Introducing Initial Farm Offerings (IFOs)
If you thought we were done with the announcements over at Rocket Launchpad, boy you were wrong!
As the name suggests, Initial Farming Offerings are a brand new type of fundraising activity that uses farming to generate funds for participating projects.
The IFO process is beneficial to new projects, Rocket Launchpad, the Quipuswap DEX, as well as users; the IFO allocates farming rewards to Rocket Launchpad users while also providing new projects an incentivized liquidity pool on Quipuswap. The IFO generates sustainable yields for Rocket Launchpad users, and it creates initial liquidity for the respective token. Adding icing to the cake, half of the funds raised are in $RCKT and are burned.
IFOs have exploded on Binance Smart Chain (BSC) and we want to bring that magic to the Tezos blockchain. Through IFOs, projects are able to raise adequate funding while the tokens being farmed are widely distributed to everyone participating.
Well….How does this work?
Lets dive into it! Say you find a IFO you wish to participate in. You would head to the projects page and stake the $XTZ/$RCKT LP token. At that point, our UI will show you the projected amount of tokens you can farm and your percentage share of the farm. That percentage share is very important as it determines how many tokens you will earn from farming. Throughout the IFO, anyone can stake and commit $XTZ/$RCKT LP so your percentage share of the pool will vary throughout the farming period.
When the time period has ended, you will be able to harvest your share of the IFO tokens being offered. When you harvest your IFO tokens, the corresponding value from your LP tokens is deducted and the remaining LP tokens are returned to you (if any).
So this farm isn’t a normal farm? Nope! You are farming and earning tokens before they have been released or listed on a DEX. The more LP tokens you add to the farm, the higher the share of the IFO you will have and therefore the more tokens you will have a claim to when you harvest.
Confused? Don’t worry, we were at first as well! Here is a chart to help you understand!
Lets break it down some more!
Before the IFO:
- You will need $RCKT-$XTZ LP tokens to participate.
- We set the amount of $XTZ a project wants to raise and a time period.
During the IFO:
- Anyone can commit their $RCKT/$XTZ LP tokens.
- You can add more LP tokens at any time throughout the IFO.
- All LP tokens added are locked throughout the duration of the farm and released once liquidity has been added for the token being farmed.
After the IFO:
- Before you can harvest your IFO tokens earned from farming, the corresponding amount of LP tokens has to be deducted and any leftover LP tokens are returned to your wallet (if any).
- At that point we will divest the LP tokens to $XTZ and $RCKT, add liquidity to the token being farmed in the IFO, and then burn the $RCKT tokens.
- Once liquidity is added, you can harvest the IFO tokens you’ve farmed and your unused LP tokens will be sent back to you.
Okay that was confusing as hell…so what makes IFOs so great and why should I care? For one, anyone can participate in IFOs…there are no country restrictions for IFOs at this time. Also, IFOs are a great way to widely spread tokens to many individuals as anyone can participate with no minimum or maximum commitment limits.
To demonstrate the power and utility of an IFO, we will be adjusting our final $RCKT token sale numbers a little. Don’t worry, the price for $RCKT isn’t changing and we are doing this to allow more individuals to participate!
For the upcoming token sale, we will raise 100,000 $XTZ in total value (50,000 $XTZ / ~3,500,000 $CRUNCH) via IFO by allowing users to farm $RCKT with the $CRUNCH/$XTZ LP token. From this IFO, the $CRUNCH portion of the IFO fee will be burned. That’s right…..50,000 $XTZ in $CRUNCH will be burned.
We decided to use $CRUNCH due to our teams close ties to Crunchy.network as well as due to the total amount of $CRUNCH liquidity available.
The final figures for our token sale will look like this:
- From 1000 EST 07 August to 1000 EST 15 August, 80,000,000 $RCKT tokens will be available in the IDO (1 $RCKT = 0.005 $XTZ)
- From 1000 EST 13 August to 1000 EST 15 August, 20,000,000 $RCKT will be available in the IFO (1 $RCKT = 0.005 $XTZ)
As you can see from the figures above, the price of $RCKT is not changing. We are simply looking to raise 20% of the funds through our IFO so we can include more people and showcase the IFO to future projects wishing to utilize Rocket Launchpad.
I know this process can seem very confusing and that is why we are here! Stop by our socials if you have any questions, comments or concerns.