As the DeFi ecosystem continues to gain ever more popularity, more and more opportunities are emerging within the cryptocurrency industry. Fueled by bullish gains, users continue to experiment and engage in financial crypto products and services, such as decentralized lending and liquidity mining.
From crowdfunding-style ICOs to exchange-based IEOs, fundraising formats for blockchain projects are constantly being refined. With the rapid growth of the DeFi market, the IDO model is now the mainstream way of fundraising for DeFi projects. Among the IDO platforms, one multi-functional IDO platform is standing out from the rest of the competitors – HDAO’s brand-new IDO platform.
On HDAO's IDO platform, liquidity pools will support most mainstream token pairs, and their price will only change if tokens are bought or sold, or if the proportion of tokens in the liquidity pool changes.
Unlike IEO, projects do not have to pay listing fees. When a project negotiates with a centralized exchange to hold an IEO, it is also usually required to pay a listing fee, and must provide a percentage of its tokens to the exchange in the form of a commission. This means that project parties conducting IEOs will have less resources available for project development.
IDO also solves some other problems associated with IEOs, such as the fact that in most cases, a centralized exchange hosting the IEO may not allow the project to be listed on other exchanges for a certain period of time. Such restrictions may severely limit the rights of projects and impede market development.
At the same time, since the project owner needs to work with a centralized exchange in order to hold an IEO, there are many terms that would require extensive negotiation, and there is no autonomy for the project owner in the decision for many matters, such as the number of tokens issued or the price of the tokens. On the other hand, IDOs can be executed autonomously by token projects and listed freely on decentralized exchanges (DEX). This allows new projects to interact directly with their investors and community, which is more in line with the decentralized, peer-to-peer nature of blockchain.
HDAO’s New IDO Platform
HDAO’s new IDO platform is dedicated to providing investors and entrepreneurs with transparent, safe, fair and comprehensive financial services. The main function of the platform is to connect investors with high quality projects with strong potential to maximize the benefits of users of the platform. Built on the polygon network, HDAO will enjoy high throughput to process more transactions per second and users will be able to enjoy lower transaction fees.
HDAO will work on developing a high quality DeFi ecosystem, where users can continue to benefit from the various services offered on the HDAO platform. The team will also continue to build on its product portfolio, and improve current services on the new platform. Besides liquidity mining and staking services, users will be able to do token swaps and participate in the upcoming HyperDAO DEX and NFT marketplace.
HDAO tokens are expected to see an appreciation in value with various utility including being a measure for eligibility to participate in the IDOs on the platform, decision making and governance of the HDAO protocol, and as rewards for mining and staking activities. With several top projects choosing to launch on top IDO platforms, it seems that IDO is overtaking traditional ICO and IEO fundraising methods. In the long run, HDAO will further strengthen its platform's competitive advantage, providing an open, fair, interconnected and integrated DeFi ecosystem for everyone.