IFO (Init Future Offering)
The ERC-404 and DN404 standards were designed to address the flaws in traditional token offering models like ICOs and IDOs, which have been plagued by bad actors attempting to scam uninformed investors. While IDOs were created to improve ICOs by providing liquidity as soon as the token is offered to the public, they have not fully solved the issue of security and trust.
Initial Future Offering (IFO) was introduced as an advanced version of the Initial DEX Offering (IDO). In an IFO, the token is made available on a perpetual DEX, allowing users to go long or short on the token, adding a layer of market insight and security.
A typical IFO process includes the following steps:
The token developer provides initial liquidity to a Spot DEX AMM and receives LP tokens in return.
Instead of burning or locking these LP tokens, they are added to a perpetual pool on a platform like Derivable, where the developer receives Derivable's LP tokens.
These Derivable LP tokens can then be either burnt or locked, depending on the tokenomic strategy chosen by the developer.
This approach results in a more robust IDO system that not only filters out bad actors but also attracts market confidence by providing a transparent and secure environment for token launches.
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