


Initial Farm Offerings (IFO) are a new type of token sale event popularized by Decentralized Exchange (DEX) platforms, IFO's are utilized as a fundraising event for upcoming De-Fi protocols.
Initial Farm Offerings
Initial Farm Offerings (IFO) are a new type of token sale event popularized by Decentralized Exchange (DEX) platforms. PancakeSwap is the most popular of them all, utilizing this unique fundraising event for upcoming projects.

IFO’s are both different and similar to Initial Exchange Offerings (IEO) and Initial Coin Offerings (ICO). All three methods serve as a way to raise funds for cryptocurrency projects. These are typically carried out on an exchange, but sometimes project websites or other “pre-sale” methods are used.
Venture Capitalists of the Future
Since the inception of cryptocurrencies over 12 years ago, significant developments have changed the types of fundraising events that have been used, for example, before ICO’s projects heavily relied on venture capitalist (VC) backing, which is a slow and cumbersome process. The ICO period revolutionized the way fundraising was done, cutting short the process of obtaining venture capitalists (VC). The initial system of getting VCs was proven to be a prolonged process for blockchain-based projects.

To solve this, exchanges stepped in to help projects raise funds safely and transparently. - See Binance IEOs.
Recently, the tide has shifted towards the decentralized finance (DeFi) sector of the Crypto markets. The most prominent Dapp’s used are DEX platforms like PancakeSwap and StreetSwap, which have introduced another innovative sales offering, Initial Farm Offerings (IFO).
What Is An IFO?
As the name suggests, Initial Farming Offerings are a brand new type of fundraising activity that uses farming events to generate funds for participating projects.
With the help of IFO’s, users can participate in “pre-sales” hosted through DEX’s to get tokens before listing on respective exchanges. 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, as users should always due diligence beyond BSCNews when making financial decisions.
The IFO process benefits both new projects, Pancakeswap, and its users; the IFO allocates farming rewards for PCS users while also providing new projects an incentivized liquidity pool on PCS. This system allows sustainable yields to be generated for PCS users, and it creates initial liquidity for the respective token. On top of this, half of the funds raised are burned in CAKE if the sale is completed.
For those who are unaware of the smart contract and project risk, check out the following articles:
How To Spot a Potential RUG — Clear Signs Something is Sketchy
How to Keep Your Funds SAFE — MetaMask Guide
Participating In An IFO
Before taking part in an IFO event, users must provide liquidity, which is used to purchase the respective token participating in the IFO. In PancakeSwap IFO’s, users must provide Cake-BNB liquidity on PancakeSwap using a BEP-20 wallet such as TrustWallet. See How to provide liquidity on PancakeSwap.
Once liquidity is provided, the new tokens are bought using the Cake-BNB LP tokens generated after adding liquidity. Pancakeswap utilizes a system that rewards the project with the BNB collected, and PancakeSwap burns the Cake. Finally, the users are granted the tokens after the IFO event is completed.
What Happens to Unspent Funds?
They simply come back to the user after the event. In a sellout event, users will receive the proportional value in tokens based on their contribution as a percent of the total contribution done. For example, suppose the full value of an IFO is set at a $1,000,000 contribution. In this case, users get the equivalent amount of their contribution in the tokens over the total value after the event and get what's leftover.
If the targeted amount of funds are not raised, sales will proceed as normal, and funds will be utilized. Project development doesn't stop if the total expected funds are not reached; it just means fewer tokens are distributed.
IFOs: Here to Stay
A bold new kind of idea could once again change the way funds are generated in a whole new way. PancakeSwap has continued to innovate upon their platform, integrating ICO’s. This system rewards both new projects and PCS users as the process creates liquidity for new projects and burns CAKE tokens. Overall, IFO’s are used to raise funds for new decentralized protocols on the BSC. This system provides a seamless way for new projects to launch into the DeFi space.

All users must note local and national regulations in their respective regions when participating in IFO’s.
Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC, it is crucial to reference the following items, HERE and HERE.
None of our articles are advice at the end of the day, and all financial decisions should be made on your behalf or from a professional financial advisor.
Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for Binance Smart Chain and crypto!
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News


Digital Asset Infrastructure Provider Taurus Partners with Polygon: Revolutionizing Decentralized Finance?

This partnership aims to enhance Taurus' capabilities by incorporating staking and decentralized finance (DeFi) support into its offerings.
Taurus Embrace Polygon Blockchain
Taurus, a leading provider of digital asset infrastructure backed by Credit Suisse and Deutsche Bank, has partnered with Polygon to provide staking and decentralized finance (DeFi) support to its capabilities.
Enabling banks and brands to issue and custody any tokenized asset using @0xpolygon@taurus_hq, the European digital asset infrastructure leader is now fully integrated and automated #onPolygon 😎
— Polygon (Labs) (@0xPolygonLabs) June 2, 2023
More: https://t.co/U2tT0azjkG pic.twitter.com/urFCzXN8eg
Taurus offers a range of services, including custody, tokenization, and trading of digital assets. Taurus recently secured $65 million in funding through a round led by Credit Suisse and Deutsche Bank in February, highlighting the growing interest from traditional financial institutions in blockchain technology and tokenization.
Tokenization, the process of representing an asset as tradable units in a digital format, is increasingly drawing the attention of mainstream financial institutions.
Taurus emphasized that most Tier 1 financial institutions are entering the tokenization space and seeking a blockchain-agnostic and token-agnostic infrastructure. Additionally, Bank of America published a report last April stating that the tokenized gold market had surpassed $1 billion the previous month.
Polygon aims to evolve into an "internet of blockchains," connecting various Ethereum-compatible networks while continuing to enhance transaction efficiency and speed.
As blockchain technology adoption accelerates, collaborations between established major institutions and Polygon continues. In addition to the recent collaboration Polygon has also partnered with Franklin Templeton, Google Cloud, and Deutsche Telekom in recent months.
Polygon ($MATIC) is trading at $0.9, up 0.4% in 24 hours, according to CoinMarketCap.
What is Polygon:
Polygon is a “sidechain” scaling solution that runs alongside the Ethereum blockchain — allowing for speedy transactions and low fees. MATIC is the network’s native cryptocurrency, which is used for fees, staking, and more. The effectiveness of Polygon as an alternative to Ethereum has seen existing projects such as Aave and Curve adopting its chain.
For more about Polygon:
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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