What are Initial Farm Offerings (IFO) on PancakeSwap? Instructions to join IFO
The article guides you how to participate in Initial Farm Offering (IFO) on PancakeSwap in the most detailed and easy to understand way.
The IDO craze has not ended, but PancakeSwap – the top 1 DEX of Binance Smart Chain has launched a rather special new type of fundraising: Initial Farm Offering (IFO).
So what is an IFO? What are the current and potential figures? All in the next post.
What is IFO?
IFO is essentially a form of fundraising similar to IDO, but the asset used to participate in the fundraising will be LP token from the Pool CAKE – BNB liquidity supply.
If on other platforms, users have to buy native tokens like POLS, DAO, … stake to participate in Pool DO, then with PancakeSwap, users only need to provide a large enough liquidity to participate. without relying on luck.
Thus, to participate in IFO on Pancake, users are required to know the basic operations of this platform including Swap & Add Liquidity (add liquidity) to receive LP tokens (CAKE-BNB). This I think is quite good, when it requires IFO players to be a real user of Pancake, not just speculating on IDO, IFO.
How to join
- Step 1: Visit here to learn about the Pool you want to join.
- Step 2: Before Sale, you buy BNB, CAKE, then provide liquidity to Pool CAKE-BNB to receive CAKE-BNB LP tokens. The user will opt-in to Bas.
- Step 3: During Sale, visit here again. Users will choose to participate in Basic Sale or Unlimited Sale, commit CAKE-BNB LP tokens to buy IFO tokens.
- Step 4: After Sale, you receive IFO token, the balance will be refunded. In case of Overflow, you can Unstake CAKE-BNB LP tokens back.
So what is Overflow?
To put it simply, Overflow is the amount of capital invested by you will be proportional to the number of tokens received, the pool will be divided by a percentage based on that capital. Users will get any remaining funds back when they claim their tokens after the sale ends. If your contribution is too small compared to the total value of the Pool, it is highly likely that you will not receive the token, and the LP token will be refunded.
What if the project does not raise enough capital?
The token sale will still take place as usual and all contributed funds will be used.
Projects that have been raising capital on PancakeSwap through IFO
Up to now, PancakeSwap has only 8 projects that have done IFO, which are: BLink, Ditto, Tenet, Helmet, Soteria, Berry, YieldWatch, Belt.fi. The next project to be IFO is Horinzon.
In the next post, I will evaluate these projects in detail, as well as the potential of IFO. But if you want to see IDO data for reference for the upcoming IFO, you can refer to the following articles:
- Learn more about Coinlist
- Learn more about IDO
A few things to know about IFO
- With Basic Sale, you can commit CAKE-BNB LP with a maximum value of $100. The project will calculate the maximum amount of LP about 30 minutes before each IFO. Basic Sale has no joining fee.
- With Unlimited Sale, there is no limit to the number of CAKE-BNB LP Tokens you want to commit. However, there is a fee to join: 1%. However, this fee will decrease if more people join the Unlimited Sale.
In addition, you can participate in both types if the capital is large. If your capital is small, you can join the Basic Sale and it’s enough, but there’s no cost, or you can use multiple accounts.
CAKE-BNB LP from the participation fee will be resolved, then the project will use this BNB to buy the equivalent amount of CAKE, then finally burn all these CAKE.
You need to contribute at least about CAKE-BNB LP with a value of ~ $ 10 for one type of Sale (Basic Sale, Unlimited Sale). It doesn’t matter if you participate in 1 or 2 types of Sale, as long as the sum of both meets the requirements.
Binance Smart Chain is currently emerging as a potential solution to Ethereum’s high gas fees.
Therefore, PancakeSwap took advantage of this opportunity to create its own IDO based on the general trend of the whole Crypto.
But the innovative point here is that the project uses a new form: using LP tokens instead of USDT, or BUSD.
With this method, in addition to the high price of CAKE, the LP of Pool CAKE-BNB also increased significantly, leading to today’s TVL of PancakeSwap officially flip Uniswap – the monument of the DEX array.
In your opinion, will Uniswap let its opponent pass so easily? Or how many more IFOs will PancakeSwap hold? You can comment your opinion below.