Initial Liquidity Offering (ILO)
SakeSwap ILO a decentralized crowdfunding mechanism that creates AMM liquidity pools directly with higher liquidity utilization.
With SakeSwap ILO, decentralized projects will be able to easily raise and exchange capital in public. Investors, whales or shrimps, will be able to get the same access to ILO fundraising.
How ILO works?
When a decentralized project wants to raise money through SakeSwap ILO, a new ILO needs to be created on the ILO page which outlines Project and Token Info, Pool/Liquidity Cap Info, Investor Access & Contribution Limits, Offering Dates & Token Unlocking, Project Owner Contact and other project details. The design of Token Lock Period can provide the ILO project stability and give the community more credibility and confidence.
After the ILO creation, SakeSwap ILO team will review the details to make sure all information submitted is correct. A SakeSwap Snapshot proposal will be set up for voting when the information is passed.
The SAKE community has the final decision to which ILO project will be active on SakeSwap. The community voting rules are as follows:
Pass Rate: Over 50% Agree
*The quorum is subject to change based on project development.
The ILO projects will need to provide the project token to SakeSwap ILO smart contract after community approval.
ETH/ WBTC/ USDT/ USDC/ DAI can be the contribution token which is decided by the ILO projects. If ILO is successful, 50% of the investment will be converted to the project token and the remaining 50% will remain unchanged. All funds are protected by the Ethereum smart contract.
If the ILO does not meet the minimum cap required by the project, all raised tokens will be released by the smart contract which means the investors will get the token back. If the funding requirements are met within the specified timeframe, a Project Token/ Fund-Raised Token AMM pool will be created on SakeSwap which means the Project Token will be tradable immediately.
In the meantime, Project and investors will receive a certain amount of LP token as the proof of liquidity providing. There will be a Lock Period for LP release which is set up by the ILO project when creating ILO. The Lock Period helps projects avoid liquidity problems while they are still in the process of strengthening product.
*After successful ILO, 3% of LP will be charged when liquidity providers withdraw their LP Token. The charged 3% LP Token will be used to buyback and burn SAKE.
With the LP token, holders can participate in the SakeSwap Farming to earn SAKE rewards. And more Airdrop campaigns will be launched for ILO participants.
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