Initial Farm Offerings (IFO) are a new type of token sale event popularized by Decentralized Exchange (DEX) platforms. Current IFO launches on DeFi platforms require LP raises that are usually paired as half BNB and half the native token of the platform. Traditionally 50% of funds raised on IFO goes directly to fund the new project while the other 50% will be burnt to inflate the native token of the platform. In return, Investors will receive tokens of the new IFO. Typically the DEX teams will thoroughly vet projects before hosting official IFO’s. While this vetting process is included, it does not ensure the token’s success or integrity.
The Dark side of the moon
An estimated $4.9 billion was raised through ICOs in 2017, around the same amount reported by the Wall Street Journal in mid-December of last year.
When the bubble finally popped in 2017, the “market cap” of all crypto fell over $700B, an 85% drop from its peak in January — steeper than the dotcom bubble’s 78% crash. The media gawked at this collapse, and as usual, proclaimed this was the nail in the coffin for cryptocurrencies.
IFOs & Rugpulls
IFOs continues the legacy of ICOs. providing crowdfunding opportunities as more new projects are listing on AMMs such as PancakeSwap.
While this might present an earning opportunity for some, the number of the so-called ‘rug pulls’ is also on the rise. Investors need to be extremely careful and selective when it comes to the tokens they put their money into. This is a con that begins with minting new tokens, creating Telegram groups to get the buzz going, followed by a exchange listing and injecting liquidity.
At this point, the original malicious liquidity provider would wait for people to swap their ETH for the newly minted coin, after which the token’s creators would drain the liquidity pool, leaving holders with nothing but a worthless coin.
5% (7.5M) of total supply of coins minted in future will be allocated to the developer pools for maintenance of operations and further developments of IFOSWAP.
Maximum Farming Rewards
75% (112.5M) of total supply of future coins will for the distribution as incentive for staking and farming on IFOSWAP
● Reward per Block – 1.066 H2O
● Daily Emission (based on 28.8k blocks per day) – 30,700.80 H2O per day
● Farms & Pools will get H2O depending on the multiplier shown on the top right corner
● ~6.191% will be sent to the developer’s address for further development of the platform
Farmers – 93.8% of the rewards per block (1 H2O)
Farmers daily – 28,800 H2O (based on 28,800 blocks per day)
Devs & Incentives – ~6.191% of the rewards per block (0.066 H2O)
IFOSwap collects a 3% deposit fee. This will be used in the following manner:
● 1% – to buy back H2O and burn to shrink supply and increase prices of H2O
● 1.5% – to buy H2O to be redistributed to the swap traders who trade in our Farms ( Reservoirs )
● 0.5% – Marketing fee for Commissions
For more details, you can check IFOswap whitepaper here.