PancakeSwap is one of the most popular decentralized finance (DeFi) protocols built over the Binance Smart Chain (BSC). It is often referred to as an Automated Market Maker and a yield farming platform for multiple tokens. Recently they have added multiple new features that involve lottery, predictions, and the Initial Farm Offering (IFO). In this article, we will look into the specific IFO feature and learn how it works and how to participate in it.
Officiale Website: https://pancakeswap.finance
Before going directly into the IFO section let's see some stats about PancakeSwap so that you can understand the dominance of this DeFi protocol.
As you can see in the picture below, the PancakeSwap stands on the first rank in the entire Binance Smart Chain ecosystem with the total value locked (TVL) of $4.72 Billion and has the 36.34% of dominance. Now I suppose you got the idea of how big PancakeSwap is in the Binance Smart Chain.
Initial Farm Offering is a token sale event that crypto projects use to raise the funds for future project development, it is similar to a very popular terminology known as Initial Coin Offering (ICO). IFOs are held on the PancakeSwap platform whenever a crypto project is ready for the token sale, the benefit of taking part in IFOs for users is that we can get early access to that tokens at a relatively cheaper exchange listing price.
Currently, there are two types of IFOs one is a private sale and another is a public sale, don't worry they are not as they sound.
Private Sale: To be eligible for the Private Sale you need to have one or more NFTs from the Pancake Squad collection. Generally, it is an expensive way to participate in IFOs because the prices of those NFTs start from ~$2000. Another important thing to consider is that only 20% of the total sale is available in Private Sale, But the benefit of Private sale is that there are no participation fees.
Public Sale: Public Sale can be a better way to participate in the IFOs especially if you are a CAKE (native token) holder. You need to stake CAKE tokens in the IFO Cake Pool where you earn interest over your CAKE holdings and the IFO credits which will help you to join the public sale. And 80% of the available tokens for the sale will be available in the public sale and there will be 1% starting fees which decrease in the cliffs.
Here we will see a step-by-step process for participating in the public sale of IFO.
Step 1: You will need an active PancakeSwap profile. To activate a profile you will need to purchase a basic NFT which costs ~1 Cake or ~$10. And remember you have to do this only if you are trying Public Sale for the first time, it will be activated forever and no need to do it for future IFO participation.
Step 2: Once you activate your PancakeSwap profile now you will need to stake your CAKE tokens into an IFO Cake Pool, where you will keep earning interest as other Cake pools but also earn IFO credits which will decide your maximum commit amount for the sale, you can only purchase tokens up to that limit.
If you want to learn about the IFO credits then refer to the article by official PancakeSwap on the calculation of IFO credits
Step 3: Once the token sale goes live you can commit whatever amount of CAKEs below your IFO credits for purchasing tokens.
Step 4: This is the last and easiest step, all you have to do is wait until the token sale period ends. After that, you can claim your tokens and use them in whatever way you want.
Check this image, it involves the list of the previous project that has been offered a token sale through the Initial Farm Offering (IFO).
Accessing early tokens of crypto projects can be hugely profitable and in my opinion, PancakeSwap provides a good opportunity for every interested user.
Hope you find this article informative and you have understood the specific IFO feature of PancakeSwap. Thank you for your support and time!!
This is an informative article. We do not suggest or advise you to take financial decisions based on this information. Happy Crypto Investing!! :)
