness to a function, RETs monitor the blockchain and trigger a pre-set action when the random factor is detected. The random factor could be a unique, undisclosed value in the hexadecimal data or a unique numerical sequence detected in a randomly selected transaction at a target block. Similar to a VRF, RETs are able to provide on-chain proof of its true randomness after the event has happened, ensuring that the event trigger’s random occurrence can be fully verifiable by anyone.

The RETs are pre-programmed to trigger the “steal” function, in which up to 20% of the staked user assets in the “farm” and up to 40% of the staked user assets in the “pond” are deducted and distributed to the Beasts in-game NFT holders.

Despite the technical challenges in building DuckGang, one of the most demanding tasks is to define what is “fun” due to the hyper-subjective nature of humor. This is why pre-existing GameFi projects in Web3 may have spent millions of dollars on developing single, triple-A games yet still fail to gather a consistent player base. At DuckGang, we have decided to take an alternative approach by creating a series of hyper-casual games. This series of hyper-casual games is designed to fit every skill level and appetite and ensure that there are at least a few games offered by DuckGang that each user finds enjoyable.

Some examples of the hyper-casual games from DuckGang include Duck Dash which is a combination of Flappy Bird and the Google Chrome dinosaur game in game logic and functions, and Memory which involves finding matching cards based on the user’s memory ability. Other than these, there are more gamble-based games such as Roulette and other collaborative, game-theory-based games as well.

Ultimately, DuckGang aims to launch DuckGang Season 1 with 4 games in total offering, with each consecutive season introducing more games to the DuckGang portal.

In order to provide an optimal gaming experience, it is necessary that certain aspects of the gaming is brought off-chain rather than on-chain. While the Sei V2 blockchain boasts incredible speed and cheap gas fees, it is simply good practice to be future-oriented and mitigate for any changes in the state of the chain. This is why DuckGang is introducing off-chain accounts management.

Off-chain accounts management is a combined method of tracking off-chain user activity and information and reflecting that to on-chain data. When a user joins DuckGang for the first time, the user is requested to connect a blockchain wallet in order to start playing the games. While this action connects the user’s session to an on-chain wallet, the data from the specific session is stored off-chain. Hence, the game server is securely and accurately record the off-chain session data and link it to an on-chain wallet. This specific combination enables the users to continuously play different games without having to wait for on-chain transactions or requiring gas fee. Therefore, the games are truly free to play.

The points system serves as a unique parameter that allows for the off-chain user account management to link to on-chain rewards at a dynamic ratio. The off-chain game session actions are calculated in points. These point data communicate with the DuckGang smart contract at a regular interval and update the data connected to the user’s on-chain wallet. Then, users are free to spend the points at the DuckGang Shop for various digital goods, lottery tickets, gift cards, and discount codes. Alternatively, users may convert the points to $EGG tokens. The points-to-EGG ratio is dynamic, creating a system where community events such as boost season can occur, in which users receive a higher points-to-EGG ratio and are further incentivized to participate in DuckGang.

A tokenomics system that ensures both sustainability and scalability is essential for any projects within the Web3 ecosystem yet is even more important for projects in the DeFi and GameFi space that rely heavily on user incentivization. For DuckGang, the dual token model of $DUCK and $EGG ensures both longevity and fluidity for the platform and the users.

1. The $DUCK token
   
   $DUCK is the native token of DuckGang and is used for staking and governance. It is also the only one of the two tokens that will be listed on both decentralized exchanges (DEXes) and centralized exchanges (CEXes), providing an avenue for future users to enter DuckGang, and current users to realize the earnings from activities within DuckGang. $DUCK has a fixed initial supply.
2. The $EGG token
   
   $EGG is the secondary utility token of DuckGang and is used as a bridge between the in-game points and $DUCK. While not listed on the secondary market, $EGG serves an important role in allowing users to convert their in-game points into tokens. Users with the DuckGang PFP NFT will be able to convert their in-game points into $EGG and incubate $EGG into $DUCK. Moreover, $EGG will be the payout currency to fulfill the APY for the users who stake $DUCK. $EGG has a limited initial supply and can be earned only by in-game activities.

The dual token system interacts with each other in a dynamic manner in order to ensure that early users and continuous users receive additional benefits while the potential inflation of the token and the dilution of the native value of the token by extension can be addressed effectively. Both $DUCK and $EGG are programmed to have a consistent daily distribution amount, while the points-to-$EGG ratio is dynamically adjusted. This creates an experience in which those who participate in DuckGang during the early days can receive a significantly higher points-to-$EGG ratio and thus convert a smaller number of points to a larger number of $EGG, and be able to incubate the $EGG into $DUCK at a preferable rate. Alternatively, at the height of DuckGang, as the total number of in-game points generated by users increases, the points-to-$EGG ratio would be curbed, protecting the over-inflation of $EGG, encouraging the acquisition of $DUCK, while managing the potential outflow of $DUCK to the secondary market.

The bonding curve between the daily $EGG distribution and the daily $DUCK distribution in the entire server can be noted in the following way:

,where

represents the number of $EGG tokens required to acquire 1 $DUCK token,

k represents a constant value,

m is the constant that determines the rate of increase,

e is the base of a natural logarithm,

is the current supply of $EGG tokens.

The simple exponential bonding curve formula determines how many $EGG tokens are required to acquire 1 $DUCK token. The bonding curve allows the initial conversion ratio to be 1 to 1 between $EGG and $DUCK and finds the natural conversion ratio point based on the activities within the platform. This approach allows the value of $DUCK to be protected from value dilution while providing fair value to the $EGG token based on the user’s activities on the platform rather than an arbitrarily dictated value.

Throughout the gameplay, users will be given a chance to discover and mint in-game utility items as NFTs. While these items are not unique in traits, none of the items will be pre-minted. Hence, each in-game NFT possesses inherent rarity due to the limited market circulation of each item. Some of the planned in-game items are as follows:

Fox: Fox NFT holders receive a weighted distribution of the stakes debased from the “farm” staking vault upon the trigger of “steal” RET.

Bear: Bear NFT holders receive a weighted distribution of the stakes debased from the “pond” staking vault upon the trigger of “steal” RET.

Goose: Goose NFT holders receive a monthly revenue share from DuckGang in the form of USDT.

Frying Pan: Frying pan NFT holders can perform the unique action of “cooking” the $EGG into a Fried Egg NFT. The Fried Egg NFT enjoys extremely volatile and speculative prices in the centralized, in-game marketplace where holders must speculate on the day-to-day Fried Egg NFT price determined by the server to determine when to sell and lock in the profits. The system is similar to the turnips in the game “Animal Crossing”.

Mandarin Duck: Mandarin Duck NFT holders have the unique ability to protect stakes from debasing events (“steal” events). The Mandarin Duck NFT holders can designate a limited number of wallets that will be protected from the debasing events, thus keeping a select few users from the Fox and the Bears.

As DuckGang’s slogan suggests, DuckGang pays all users to play. These payments are done in the form of points, that all users may use in the shop to purchase various digital goods. However, DuckGang also believes in creating certain exclusivity for the core members. This is done through the user-acquired NFTs in the form of profile pictures (PFPs) NFTs. The users who have purchased the PFP NFTs will enjoy the unique ability to convert their in-game points to $EGG, and ultimately $DUCK.

The PFP NFTs will be released in 3 tiers, with each tier being released at a different mint price and accompanying different levels of benefits. Each tier has a fixed, limited supply to ensure that both the PFP NFT collections, $EGG and $DUCK do not become overdiluted.

Tier 1: 5000 items, no additional boost
Tier 2: 3000 items, 1.5x on winnings
Tier 3: 2000 items, 2x on winnings

The minting price will be publicly announced at a later date. Those who have listed the PFP NFT on the secondary market will not receive the boost, and will not have the ability to convert the in-game points to tokens until the item has been unlisted.

One of the primary goals of DuckGang is to convert Web2 users with moderate interest in crypto to easily be onboarded to Web3 through hyper-casual games. While there have been many notable efforts on the Web3 gaming side, the Web3 games tend to overlook an important hurdle for Web2 casual gamers to convert to Web3 - maintaining and managing a self-custody wallet.

The development of MetaMask and other similar self-custody wallet services have made the onboarding process relatively easier compared to the early days of Web3, yet the need to maintain seed phrases, private keys, and the complete reliance on an individual’s personal sense of security to keep the wallet safe may not be an optimal fit, especially for those who are used to the Web2 method of user account management.

DuckGang proposes a revolutionary method to allow users to enjoy a fully self-custodial wallet without having to remember their passwords or write down the seed phrase. Moreover, the onboarding process is extremely simple, as they are required to only link their social media account and craft a 6-digit PIN code, similar to traditional online banking. This information is then processed through DuckGang’s in-house built VRF (Verifiable Random Function) to generate a wallet and allow the user to essentially use a unique combination of the social media account and the 6-digit PIN as a root of a private key to continue to use the generated wallet with ease.

The process diagram of the DuckGang Social Account Wallet Abstraction is as shown below.

DuckGang aims to provide the full onboarding experience for all new users, with particular attention to Web2 users with little to no previous experience in crypto, along with Web3 users who may not have used the Sei V2 blockchain before. The fiat on-ramp provided by the partners serves as a straightforward option for both users to top up their wallets easily using payment methods such as Visa, Mastercard, Paypal, and more.

In order to meet the highest of the regulatory requirements, DuckGang is working with third-party service providers for the fiat on-ramp, and will not store any private, identifiable user information and data. Moreover, DuckGang plans to acquire various licenses to future-proof the fiat on-ramp from further regulations as well.

While DuckGang pays to play, not everyone is paid out in equal currency. The users who have the exclusive DuckGang PFP NFTs reserve the sole right to convert their in-game points to $EGG tokens, and to incubate the $EGG tokens into $DUCK tokens. For those users who still enjoy DuckGang and its offers yet do not have the PFP NFTs, they can still enjoy the points shop.

The Points Shop is an aggregator marketplace for various digital goods and services that the DuckGang points holders. By spending their points, users are able to purchase digital goods ranging from gift cards to discount codes. Moreover, DuckGang plans to sponsor exciting events in the Points Shop with monthly offers, ranging from physical goods such as gaming consoles and mobile phones to digital offers where users can spend points to secure lottery tickets and win significant prizes in major cryptocurrencies such as SEI, USDT, USDC, ETH, and more.

So, what are you waiting for? It's time to join the DuckGang flock and ride the wave of crypto innovation. With its unique blend of casual gaming, NFTs, big investors, and DeFi, DuckGang is rewriting the rulebook and paving the way for a future where crypto is fun, accessible, and most importantly, rewarding for everyone! 

DuckGang is taking Web2 to Web3 and we’re egg-cited to have you join the gang 🚀🦆

PLEASE READ THE ENTIRETY OF THIS "LEGAL DISCLAIMER" SECTION CAREFULLY.NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, BUSINESS OR TAX ADVICE AND YOU ARE STRONGLY ADVISED TO CONSULT YOUR OWN LEGAL, FINANCIAL, TAX OR OTHER PROFESSIONAL ADVISORS) BEFORE ENGAGING IN ANY ACTIVITY IN CONNECTION HEREWITH, NEITHER DUCKGANG (THE PROJECT), ANY OF THE PROJECT EARLY CONTRIBUTORS (DUCKGANG EARLY CONTRIBUTORS) WHO HAVE WORKED ON THE DUCKGANG ECOSYSTEM (AS DEFINED HEREIN) OR PROJECT TO DEVELOP THE DUCKGANG ECOSYSTEM IN ANY WAY WHATSOEVER, ANY DISTRIBUTOR AND/OR VENDOR OF DUCKGANG TOKENS (OR SUCH OTHER RE-NAMED OR SUCCESSOR TICKER CODE OR NAME OF SUCH TOKENS) (THE DISTRIBUTOR), NOR ANY SERVICE PROVIDER SHALL BE LIABLE FOR ANY KIND OF DIRECT OR INDIRECT DAMAGE OR LOSS WHATSOEVER WHICH YOU MAY SUFFER IN CONNECTION WITH ACCESSING THE PAPER, DECK OR MATERIAL RELATING TO DUCKGANG (THE TOKEN DOCUMENTATION) OR ANY OTHER CONTENTS AVAILABLE IN THE DUCKGANG.COM WEBSITE OR THE DUCKPOND PORTAL (THEWEBSITE, INCLUDING ANY SUB-DOMAINS THEREON) OR ANY OTHER WEBSITES OR MATERIALS PUBLISHED OR COMMUNICATED BY THE COMPANY OR ITS REPRESENTATIVES FROM TIME TO TIME.

Project purpose: You agree that you are acquiring DUCK (DUCKGANG) to participate in the DUCKGANG ecosystem and to obtain services on the ecosystem thereon. The Company, the Distributor, and their respective affiliates would develop and contribute to the underlying source code for the DUCKGANG ecosystem, DUCKGANG is a utility token. The Company is acting solely as an arms' length third party in relation to the DUCKGANG distribution, and not in the capacity as a financial advisor or fiduciary of any person with regard to the distribution of DUCKGANG.

By accessing DUCKGANG, social media, the website, the token, the gaming portal found on Duckgang.com, or via any 3rd party you understand and agree that crypto is a high-risk environment and the chances of loss are greater than gain. The purpose of DUCKGANG is purely to assist the ecosystem upon which DUCK and EGG tokens are purely used for utility purposes.

Nature of this Litepaper and DuckGang Token Documentation: The Token Documentation is purely a conceptual paper that articulates some of the main design principles and ideas for the creation of a digital token to be known as DUCK. The Token Documentation and the Website are intended purely for general informational purposes only and do not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, any offer to sell any product, item, or asset (whether digital or otherwise), or any offer to engage in business with any external individual or entity provided in said documentation in any form or way. The information herein may not be exhaustive and does not imply any element of, or solicit in any way, a legally binding or contractual relationship. There is no assurance as to the accuracy or completeness of such information and no representation, warranty, or undertaking is or purported to be provided as to the accuracy or completeness of such information. Where the Token Documentation or the Website includes information that has been obtained from third-party sources, the Company, the Distributor, their respective affiliates, and/or DuckGang early contributors have not independently verified the accuracy or completeness of such information. Further, you acknowledge that the roadmap, Duck Pond Gaming Portal, the project development roadmap, network functionality, and gaming connectivity are all subject to change and that the Token Documentation or the Website may become outdated as a result; and neither the Company nor the Distributor is under any obligation to update or correct this document in connection therewith. Validity of Token Documentation and Website: Nothing in the Token Documentation or the Website constitutes any offer by the Company, the Distributor, or the DuckGang early contributors to sell any DuckGang (as defined herein) nor shall it or any part of it nor the fact of its presentation form the basis of, or be relied upon in connection with, any contract or investment decision. Nothing contained in the Token Documentation or the Website is or may be relied upon as a promise, representation, or undertaking as to the future performance of the DuckGang ecosystem. The agreement between the Distributor (or any third party) and you, in relation to any distribution or transfer of DuckGang, is to be governed only by separate terms and conditions. DuckGang therefore takes no responsibility and makes no promises in regards to financial advice and never will, any belief in any sort of promise, financial information or otherwise should be disregarded.

Restrictions: By accessing the DuckGang website and the DuckGang gaming portal “Duck Pond” you understand and agree that you are living and operating in a jurisdiction that allows such access and you are governed by your regional, state and national laws. If your region does not allow cryptocurrency or the dealing of blockchain transactions or has outlawed or restricted the holding, trading, usage or access of such technology, you are not allowed to use DuckGang or converse with any of the DuckGang offerings, either token based or not. 

You acknowledge, understand and agree that you are not eligible to participate in the distribution of DUCK token or DUCKGANG as an entity, platform or movement if you are a citizen, national, resident (tax or otherwise), domiciliary and/or green card holder of a geographic area or country (i) where it is likely that the distribution of DUCKGANG ‘DUCK’ would be construed as the sale of a security (howsoever named), financial service or investment product and/or (ji) where participation in token distributions is prohibited by applicable law, decree, regulation, treaty, or administrative act including without limitation the United States of America, Canada, and the People's Republic of China): and to this effect you agree to provide all such identity verification document when requested in order for the relevant checks to be carried out.