DeFi Token Launches Evolve: What's Behind the Shift From IFOs

The Initial Farm Offering (IFO) is a decentralized finance token launch model that allows users to access new crypto projects through a decentralized exchange or launchpad.

Originating from PancakeSwap, IFOs have evolved over time, moving away from requiring liquidity provider tokens and towards using platform tokens directly. Newer products like CAKE.PAD have simplified participation even further.

The exact process of an IFO depends on the platform, but most follow a similar structure: a project applies to the launchpad, which conducts due diligence before publishing the sale's terms; users commit the required asset during the sale window; and the platform calculates allocations based on demand and token availability.