Initial Future Offering
A better IDO system.
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A better IDO system.
Last updated
Was this helpful?
IDO was created as an improvement over ICO to provide liquidity for the issuing token as soon as it is offered to the public. However, it has been swamped by bad actors who constantly attempt to scam uninformed investors.
Initial Future Offering (IFO) is an upgraded version of the Initial DEX Offering (IDO) process, where the token is also made available on a perpetual DEX for users to go long and short.
A typical IFO process is as follows:
The token developer provides the initial liquidity to a Spot DEX AMM, preferably Uniswap V3, and receives the LP token.
Instead of burning or locking the LP token, the LP is added to Derivable's perpetual pool, and the developer receives the Derivable's LP token in return.
The Derivable LP token can now be either burnt or locked, depending on the tokenomic design chosen by the token developer.
The result is a (much) better IDO system that filters out the bad actors and attracts market confidence.
