All along, "strike new" is one of the important means to obtain high profits. In January 2019, Binance took the lead in launching Launchpad, and then major exchanges rushed to launch IEO, which set off the first "new hit" in the currency circle. According to PAData’s earlier analysis, the average return of early IEO tokens is as high as 7.63 times. For investors, if they participate in “news”, they earn money when they buy it.

With the emergence of more and more IEO projects, the stock of funds in the market has been fully consumed, and the income of IEOs has not been as good as before. At that time, it coincided with the first peak of DEX development. Affected by this, in June of the same year, Binance once again launched a new "breaking new" project. Binance DEX listed RAVEN (Raven Protocol) through IDO. However, due to the limitations of the development of DEX itself, IDO at that time was not as popular as IEO.

IDO keywords: DeFi, auction, whitelist

There are many different interpretations of IDO's "D". Some people think that IDO is the first token issued through a decentralized exchange (Initial DEX Offering), and some people think that IDO is the first token issued through DeFi (Initial DeFi Offering).

IDO changes can also be seen from the name dispute. In the initial stage, IDO is done mainly through decentralized exchanges, but there are some problems and hidden dangers in the initial token issuance on AMM DEX, such as "scientists" running away or "giant whale" user trading causing general users IDO Loss of income, etc., this has caused some projects to migrate their first tokens to other DeFi platforms with more complex trading algorithms for the consideration of community mobilization and fair issuance. After the issuance is completed, they will be linked to decentralized transactions for liquid market making. . Therefore, the development of IDO has basically gone through two stages: DEX and DeFi+DEX.

Judging from the current main IDO models on the market, Uniswap and Balancer still use swap. The main difference between the two lies in the composition of liquidity. Uniswap is not a DEX specifically developed for IDO, so its IDO liquidity is consistent with the liquidity composition of other fund pools. Balancer is a set of template liquidity bootstrapping pools (LBP) specially developed for IDO. Its biggest feature is that it allows the issuer to customize the weight of the fund pool, which can be linear or exponential. Balancer believes that by quickly adjusting the weights, the value of the tokens in the pool can be reduced and the price spike caused by early speculation can be prevented.

However, there is always a demand for financing in the market. According to PAData's statistics, the ICO in 2020 is still one of the main forms of financing in the industry, with a total financing amount of approximately US$225 million. Therefore, when DeFi fully rises, IDO also "comes back." In 2021, IDO is becoming more and more popular. Not only specialized IDO platforms, but also customized IDO modules or solutions appear on the market. So, from the data point of view, how much benefit can the current "new" IDO bring to investors? What are the advantages and disadvantages of this form of IDO that need to be paid attention to?

There is a bigger difference between IDO and IEO, that is, in terms of participation qualifications, IEO is deeply bound with exchange platform currency, and users participating in IEO must hold a certain amount of platform currency, while IDO and DeFi governance tokens The degree of binding is much smaller. Usually only governance tokens are used in the issuance of voting links. The actual participation does not consider the token holdings, but requires participants to complete KYC and register as a whitelist member. However, there are also some views that KYC is not in line with the spirit of the blockchain, because the issuer can gain more control over who has purchased how many tokens.