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VC funds often hold large token allocations locked under long vesting schedules. While these positions may be valuable on paper, they are typically illiquid for years and difficult to manage without relying on opaque OTC transactions. 1st provides a structured, approved, and liquid market for trading locked token allocations, allowing VC funds to actively manage exposure during vesting rather than waiting for unlock events, by selling future unlocks instantly for USDC.

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Liquidity during vesting

By importing SAFTs or SAFEs into 1st, VC funds can sell mirror tokens that represent future unlocks before tokens enter circulation. This enables funds to:
  • Access liquidity during vesting periods
  • Reduce exposure ahead of unlocks
  • Avoid concentrated selling at unlock events
Liquidity is provided through a live order book with professional market makers, allowing funds to trade gradually rather than through large, discrete OTC deals.

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Market-driven price discovery

Mirror token markets allow VC funds to discover a fair, market-clearing price for their locked allocations. Instead of negotiating bilateral OTC discounts, funds can sell into a transparent market where prices are determined by supply and demand across many participants. This reduces execution risk and improves price discovery for private-market positions.

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Optionality and partial execution

VC funds are not required to import or sell entire allocations. Allocations can be imported partially, and mirror tokens can be sold incrementally over time. This gives funds flexibility to manage exposure dynamically, rather than making all-or-nothing decisions around unlocks.

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Ongoing fee revenue from imported allocations

When a VC fund imports an allocation into 1st, it does not simply sell a position and exit. Unlike OTC sales, where a fund receives a one-time payment and gives up all future participation, importing an allocation into 1st entitles the fund to earn ongoing fee revenue on trading activity related to the imported amount. As mirror tokens trade over time, the importing VC fund earns a share of trading fees proportional to the allocation it has made available. This turns an otherwise idle, locked SAFT or SAFE into a recurring revenue stream. Rather than monetizing an allocation once, VC funds continue to participate economically as their allocation trades throughout the vesting period.

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Approved and compliant trading

All trading on 1st occurs with explicit project approval. Imported allocations are verified, vesting terms are fixed, and token delivery obligations are clearly defined through binding agreements. This ensures that VC funds can trade allocations in a way that is transparent, auditable, and aligned with project policies. There are no off-platform transfers, informal side agreements, or synthetic claims.