A fundraising method where users stake tokens in farming pools to receive new project tokens as rewards.
What is an Initial Farm Offering (IFO)?
An Initial Farm Offering (IFO) is a token distribution method where users commit existing tokens to farming pools and receive newly launched tokens in return. It combines elements of yield farming with token launches.
How IFOs Work
A DeFi platform hosts the IFO event. Users stake LP tokens or other specified assets. New project tokens are distributed proportionally to participants. Unused funds are typically returned. The process usually runs for a limited time window.
Why IFOs Matter
IFOs provide a fair distribution method, ensure initial liquidity, and reward active DeFi participants. They align the interests of new projects with existing DeFi communities.
Summary
An IFO distributes new tokens through yield farming mechanics, combining fundraising with liquidity generation and community building.
