A fundraising mechanism where tokens are launched by creating initial liquidity pools on decentralized exchanges.
What is an Initial Liquidity Offering (ILO)?
An Initial Liquidity Offering (ILO) is a token launch method where new tokens are paired with a base asset and deposited into a decentralized liquidity pool. This simultaneously raises funds and creates immediate trading liquidity.
How ILOs Work
The project pairs its new tokens with a stablecoin or ETH in a liquidity pool. Participants can buy tokens directly from the pool at market prices. Liquidity is typically locked for a set period to prevent rug pulls. Trading begins as soon as the pool is active.
Why ILOs Matter
ILOs combine fundraising with liquidity creation, ensuring tokens are immediately tradable. The locked liquidity mechanism provides investor protection and builds trust.
Summary
An ILO launches tokens through decentralized liquidity pools, providing instant trading access and built-in liquidity from day one.
