Binance Smart Chain (BSC) based DEX, Pancakeswap has launched its new IFO (2.0). On Monday 12, April 2021, Pancakeswap launched its Initial Farm Offering 2.0 under a new format open to users with an active PancakeSwap profile.
PancakeSwap Updates IFO System
Cryptocurrencies revolutionized the world of fundraising with Initial Coin Offering (ICOs) and Initial Exchange Offerings (IEOs). However, DeFi has brought new meaning to the Term Fundraising with Initial Farm Offering (IFOs). Binance Smart Chain (BSC) based DEX, Pancakeswap has launched its new IFO (2.0). On Monday 12, April 2021, Pancakeswap launched its Initial Farm Offering 2.0 under a new format open to users with an active PancakeSwap profile. These IFOs can help users participate in the presales of projects held on the DEX before they are listed on other exchanges. Pancakeswap IFO 2.0 is open to two types of users (Basic and Unlimited). The Basic session will feature individual investors with little funds while the Whales or investors participating in the “Unlimited” session will pay more for their tokens than those that participate in the “Basic” session.
To participate in these IFOs, projects are vetted before the hosting. Although the vetting process does not ensure the integrity or the success of the project, projects still have to fulfill certain requirements. Pancakeswap, its users, and new projects both benefit from the IFO process benefits. Pancakeswap users are allocated farming rewards from the IFO while also providing the new project with an incentivized liquidity pool on Pancakeswap. The token in question gets initial liquidity while Pancakeswap users get yields in return. At the end of the fundraising, half of the funds raised are burned in CAKE.
How to Participate in the PancakeSwap IFO 2.0
There are two different sessions available in participating in the IFO 2.0: Basic and Unlimited.
The Basic Session will account for about 30% of the total sale. Each user can contribute a maximum of $100 in CAKE-BNB LP tokens. Basic session investors won’t have to contend with Whales as the final allocation depends on the total amount of funds raised in the session. In the IFO 2.0, investors in the Basic session will get a larger allocation for a smaller commitment than they did in the previous IFO. For the ‘Unlimited’ session, there is no limit to the amount that can be contributed. However, their contributions will account for 70% of the total sale and come with a 1% participation fee.
According to PancakeSwap, “The participation fee collected goes straight to the kitchen and is yeeted into the fire. The CAKE-BNB LP tokens from the participation fee will be decomposed, then we will use the BNB portion to market buy the CAKE equivalent, then finally throw all of the CAKE in for the weekly burn”.
Participants have to buy CAKE and BNB tokens before Sale and then get CAKE-BNB LP tokens by adding CAKE and BNB liquidity. When the sale goes live, participants have to commit their CAKE-BNB LP tokens to buy the IFO tokens at pancakeswap.finance/ifo. Once the IFO is completed, participants can claim the IFO tokens they’ve bought and then unspent funds will be transferred back to you. There is also an opportunity for users to unstake remaining CAKE-BNB LP tokens in the case of an overflow. The Overflow method allows participants to subscribe to the IFO for as little or as much as they want. However, their final allocation will be determined by the number of funds they put in and they will receive back any leftover funds when they claim their tokens after the sale. The downside is that users who commit a very little amount of LP tokens may not receive any token at all. They may still reclaim all the CAKE-BNB LP tokens they committed.
A plethora of projects has successfully utilized Pancakeswap’s IFO such as the Horizon Protocol, a project which serves as collateral for the synthesis of tradable synthetic assets (zAssets). The IFO token sale started on April 15th and the Unlimited pool is already 100,000%+ oversubscribed at the time of writing. PancakeSwap aims to raise $2.5 million in CAKE-BNB LP tokens by selling 10 million HZN tokens.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.