Clear DefinitionsIFO
1 min read
Pronunciation
[eye-eff-oh]
Analogy
IFO is like a pre‑order sale where you lock in store credit (LP tokens) to secure a limited‑edition product (new tokens).
Definition
Abbreviation for Initial Farm Offering, a DeFi token launch model distributing new tokens to users who stake liquidity provider tokens.
Key Points Intro
IFO shorthand denotes:
Key Points
LP staking requirement: Use LP tokens rather than native tokens.
Automated distribution: Smart contract handles allocation and refunds.
Yield farming synergy: Combines token launch with liquidity incentives.
Event parameters: Defined by project—duration, caps, token price.
Example
Technical Deep Dive
IFO uses two main contract functions: `deposit(uint256 amount)` and `harvest()`. Deposits record in a mapping; at harvest, allocations computed via `user.amount / totalAmount * tokenPool`. Unused LP can be withdrawn. Price per token enforced by requiring LP value ≥ tokens × price.
Security Warning
IFO contracts may not be audited; malicious code could lock LP permanently—verify audits and token contract addresses.
Caveat
IFO success depends on sustained liquidity post‑event; tokens may suffer low trading volume after launch.
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