How to participate in an IDO?

An IDO (Initial DEX Offering) is an offer of a token that is made in a Decentralized Exchange (DEX).

Lhe idea of ​​this type of operation is to allow new projects (generally decentralized) to obtain the injection of capital necessary to start operating.

What is an IDO (Initial Dex Offering – Initial DEX Offering)?

DEXs serve to promote projects within them, while offering certain advantages to liquidity providers that participate in said DEX. For example, they can participate in the ICO using the DEX token and obtain better results for their purchase while generating the necessary pool to generate the market that will put the IDO token that is being created for the project into operation. 

Thus, an IDO allows DEX users to lock their funds in exchange for new IDO project tokens. Some of the funds raised are then added with the new token to an LP before later being returned to the project. In this way, an economic dynamic is generated that helps maintain the necessary tokenomics for the proper development of the project. 

IDOs, therefore, become a simple and cheap space to seek capital for new projects, while access requirements are reduced, especially KYC requirements, which are already becoming the rule in ICOs and IEOs.

How an IDO works

The basic operation of an IDO depends on the following points:

1. The DEX receives an IDO listing request (on its IDO Launchpad) from the developers of the new project. In this application, the developers disclose the White Paper of the project, the work that has been done, the target audience, the innovation or new development that they are carrying out, the need for capital to carry out the project, a tokenomics construction for the token, the vesting and other elements of interest to the community and the DEX that will make the listing. 
2. Once the application is received, the IDO Launchpad begins the review and investigation process, which, once completed, is accepted for listing. At this point, the IDO roadmap is generated, the capital to be reached is published, and the DEX listing begins with its different social network spaces. 
3. The IDO is started in which you can generally participate after completing certain tasks (generally promoting the project on social networks) and the money that you want to obtain in exchange for the project tokens is blocked. At this point, the project pool begins to receive liquidity and is matched with an issuance of project tokens (IDO Token) that matches the injection given by liquidity providers/buyers. 
4. Finally, part of the funds raised are given to the team. This will be the seed capital that the team can use directly to bring their project to fruition.
5. Finally, the TGE or Token Generation Event (or IDO Token release process) begins, during which the tokens are transferred to the user and the liquidity pool (LP) is opened for trading within the DEX. This point usually occurs after a time determined by the lock-up applied by the project, and it is only at this point that the liquidity of the LP is finally released for use.

How to buy an IDO?

Participating in an IDO is quite simple, all you need is a cryptocurrency wallet and access to the decentralized application of the DEX. For example, if you want to participate in an IDO, the best place to start is Polkastarter. All you need is to have a Web3 wallet (Metamask, for example), configure it and go to the Polkastarter website. Once there, you just have to search for the project of your interest and select it. 

As you can see the options are many and include network projects such as Ethereum, BNB Chain, Polygon, Celo, Avalanche and soon Solana. When selecting the project you will be able to see all the information about it and the way in which you can participate. Of course, each DEX project and platform has its own peculiarities, so you should know about it and its conditions before participating.