IDO Platform Introduction
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There are different opinions on the meaning of the name of IDO. This article adopts the meaning of Initial DeFi Offering, that is, the initial online issuance of the decentralized protocol.
IDO has attracted more and more attention from users in the crypto community, and it has become a more common way for new projects to launch, raise funds and acquire early users. With the help of Uniswap, Balancer, PolkaStarter, DuckStarter and other channels, project parties, especially grassroots projects, have a lower threshold and a relatively more fair distribution method, although the accompanying risks cannot be ignored.
At present, the income of IDO's projects is very good, and most of them have more than 10 times the income. And this benefit is due to the scarce quota. It is not easy to successfully obtain the quota now. However, many things require participation. If you do not participate, you will never have a chance. Some platforms can apply without any investment. Of course, this This kind of quota is very scarce, and it can be used as a lottery ticket. This article only lists the IDO platform, and everyone should consider whether to participate.
The most basic preparation for participating in IDO is the need for telegram, Twitter, etc. Most project IDOs require a whitelist, and the way to participate in the whitelist is to retweet through Twitter and join Telegram.
The benefits brought by IDO can be summarized into several points: more open and fair, fast transaction speed, sufficient liquidity, after the issuance in the primary market, the secondary market can be launched quickly. The author roughly divides it into the following channels:
Issued through the DEX platform, such as Uniswap, Balancer's LBP, SushiSwap, DODO crowdfunding pool, etc.;
Through a token issuance platform, such as PolkaStarter, DuckStarter, Bounce, Mesa, etc.;
Issued through DAO platforms, such as Dao Maker;
Other new channels to play: The ITO method created by MASK is announced and distributed with the help of social platforms such as Twitter.
Of course, there is no shortage of centralized online issuance methods, such as LaunchPad of exchanges such as Binance, CoinList, etc.
Swap emerged because of Uniswap. Although Bancor did it earlier, it was not until the liquidity mining boom that the mainstream narrative of DEX became the world of Swap. With the help of Swap or AMM, the project can easily complete the initial online issuance with the help of trading protocols such as Uniswap, also known as IUO, but this term is not commonly used.
On the Uniswap platform, there is no special module for the online issuance of new projects, but it is the same as other token trading pairs. After the project party adds liquidity to the token trading pair, they can start trading on Uniswap.
Take the above picture as an example. It is a DeGate project that will start issuing tokens on Uniswap, and has not yet added liquidity. After the project party injects the liquidity of USDCDG tokens on time, the issuance activities will start.
Due to the simplicity of Uniswap, project parties often need to create release information pages by themselves, as shown in the example below.
The AMM method is convenient and easy to use, and anyone can issue it, which reduces the threshold for participation, but also brings a series of problems that need to be dealt with.
Foremost among them is the issue of counterfeit money. Anyone can create tokens and token trading pools, which means that anyone can counterfeit them. There are many examples of this. Therefore, the issuing project party will publish the corresponding token address on its official channel for verification. This step of work, every participant can not be omitted.
Other aspects are related to the characteristics of AMM itself.
There are many projects doing IDO through Uniswap, the most recent ones are LABS, DeGate, etc. The practice of LABS is also somewhat interesting. In addition to creating an IDO token pool so that users can participate in the issuance on Uniswap, a specific token pool is created through MANTRA DAO, so that traders who participate in the market making on UNISWAP can get a lottery chance. , get extra incentives. It may also be a more interesting way to play through Uniswap + other platforms.
SushiSwap is one step closer than Uniswap, providing better support for token issuance and creation. With the help of MISO, it simplifies the process of launching new projects on SushiSwap, including token creation, liquidity pool creation, mining selection, initial issuance method ( Such as fixed price, batch auction, or Dutch auction) and other practices.
The project party completed crowdfunding on SushiSwap through MISO, and subsequent trading pairs will also be launched on Sushiswap.
According to the official introduction of MISO, MISO is a set of open source smart contracts designed to simplify the process of launching new projects on SushiSwap. MISO aims to drive new capital and transactions into Sushi by increasing SushiSwap's attractiveness as a token creator and community launch token for new projects. The goal is to create a launchpad for founders of technical and non-technical projects that will give communities and projects access to all the options they need to deploy to SushiSwap safely and successfully. MISO will serve as a personal project launch platform for the SushiSwap community, with all aspects handled through trusted open source contracts.
The current page shows that the MISO platform has not yet been launched. The current method of issuing tokens on SushiSwap is the same as that of Uniswap. However, with the launch of MISO, it can be expected to bring a wave of attention. Due to space limitations, we will choose an opportunity to introduce the MISO platform in another article.
The token issuance on Balancer is called LBP. LBP is the abbreviation of Liquid Bootstrap Pool, a liquidity startup pool. At present, LBP is becoming the standard for more and more project issuance.
A simple understanding, Uniswap and other AMMs that use 1:1 token trading pairs, the problems we have discussed above, the initial currency price will rise rapidly with a large influx of funds; Balancer does the opposite, LBP's The method allows the project party to initially set a relatively high currency price, and over time, if no one participates, the price will gradually decrease. The LBP model is a variant of the Dutch auction or reverse auction, created through smart pools.
Projects such as APY.Finance (APY), Perpetual Protocol (PREP), Furucombo (COMBO), MASK, and KINE all use the LBP model to issue tokens. Subsequent LBP will also become the choice of more projects, such as Tidal Finance, a programmable insurance market based on Polkadot, which also announced an IDO on Balancer on March 25.
The participation method is similar to the Uniswap page, directly select the corresponding trading pair (the project party will provide a link), and participate in the transaction.
Take the release of KINE on the evening of March 11, for example.
The initial set price is $4, the ratio in the initial token pool is 93:7 (KINE:USDC), and the final end weight is set at 40:60, which means that in the LBP way:
High initial price to avoid FOMO;
If user participation is low, the price of the currency will gradually decrease according to a preset method;
Of course, if users are quite enthusiastic, despite the relatively high initial price setting, users still flood in, which will also increase the price of the currency.
As shown in the figure above, the price of KINE once jumped to more than $8 after the opening yesterday. The opening price was set at $4. If no one participates, the subsequent price will automatically drop. The current price of LBP is around $3.88, staying near the opening price.
The weight composition in the token pool has also changed from 93:7 (KINE: USDC) at the beginning to about 7:3.
LBP on Balancer generally lasts about 2-3 days. After the event, the corresponding tokens will enter the regular trading pool of Balancer for trading. Since the price is at risk of falling at any time, participating in the issuance activities through Balancer LBP can alleviate the FOMO sentiment to a certain extent, but if the project is hot, it still cannot stop the pace of the scientist devil.
Polkastarter is a protocol for cross-chain token pools and auction transactions, enabling startup projects to raise funds in a decentralized and interoperable environment based on the Polkadot Network. With Polkastarter, decentralized projects can raise funds quickly and at a lower cost. Users can participate in project fundraising in a safe and compliant environment and use assets other than the current ERC20 standard.
Since most projects have set up a private distribution method, to participate in the distribution activities on the Polkastarter platform, they often need to back up their address information on the project side and obtain a whitelist before they can participate. In addition, the project party can set a fixed price for the token, which is relatively friendly, and participants do not have to face the risk of price fluctuations.
On the project page, specific project details will be listed. Before participating, you must remember to do your homework and verify the corresponding information.
Although Polkastarter has become a popular IDO platform, it should be noted that the project parties are not all high-quality projects, and they still need to do their homework.
Taking Kylin Network as an example, users need to complete multiple steps:
Through the official whitelist application channel, complete operations such as following Twitter, joining Telegram, etc., and then perform KYC certification and submit the whitelist address.
The whitelist will be synchronized to the Polkastarter platform and the winning bidders will be screened out.
After receiving the notification of whitelist approval, after the launch event starts, participate in the token event through the Polkastarter page.
Bounce is a batch auction tool based on Ethereum. It needs to set the upper limit and duration of each auction. Funds that exceed the upper limit will be bounced back to users.
The Bounce platform is divided into two categories: a decentralized auction platform that everyone can participate in, and a community-certified auction platform.
As shown in the figure, in addition to token issuance, there are multiple components of liquidity lock-up auction, NFT auction, community pool, lottery and prediction market. There are three types of token pools: fixed price, closed auction, and Dutch auction.
In addition, Bounce has a community-certified auction platform, where platform token holders jointly decide which projects are allowed to activate and participate in the sale. Compared with the decentralized auction platform, the community-authorized auction platform has a certain screening mechanism, and the project quality may be higher relatively.
To participate in the community certification auction, KYC certification and whitelist certification are required.
DuckStarter 由 DuckDAO 社区创建的发行平台。
At present, there are mainly niche projects on the platform, and there is a whitelist setting. You need to apply for a whitelist before you can participate. The specific method of obtaining the whitelist depends on the project party's own regulations. Vortex DeFi and Shadows Network are projects previously released on the DuckStarter platform.
The usage is similar to other platforms, so I won't introduce it further.
On February 11, Mask Network announced the issuance of the token MASK, which was carried out through ITO, and several other projects began to play the issuance activities through ITO.
ITO refers to the release of token issuance information through the Twitter platform. After installing the MASK plug-in, users can directly participate in the Twitter page by linking wallets such as Metamask. During the ITO period, the GAS fee was also significantly increased.
After completing the above operations, you can view the corresponding account information, complete transactions, and participate in ITO directly on the Twitter page.
The ITO method is relatively new, so I will say more here. For each ITO event, the publisher sends encrypted messages via Twitter that only users who have installed the MASK plugin can see and participate. The specific operation is actually similar to trading on Uniswap. The difference is that the ITO method created by MASK adds more restrictions on the robot at the smart contract level. Although the transaction gas fee may increase, compared with the issuance on Uniswap and Balancer, it gives ordinary participants more money. More opportunities to participate with a fixed price.
Due to space limitations, we briefly list some other IDO platforms and features here.
Mesa: Limit Auction
A number of projects such as mStable, dHedge, and API3 have been issued on the Mesa platform. The feature is that the project party sets the auction quantity and price range, and users submit limit orders to participate. To participate in the Mesa auction, you need to recharge in advance.
DODO: Crowdfunding to build a pool
DODO, which uses the PMM algorithm of the nonlinear price curve, adopts the practice of crowdfunding to build a pool. The project party provides certain tokens, sets a fixed price and issuance quota, and users recharge and subscribe. In case of over-subscription, tokens are distributed according to their respective proportions. After the crowdfunding is over, a public fund pool will be established automatically.
Poolz
Poolz supports ETH and BNB IDO participation methods, which need to be applied through the whitelist first. Issued by the project party, you also need to submit an application to Poolz
Take HAPI that recently completed IDO as an example, the following operations need to be completed to be eligible to participate in the token auction.
1. Follow Poolz on Twitter
2. Follow HAPI on Twitter
3. Retweet the pinned tweet on HAPI's Twitter account. Make sure you mention the cash tags $POOLZ and $HAPI
4. Join HAPI telegram group
5. Join the Poolz official telegram group
7. Stake your POOLZ tokens for 7 days on the betting page, 12% apy guaranteed
In addition to the above-mentioned platforms, there are some other on-chain platforms, such as WeStarter of HECO, which will not be expanded due to space limitations.
Due to various factors such as the project party running away, the characteristics or problems of the token issuance platform, the excessive authorization of the wallet, the lower-than-expected performance of the secondary market after the currency price went online, and many other factors, although there are dozens or hundreds of times, there are many people who Financial precedent. Readers still have to distinguish carefully and do their homework well.
6. Fill out the whitelist form:
8. You can also dig into HAPI token economics:
