Crypto 101: IFO (Initial Farm Offering) | Instructions to participate in IFO on Pancakeswap

August 10, 2022 - Around 5 mins mins to read

Initial Farm Offering (IFO) is a fundraising model that helps new DeFi projects raise capital by participating in pre-sales events hosted after stern project vetting by decentralized exchanges.

Background of the birth of IFO

Since the advent of cryptocurrencies more than 12 years ago, significant developments have changed the types of fundraising events that have been used, such as before ICO projects relied heavily on backing. of venture capitalists (VCs), this is a slow and complicated process. The ICO stage has revolutionized the way funds are raised, cutting short the process of attracting venture capitalists (VCs). The initial system for acquiring VC’s has proven to be a lengthy process for blockchain-based projects.

To solve this problem, exchanges have stepped in to help projects raise funds in a safe and transparent way, one of which is the Binance exchange.

Recently, the wave has turned to the decentralized finance (De-Fi) sector of the cryptocurrency market. The most prominently used Dapp platforms are DEX platforms like PancakeSwap and StreetSwap, which have introduced an innovative token issuance service called IFO.

What is Initial Farm Offering (IFO)?

IFO is a brand new type of fundraising that uses farming events to raise funds for participating projects. Users will need to provide liquidity to the BNB-CAKE pool to receive the corresponding LP token, and then participate in the IFO with this LP token.

With the help of IFO, users can participate in a “pre-sale” held through a DEX to receive tokens before listing on their respective exchanges. Usually, DEXs will thoroughly vet projects before holding an IFO. Although the vetting process has passed, this does not guarantee the success or integrity of the token, as users should always consider scrutiny beyond BSCNews when making their investment decisions. The IFO process benefits even new projects, PancakeSwap, and its users. The IFO distributes farming rewards to PancakeSwap users while also providing new projects with an incentive liquidity pool on PancakeSwap. This system allows to generate sustainable profits for PancakeSwap users and it creates initial liquidity for the respective token. On top of that, half of the funds raised will be burned in CAKE if the sale is complete.

IFO has similar characteristics and is different from the two popular forms of fundraising today, IEO and ICO. All three of these methods are ways to raise funds for crypto projects. These methods of issuing tokens are usually done on an exchange, sometimes on project websites, or other “pre-sale” methods are used.

How to join IFO

Steps to join IFO on PancakeSwap:

Step 1: Visit https://PancakeSwap.finance/profile, to complete the basic information before joining IFO

Step 2: Stake CAKE and BNB into the liquidity pool to receive LP tokens.

Step 3: When the IFO is happening, users can use their LP tokens to buy tokens that are on sale.

The project recommends users join the Basic Sale first

Step 4: After the IFO ends, the user can receive the purchased tokens and, the unused CAKE-BNB LP tokens will be returned to the user’s wallet.

About Meta Apes

Meta Apes is a Free-to-play and Play-to-earn MMO game. This is the first generation of projects developed and run on BAS, the sidechain of the BNB Chain.

The game is set in a post-apocalyptic world where only monkeys rule. And this species is in the process of space exploration.

The brothers will play as a primate and work closely with their Gang to become the strongest and win the space race.

Highlights of Meta Apes

In the game, players will cooperate with many different teammates to reach the top.

Specifically, the main features of this game are as follows:

Building: Grow your city and army through management, production, training, and research.
Competition: Compete PvP, and PvE, and participate in challenges, and mini-games.
Community: Collaborate and create strategies with teammates
Explore: Go around the map and discover the unexpected.

In addition, players can also own NFT warriors to play games and explore.

In addition to attractive gameplay, Meta Apes is also one of the first projects running on BAS (BNB Sidechain). From here, it is possible to hypothesize that the project can be supported by the BNB team.

Difference between Basic Sale and Unlimited Sale

In the Basic Sale pool, users can deposit up to about 100 USD in CAKE-BNB LP tokens. PancakeSwap will calculate the maximum amount of LP about 30 minutes before each IFO. Basic Sale does not require a participation fee.

Unlimited Sale has no limit on the number of CAKE-BNB LP Tokens a user can deposit. However, users will have to pay a certain fee if they want to participate. The participation fee will start at 1%, and this fee will probably decrease based on the amount of CAKE-BNB LP tokens users deposit.

Verdict

PancakeSwap has continued to innovate on its platform with the launch of the IFO feature. This system rewards both new projects and PancakeSwap users as the process creates liquidity for new projects and burns CAKE tokens. In general, IFOs are used to raise funds for new decentralized protocols on BSC. This system provides a seamless way for new projects to launch into the DeFi space.

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary, and does not constitute investment advice. We encourage you to do your own research before investing.

Issac

Coincu Ventures

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