Checkpoint Exchange

The Points Exchange is Checkpoint’s core trading platform where users can buy and sell points before they become official tokens. All trades are secured with collateral to ensure both sellers and buyers fulfill their obligations on settlement.

Checkpoint Exchange is running at the moment on testnet

Checkpoint Exchange alpha version application screenshot, light theme

Checkpoint Exchange alpha version application screenshot, dark theme

An important part of Checkpoint is that all trades are secured with collateral. This gives the points deposited trading value. The collateral is kept in an escrow contract until settlement. The collateral is typically a stablecoin like USDC, but can be any whitelisted token.

Market Trading

Learn more about the Exchange inner workings.

Creating and Filling Offers

The market part of the exchange is a decentralized orderbook where users can either create or fill offers.

Creating a Sell Offer

Selling points requires users to have points to sell. For this, the user needs to have points on a platform that has been integrated to the Checkpoint Ecosystem and a market needs to be available for points to be traded.

Deposit Points

Users that want to sell points need to deposit their offchain points to be onchain. For this, the user needs to interact with the Deposit contract and verify that they have points to deposit.When a user deposits points, they receive a non-transferable NFT that represents the deposit onchain. This NFT becomes a record for users that they have onchain points to trade.A user needs to have enough available points to be able to make an offer.Learn more about Checkpoint NFTs →

Create a Sell Offer

After the user has deposited points, they can place a sell offer. A sell offer requires:

Amount of points to sell
Price of the points sold
Collateral backing the sell offer

The collateral amount is separate from the price and acts as a security deposit. When creating an offer, users must provide collateral upfront. This collateral is held in escrow until settlement.Offer StatusOffers have different statuses and behaviors depending on their state.

Created: Your offer is live and available for buyers to fill
Filled: Your offer has been completely filled by buyers
Partially Filled: Some buyers have filled part of your offer
Settled: The offer has been settled
Cancelled: You have cancelled the offer

Offer ManagementOnce you have created a sell offer, you can manage it through the UI.

You can only cancel offers that are in “Created” status
Partially filled offers cannot be cancelled, they must be settled
When you cancel an offer, you pay a cancellation fee

When cancelling your collateral is returned minus protocol fees and your points become available again for new offers.

Balance change can trigger Shortfall Event, enabling buyers to cancel offers within a time frame

Seller Settlement

Settlement is the final phase where you receive payment for your sold points. Settlement occurs when a protocol’s token launches and becomes available for distribution.When Settlement begins

Settlement is triggered when a protocol’s token launches
No new offers can be created once settlement is active
Your existing offers must be settled according to their terms

Settlement Process for Sellers

You must transfer the protocol tokens to the settlement contract
Your collateral is returned to you
You receive payment for the points you sold
A settlement fee is deducted from your payment

Overdue settlement result in additional fees and partial or total loss of the collateral

Learn more about settlement →

Filling a Buy Offer

Buying points on Checkpoint Exchange means filling existing sell offers created by other users. You can either fill an entire offer or partially fill it with any amount you choose.

Finding Offers

Browse the orderbook to find offers for the points you want to buy. In the UI some of the elements you will see are

How many points are available
Price per point or total in USDC
How much has already been filled (if any)

You cannot fill your own offers, you can only buy from other users’ offers

Choosing Fill Type

After choosing an offer, you will be able to fill partially or the entire offer. This is based on how much USDC you are committing to fill. A 50% fill will also warrant 50% of the escrow tokens associated to the offer selected.This system allows for flexible trading where you can buy exactly the amount of points you want, regardless of the offer size.

Checkpoint does not currently have a secondary market for escrow tokens (chXXX)

What you receive

After filling an offer, the seller’s NFT will mint escrow tokens (chXXX) proportional to the amount filled. These escrow tokens are a 1:1 on the points the seller has deposited. However, this is not a 1:1 on tokens to be received on settlement.Escrow tokens are not TGE TokensThe escrow tokens (chXXX) are not representative of the tokens issued on TGE by the protocol, but the proportion of the user’s claim to their TGE tokens.

The escrow tokens (chXXX) are not representative to the tokens issued on TGE by the protocol, but the proportion of the user claim to their TGE tokens

Learn more about escrow settlement convertion →

Buyer Settlement

Settlement is the final phase where you receive the actual protocol tokens for your purchased points. Settlement occurs when a protocol’s token launches and becomes available for distribution.Settlement Process for Buyers

You can claim your protocol tokens using your escrow tokens
The system calculates your share based on your escrow token balance
You receive the actual protocol tokens (not more escrow tokens)
Your escrow tokens are burned in the process

Overdue Settlement

If a seller fails to provide their protocol tokens during settlement, they enter the “overdue” stage
In this case, a buyer can claim partial or total collateral of the seller minus protocol fees

Cross-Chain Settlement

Settlement can occur on different chains than where you bought the points
You’ll receive your protocol tokens on the appropriate chain
You may need to claim tokens on a different chain than where you made the purchase

Learn more about settlement →