Instructions for joining IFO on Pancakeswap

Since the introduction 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 were heavily reliant on backing. VC, this is a slow and complicated process. The ICO phase revolutionized the way funds are raised, shortening the process of attracting venture capitalists (VC). The original system to get VC’s has proven to be a lengthy process for blockchain-based projects.

To address this issue, exchanges have stepped in to help fundraising projects safely and transparently, most notably the Binance exchange.

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

What is an Initial Farm Offering (IFO)?

IFO is a whole new type of fundraising activity 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 join IFO with this LP token.

With the help of IFO, users can participate in a “pre-sale” held through the DEX to receive tokens before being listed on the respective exchanges. Usually, DEXs will thoroughly check projects before organizing IFO. Although it has passed the verification process, this does not guarantee the success or integrity of the token, as users must always consider outside BSCNews carefully when making their investment decisions. The IFO process benefits both new projects, PancakeSwap, and its users. IFO allocates farming rewards to PancakeSwap users and gives new projects an incentive to liquidity 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 money raised will be burned in CAKE if the sale is completed.

IFO has similar characteristics and is different from the two popular fundraising methods today, IEO and ICO. All three of these methods are ways to raise funds for crypto projects. These token issuance methods are usually performed 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: Go to https://PancakeSwap.finance/profile, to complete the basic information before joining IFO

Step 2: Stake CAKE and BNB go to the liquidity pool to receive LP token.

Step 3: While IFO is in progress, users can use their LP token to buy tokens that are being sold for sale.

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

Difference between Basic Sale and Unlimited Sale

In the Basic Sale pool, users can deposit up to about 100 USD CAKE-BNB LP tokens. PancakeSwap will calculate the maximum LP amount approximately 30 minutes before each IFO. There is no entry fee for Basic Sale.

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

Summary

PancakeSwap continued to innovate on their platform with the launch of the IFO feature. The system rewards both new projects and PancakeSwap users as the process creates liquidity for new projects and burns CAKE tokens. Overall, IFO is used to fund new decentralized protocols on BSC. This system provides a seamless way for new projects to launch into the DeFi space.

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