What is an IFO?
On PancakeSwap, an IFO is an “Initial Farm Offering”.
In a nutshell, an IFO is a temporary event that offers veCAKE holders the opportunity to acquire a new token from a project, at a fixed valuation and price, before it is listed on PancakeSwap. More information about the IFO process on PancakeSwap and the different sales here.
Can I participate in an IFO thanks to Stake DAO?
Stake DAO’s “Liquid Lockers” offer a liquid version of lockable tokens from protocols that follow “veTokenomics”, while retaining all the properties and benefits of natively locking tokens on the underlying protocol.
There is a Liquid Locker for PancakeSwap, offering a liquid version of the veCAKE token: the sdCAKE, accessible here. The user can then stake their sdCAKE and benefit from all veCAKE use cases, including taking part in IFOs.
How does it work?
Before the start of an IFO, Pancakswap takes a snapshot of all veCAKE holders, and gives them the right to participate. As such, Stake DAO has a right to participate, and transfers this right to sdCAKE stakers.
On Stake DAO, the IFO is split in two periods:
- Phase 1 (the first half of the IFO): sdCAKE stakers can participate in the IFO with a boosted access and no fees. Only sdCAKE stakers are allowed to take part in the IFO.
- Phase 2 (the second half of the IFO): this phase is open to everyone. If some sdCAKE stakers chose not to take part in the IFO, there is still some room in Stake DAO’s allocation. External users can therefore commit CAKE until Stake DAO’s allocation is fully filled. If more external users want to take part in the IFO, they will be served in a first-come-first-served order. Those users will pay a 10% fee to take part in the IFO through Stake DAO’s allocation. This fee will be distributed to sdCAKE stakers afterward through the Top Cake airdrop campaign.
Did you just say “boosted access for sdCAKE stakers”?
Yes. The functioning of Liquid Lockers is that there is a total amount of CAKE locked through our locker, but all its benefits goes to users who stake their sdCAKE (it’s the default option when joining the lockers), while users who provide liquidity receive liquidity mining rewards deriving from vote incentives deposited by the protocol. It is no different for IFOs.
That means that if there is a total supply of 1.3m sdCAKE representing 1.3m veCAKE, but only 1m sdCAKE are staked, sdCAKE stakers see a natural boost of 1.3x on all their utilities. In the context of IFOs, they can commit 1.3x more CAKE than if they just had locked CAKE tokens for four years.
How do I ape?
1/ If you are an sdCAKE staker
If you are an sdCAKE staker, you are eligible to the Phase 1 privileged access. You need to go to: https://lockers.stakedao.org/lockers/cake/ifo
After connecting your wallet, you can see your “IFO credit”, i.e. the amount of CAKE you are allowed to commit.
Additionally, a dedicated section showcasing key information and metrics related to the relevant IFO can be found on the right side of the page.
Once you have checked your balance, you should be able to access “Phase 1”, represented by a purple section.
You should see an input section where you can check the Phase 1 start & end dates as well as fees if there are any for this Phase.
Simply put the quantity you want to commit for Phase 1, and click on the “Commit CAKE” button right below. A transaction should appear, which needs to be signed.
After signing the transaction, you have now successfully joined the IFO during Phase 1.
2/ If you are not an sdCAKE staker, or missed Phase 1
If you are not an sdCAKE staker, or began to stake AFTER the snapshot is taken, you can only access Phase 2, if it is open (read above for Phase 2 availability conditions).
Again, after connecting your wallet, the Phase 2 section in blue should be accessible.
Similarly to Phase 1, you can check the start & end dates for Phase 2.
To participate, simply put the CAKE desired amount and click on the “Commit CAKE” button below, then sign the transaction that appears.
You have now successfully joined the IFO in Phase 2.
3/ How to claim your tokens after an IFO ends?
When the IFO ends, you’ll be able to claim the tokens sold by the listed project, and the excess CAKE you committed compared to your share of the actual funds raised. Please note that PancakeSwap takes a 1% fee on excess CAKE committed.
To claim your tokens, after the end of the IFO, connect your wallet on the Stake DAO IFO webpage (https://lockers.stakedao.org/lockers/cake/ifo).
When the claim window opens, you should notice a section on the bottom left where you can claim your tokens.
Simply hit the “Claim” button and sign the transaction that appears. You should then receive the displayed amount of tokens into your wallet.
