Flamingo Finance, a DeFi Platform Built on Neo, Prepares for the First IDO on N3
This article will explain how it works and what you can expect.
What is an IDO?
An Initial Dex Offering (IDO) is a type of decentralized and permissionless crowdfunding platform. Essentially it is a new way of fundraising in the crypto space.
Each IDO will consist of a Pre-sale and a Public sale. The pre-sale consists of weight, tiers, and lockup times.
Your pre-sale weight is an allocation of the total pre-sale tokens available. It’s as simple as if you have 100 pre-sale weight, and the total weight for a project is 1000, you get 10% of the project’s IDO tokens (100/1000) allocated to you. The reason pre-sale weight exists is so an IDO is fair, and everyone can participate.
The tier you fall under determines how much pre-sale weight you get. The higher the tier, the more weight you get. You will also need to stake FLM to qualify for a tier. The more you stake, the higher the tier you qualify for.
The staked FLM does not give you yield and the IDO is not connected to the Liquidity Pools. So to get a tier you need to stake FLM in the IDO contract. A tier gives you the right to buy your allocation of the IDO token. You do not need to buy the tokens you are allocated, if you don't buy them they will go on and be sold at the public sale.
For all tiers, the lock-up time is approximately four days (22,400 blocks).
(Tiers have a 20% fee if you want to withdraw your staked FLM before the required lock time is up.)
You can unlock your FLM free and get it back when the lockup time is over.
IDO Project Phases
The IDO is made with the purpose that everyone can get a piece of the pie; that is why an IDO project has 3 phases:
Pre-sale registration (22,400 blocks = approximately Four days)
You can register for a project with your weight from your tier in this phase.
Pre-sale (11 200 blocks = approximately Two days)
If you registered for the pre-sale, you now have an allocation of tokens you can buy. You pay with fUSDT for the tokens and claim them after the pre-sale phase.
Public sale (11 200 blocks = approximately Two days)
During the public sale, any tokens not purchased during the pre-sale will now be available to all users without a tier. In this phase, you can buy as many tokens as you wish until the IDO is sold out or the public sale is completed.
What projects will run on the Flamingo IDO?
We are excited to say that GhostMarket will be the first project to launch on our platform. They have scheduled their IDO for the 10th of January, and registration opens then.
Moving forward, the IDO will host new projects joining Neo, and we are already in advanced talks with the next project. We would, of course, love to have the calendar full of projects, but at the time of writing this, we all need to spread the word about Neo so we can attract more developers and projects. We all have a duty to make sure the IDO calendar fills up!
The Flamingo team will ensure that the projects’ quality is high, but there are always risks when investing in crypto projects, so please do your research before you invest in an IDO project.