What is Initial Farm Offering (IFO)?
Let's find out Initial Farm Offering (IFO) meaning, definition in crypto, what is Initial Farm Offering (IFO), and all other detailed facts.
Initial Farm Offering (IFO) is a fundraising model for decentralized finance (DeFi) projects to raise capital using the farming feature. IFO acts as a successor to the initial coin offering (ICO) fundraising model, which is used to garner financial support for cryptocurrency development.
Investors participate in pre-sale events hosted by decentralized exchange platforms (DEXs) and raise capital for projects by investing in their native tokens. DEX teams carefully vet all potential participants and present a list with project proposals for the investors’ convenience.
The tokens acquired via an IFO campaign are in no way more advantageous than the ones raised using other fundraising models. Although the exchange platforms carefully audit each project, the token value may be affected by fluctuating market conditions.
Most IFO campaigns are hosted on PancakeSwap. The users of this platform are able to receive rewards from the fundraising campaigns. Project owners can benefit from the platform’s liquidity pool. Most of the tokens presented during IFOs are community-driven and decentralized.
There are two types of IFO campaigns:
- Basic sale: investors can stake a limited number of tokens without paying a participation fee;
- Unlimited sale: investors pay a predetermined fee and stake as many tokens are they are able to.
Users that wish to participate in an IFO campaign must first register on a DEX platform that hosts such projects. They then stake their tokens to participate in the IFO. Users are required to provide liquidity for the farming process and are rewarded with tokens at the end.
Some of the benefits to an IFO campaign include:
- There is no intermediary involved in the process. Peer-to-peer (P2P) transactions are enabled, which saves money;
- IFO helps users maximize the benefits of using a DEX platform to trade and invest;
- All transactions are transparent thanks to the decentralization;
- Users are guaranteed access to instant liquidity.
Investors are recommended to do their own research regarding the projects in the fundraising events. IFO campaigns are common among crypto newcomers who are looking into ways to quickly make profit. They can also serve as an opportunity to build a crypto portfolio and generate extra income.
ICOs and other fundraising models that were developed prior to IFOs relied heavily on investments from venture capitals. Such project fundings take longer and the gains cannot be reliably determined. The increasing amount of DeFi projects submitted for funding may lead to IFOs growing in popularity.
There are two types of IFO campaigns:<\/p>\n<ul>\n<li><strong>Basic sale<\/strong>: investors can stake a limited number of tokens without paying a participation fee;<\/li>\n<li>Unlimited sale: investors pay a predetermined fee and stake as many tokens are they are able to.<\/li>\n<\/ul>\n<p>Users that wish to participate in an IFO campaign must first register on a DEX platform that hosts such projects. They then <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-staking/">stake their tokens to participate in the IFO. Users are required to provide <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-liquidity/">liquidity for the farming process and are rewarded with tokens at the end.<\/p>\n<p>Some of the benefits to an IFO campaign include:<\/p>\n<ul>\n<li>There is no intermediary involved in the process. <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-peer-to-peer-p2p/">Peer-to-peer (P2P)<\/strong><\/a> transactions are enabled, which saves money;<\/li>\n<li>IFO helps users maximize the benefits of using a DEX platform to trade and invest;<\/li>\n<li>All transactions are transparent thanks to the decentralization;<\/li>\n<li>Users are guaranteed access to instant liquidity.<\/li>\n<\/ul>\n<p>Investors are recommended to do their own research regarding the projects in the fundraising events. IFO campaigns are common among crypto newcomers who are looking into ways to quickly make profit. They can also serve as an opportunity to build a crypto portfolio and generate extra income.<\/p>\n<p>ICOs and other fundraising models that were developed prior to IFOs relied heavily on investments from venture capitals. Such project fundings take longer and the gains cannot be reliably determined. The increasing amount of DeFi projects submitted for funding may lead to IFOs growing in popularity.<\/p>","definition":"a decentralized finance fundraising model of raising capital via the farming feature.","status":"published","meta_title":"What is Initial Farm Offering (IFO)? Definition & Meaning | Crypto Wiki","meta_description":"Initial Farm Offering (IFO) meaning: Initial Farm Offering (IFO) - a decentralized finance fundraising model of raising capital via the farming feature.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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