Initial Farm Offering (IFO) 3.0 & IFO CAKE Pool
PancakeSwap community and CAKE holders, today we are proud to introduce our new Initial Farm Offering (IFO) format: IFO 3.0 & IFO CAKE Pool!
TLDR
Starting with the next IFO, there’s a new format with CAKE staking requirements to reward our most loyal bunnies! During the calculation period (the time interval between each IFO), your average IFO CAKE Pool staking balance will determine your maximum CAKE commitment limit for IFOs.
When will it be implemented?
If you are reading this, the first IFO with this new format is already being voted on, ongoing or has been successfully conducted. Check out our voting page or IFO page for more information.
The IFO CAKE Pool will launch shortly after the first-ever IFO 3.0 project proposal passes.
How does it work?
Earn IFO credits to participate in IFOs
You’ll need to stake CAKE in the IFO CAKE Pool in order to get IFO credit, which will secure your commitment limit in the next IFO sale. This includes Basic and Unlimited sales.
In other words: the total amount of CAKE you can commit in an IFO is determined by your IFO credits.
Stake CAKE in IFO CAKE Pool to earn IFO credits
Your IFO credits are calculated by your average IFO CAKE Pool staking balance over a certain period of time. We call them calculation periods. We will announce the start and finish of each calculation period in all of our social channels.
Here is an example of how the IFO credits are calculated:
A new calculation period started on block 100,000 and ended on block 301,600 (around 7 days’ time).
If you have been staking 10 CAKE in the IFO CAKE Pool for the whole duration (from block 100,000 to 301,600, 7 days), you just earned 10 IFO credits, which will allow you to commit a total of 10 CAKE in the next IFO.
If you staked 10 CAKE in the IFO CAKE Pool at block 200,800 blocks (or 3.5 days after the calculation period starts) and kept the CAKE staked till the end of the calculation period, you will earn 5 IFO credits, and that will be your maximum commitment amount to the next IFO.
Here is another example: If you have been staking 10 CAKE in the IFO CAKE Pool from the beginning of the calculation period but withdrew 5 CAKE at block 200,800 (or 3.5 days after the calculation period starts), your final IFO credits will be 7.5 CAKE ((10*100800 + 5*100800) / 201600 = 7.5). And that will be your maximum commitment amount to the next IFO.
Do I get anything else apart from IFO credits?
CAKE!
Remember: It is a CAKE pool. You will get CAKE rewards by staking CAKE in it.
Auto Compounds
But wait, it gets even better: it auto compounds! The APY has been set to estimate the pool being compounded once per hour (8,670 times per year). We will update the estimation once we have more realistic data. Although it is lower than Auto CAKE pool since there is no compound bounty to incentivize compounding. But unlike the Auto CAKE pool, you will get IFO credits by staking in IFO CAKE Pool.
Fees
Deposit fee
- None
Unstaking fee
- 1% if you unstake (withdraw) within 24 hours.
- Only applies within 24 hours of manually staking.
- After 24 hours, you can unstake with no fee.
- The 24 hours timer resets every time you manually stake more CAKE in the IFO CAKE Pool.
- This fee only applies to CAKE unstaked during manual unstaking. For example, if you have 10 CAKE in the pool, and you unstake 1 CAKE within 24 hours of last manual staking, you will be charged 0.01 CAKE as the unstaking fee and receive 0.99 CAKE.
Pool fee
- 2%, subtracted automatically from each yield harvest.
- For example, if the harvest was 1 CAKE, then 0.02 CAKE would be subtracted as the performance fee.
All fees are subject to change in the future.
Other details about the new IFO CAKE Pool
- At this stage, the staking rewards from the IFO CAKE pool during the calculation periods will not be accounted for during the IFO credit calculation — only the principal amount will be accounted for.
- At the IFO event, you can withdraw your CAKE from the IFO CAKE Pool to commit to the IFO sales. Please note that if you manually staked your CAKE into the IFO CAKE Pool in the last 24 hours, a 1% unstaking fee will be applied to the unstaking amount.
- After you’ve claimed the unspent CAKE tokens back after the IFO event, you may want to restake them back into the IFO CAKE Pool immediately to secure your IFO credits for the next IFO, since the calculation period for that will start very SOON™ after the current IFO.
- Please refer to our previous post for more details. Such as PancakeSwap Profile requirements, Basic Sale, Unlimited Sale, the participation fee will remain the same.
- In the “Basic” session, the maximum commitment for each participant is the lower of their IFO credits or the cap of $100 equivalent in CAKE.
- In the “Unlimited” session, the maximum commitment for each participant is their IFO credits minus the Basic Sale committed amount. Participation fee applied just like the previous format with the tier-based calculation.
- The final allocation you receive will still be subject to the total amount of CAKE committed from your wallet in the separate sessions.
But it seems like whales with a big CAKE balance will still get most of the allocation if they stake them?
Yes, we wish to reward our biggest CAKE supporters. At the same time, regardless of your contribution, our most loyal CAKE supporters will always benefit from this change, as only those who have CAKE staked for the duration of the IFO CAKE Pool will benefit from the increased allocation.
So what should I do?
Stake CAKE in the IFO CAKE Pool
Go to the IFO page, and click the “Enable” button in the IFO CAKE Pool to enable CAKE deposit.
After enabling the pool, click “Stake” to bring up the Staking modal.
Choose the amount of CAKE you want to stake in the pool. Then click “Confirm”, and confirm the transaction in your wallet.
Check your IFO credits
On the IFO CAKE card, you can check your IFO credits, which is your commitment limit in the next IFO sale, determined by your average IFO CAKE Pool staking balance over the calculation period.
⚠️ The above screenshot is using mockup data. Actual APR is roughly equal to Manual CAKE.
Commit your CAKE during IFO
When IFO sales are live. You can choose to commit your CAKE from your wallet. Or you can unstake your CAKE from the IFO CAKE Pool by clicking the “-” button on IFO CAKE Pool card.
Please note that if you manually staked your CAKE into the IFO CAKE Pool in the last 24 hours, a 1% unstaking fee will be applied to the unstaking amount.
After committing to the basic sale, you can use your remaining IFO credits to continue committing to the unlimited sale.
Claim and restake your CAKE after IFO
After the IFO sales, when you’ve claimed the unspent CAKE back to your wallet along with the purchased tokens, you may want to restake those CAKE back into the IFO CAKE Pool immediately to secure your IFO credits for the next IFO.
Will the rest of the participation process still be the same?
Yes, the only difference is that anyone who wishes to participate will now have to stake in the IFO CAKE Pool for a certain period of time before the event to obtain IFO credits, which will determine their commitment limit in the next IFO sale.
For more details about the PancakeSwap Profile requirements, Basic Sale, Unlimited Sale, participation fee and burning, please refer to our previous post.
Why did we opt for this change?
We are always striving for better formats to make the IFOs more fair, accessible and rewarding. With the staking requirements, we hope to make it fairer by giving the commitment (and the respective allocation) to the long-term CAKE holders, with the added objective of locking up more circulating supply of the token.
Whales or anyone with deep pockets will not be able to just get or borrow a large amount of CAKE at the last minute to participate in the IFO and take most of the allocation — protecting our long-term users and token holders.
Remember it is only Phase 1
While we are still experimenting with different parameters of this new format to best fit our community, we will continue to develop more features to make the IFOs more fair, accessible and rewarding.
If you have any other questions at all, feel free to throw them at us on Twitter using the hashtag #PancakeSwapIFO and we will answer as many as we can.
The Chefs 🐰
🥞 Telegram
