1The Problem
Billions of dollars in tokens sit locked in vesting contracts across the crypto ecosystem. Team allocations, investor lockups, contributor grants — all illiquid until the vesting schedule completes, which can take months or years.
Holders who need liquidity before their tokens unlock have limited options:
- ✗OTC brokers on Telegram — no escrow, counterparty risk, no privacy, manual coordination
- ✗Public listings — signal that insiders are selling, which tanks the token price and creates social/legal risk
- ✗Wait — opportunity cost of capital locked for months or years
On the buy side, there's unmet demand for discounted token exposure. Investors who believe in a project would gladly buy locked tokens at 20-50% below market — but there's no trustworthy, private way to do it.
2The Solution
Cliff Protocol is a decentralized marketplace where holders of vested tokens can sell their future token streams to buyers at a discount — privately, with trustless escrow protection, and automated delivery as tokens vest.
Private
Deal terms encrypted on-chain. Stealth addresses protect both parties.
Trustless
Smart contract escrow. No intermediaries holding funds.
Automated
Tokens delivered automatically as they vest. No manual coordination.
3How It Works
Seller Lists a Position
A token holder lists their vesting position — specifying the token, amount, price, and delivery schedule. The listing is encrypted on-chain; only the protocol can read the terms.
Buyers Pool Funds
Multiple buyers contribute USDC to a crowdfunding pool. When the pool reaches its funding threshold, the deal activates. This democratizes access — you don't need to be a whale to participate.
Tokens Are Delivered
As tokens vest according to the original schedule, the protocol automatically delivers them to buyers' stealth addresses — unique, private addresses that can't be linked to their identity.
Seller Gets Paid
With each successful delivery, USDC is released to the seller from the escrow. A holdback mechanism protects buyers — funds are released incrementally, not all at once.
4Privacy Architecture
Privacy isn't an afterthought — it's the core value proposition. A seller listing their vesting allocation publicly signals they want to dump, which can tank the token price and trigger social consequences. Cliff Protocol solves this at the infrastructure level.
Built on Oasis Sapphire — a blockchain where smart contract state is encrypted at rest. Deal terms, contribution amounts, and participant identities are hidden from on-chain observers.
Each deal generates unique, one-time addresses for token delivery. Recipients can claim their tokens without revealing their main wallet. Based on EIP-5564.
The delivery agent runs inside a hardware-secured enclave (TEE). It can see both sides of the deal to execute deliveries, but can't exfiltrate data or be tampered with.
The result: on-chain observers see tokens moving from a vesting contract through the protocol to anonymous stealth addresses. They cannot determine who sold, who bought, how much anyone contributed, or link any stealth address to a real identity.
5Buyer Protection
Buying locked tokens requires trust that the seller will deliver. Cliff Protocol replaces trust with mechanism design:
Holdback Escrow
A percentage of buyer funds is held in escrow and released incrementally with each delivery. If the seller defaults, holdback funds are returned to buyers pro-rata.
Reputation Tiers
Sellers build reputation through successful deliveries. Higher tiers earn lower holdback requirements — rewarding reliability with better terms.
Grace Periods
If a delivery is missed, a 7-day grace period allows the seller to recover. If they don't, buyers are automatically compensated from the holdback.
Deal Grades
Deals are graded A+ through C based on terms. Higher grades (more deliveries before upfront release) offer more buyer protection at the cost of seller liquidity speed.
6Protocol Economics
The protocol charges a total fee of 2.5% per deal, split into two components:
1.0%
Activation Fee
Charged when the deal activates. Covers escrow setup and privacy infrastructure.
1.5%
Success Fee
Charged on each successful delivery. Only paid when tokens are actually delivered.
$500
Minimum Deal
Ensures profitability on small deals given multi-chain gas costs per delivery.
The fee structure aligns incentives: the protocol earns most of its revenue from successful deliveries, not upfront charges. If a seller defaults, the protocol earns less. This creates a natural incentive to maintain reliable delivery infrastructure.
7Reputation System
Sellers progress through five reputation tiers based on their delivery track record. Higher tiers mean lower holdback requirements — better terms for proven sellers.
| Tier | Requirement | Holdback | What It Means |
|---|---|---|---|
| New | First deal | 95% | Maximum protection for buyers |
| Bronze | $50K+ delivered | 85% | Proven track record |
| Silver | $250K+ delivered | 75% | Established seller |
| Gold | $1M+ delivered | 60% | Trusted by the market |
| Platinum | $5M+ delivered | 50% | Best terms available |
Tier upgrades have a 30-day cooldown to prevent manipulation. Delivery rate requirements ensure sellers maintain consistency, not just volume.
8Multi-Chain Architecture
Cliff Protocol operates across multiple chains by design:
- ◆Oasis Sapphire — privacy layer. Deal state, contribution amounts, and stealth keys are encrypted here.
- ◆Ethereum / Arbitrum / Base — liquidity layer. USDC escrow and token delivery happen on the chain where the vesting contract lives.
Sellers list tokens from any supported EVM chain. Buyers contribute USDC on that chain. The protocol coordinates cross-chain execution automatically — users don't need to bridge assets or manage multiple chains.
9Roadmap
Testnet Beta
Full protocol deployed on Sapphire Testnet + Sepolia. Open to early testers for feedback.
Security Audit
Professional audit of smart contracts and privacy infrastructure before mainnet.
Mainnet Launch
Production deployment on Sapphire Mainnet + Ethereum, Arbitrum, and Base.
Expanded Asset Support
Support for additional vesting contract formats, LP positions, and locked staking derivatives.
Get Involved
Cliff Protocol is currently in testnet beta. Follow us for updates and early access to the mainnet launch.