IDO Mechanics

Initial Decentralised/DEX Offerings are fundraising events for new DeFi projects, whereby the token issuer supplies liquidity to a DEX, allowing users to buy tokens with other cryptocurrencies. This process is typically facilitated by IDO launchpads which serve as intermediaries between projects and participants, providing a platform for early access at preferential rates.

IDO Problems

Community members face challenges in navigating IDOs due to the complexity of finding opportunities and conducting thorough project evaluations. They often rely on influencers, social media, or personal networks for guidance.
High-quality platforms like Eclipse Fi alleviate these issues by providing a centralized platform for project assessment, streamlining research, and offering a reputable space for project vetting. However, trust in the launchpad's evaluation process is crucial, as not all launchpads exhibit equal rigor and transparency.
Common struggles observable in the DeFi space with regards to IDO launchpads include:
  1. 1.
    Demand Assessment: Difficulty in accurately gauging capital availability versus market demand.
  2. 2.
    Fairness: Uneven distribution of token allocations, potentially favoring specific groups or stages of the IDO. Dominance of a small number of whales and top stakeholders in allocation distribution.
  3. 3.
    Minimal Decent Allocation: High minimum allocation size, excluding lower-tier users.
  4. 4.
    Lack of Incentives: Absence of incentives for long-term holding, leading to sell-offs instead of retention.
  5. 5.
    Liquidity Shortage: Insufficient liquidity for new projects, resulting in excessive token volatility and difficulties in realizing ROI.
  6. 6.
    Weak Business Strategy: Poor deal flows, branding, and a focus on short-term gains over product quality and community support.
  7. 7.
    Subpar User Experience: Lack of an intuitive and consistent UI for IDO participation, hampering the overall user experience.

Our Solution

At Eclipse Fi, after observing various methods of organizing IDO launchpads, we aim to simplify the process and make it viable for our users.
We've decided to combine two approaches: a) Guaranteed allocation, and b) Lottery-based distributions. This balances a fair opportunity for access to IDO fundraising without relying solely on luck.
Furthermore, we have a first-come-first-serve opportunity for additional allocations, covered in the First-Come-First-Servesection.
For more details on the components and flows of Eclipse IDOs, see The IDO Steps.