IDO Mechanics

Initial Decentralized Exchange Offerings (IDOs) are fundraising events for new DeFi projects in which the token issuer provides liquidity to a DEX, enabling users to purchase tokens with other cryptocurrencies. This process is typically supported by IDO launchpads, which act as intermediaries between projects and participants, offering a structured platform for early access at preferential rates.

IDO Problems

Community members often face challenges when navigating IDOs, particularly due to the difficulty of identifying reliable opportunities and performing thorough project evaluations. Many participants instead rely on influencers, social media, or personal networks for guidance.

High-quality platforms like OruxAI aim to solve these issues by providing a trusted, centralized hub for project assessment, streamlining research, and offering a reputable space for project vetting. However, trust in the launchpad’s evaluation process remains critical, as not all launchpads apply the same level of rigor or transparency.

Common Challenges with IDO Launchpads in DeFi

• Demand Assessment: Difficulty in accurately gauging market demand and available capital.

• Fairness: Uneven allocation distribution, often favoring whales or early insiders over the broader community.

• Minimal Decent Allocation: High minimum allocation sizes that exclude lower-tier users.

• Lack of Incentives: Insufficient mechanisms to encourage long-term holding, leading to immediate sell-offs instead of sustained commitment.

• Liquidity Shortage: Limited liquidity for new projects, causing excessive volatility and hindering ROI realization.

• Weak Business Strategy: Poor deal flows, weak branding, and a focus on short-term gains rather than sustainable product quality and community support.

• Subpar User Experience: Complicated or inconsistent user interfaces that make participating in IDOs unnecessarily difficult.

Our Solution

At OruxAI, after reviewing the different approaches used by IDO launchpads, we aim to simplify the process and make it more accessible for our users.

We have chosen to combine two models: a) Guaranteed Allocations; b) Lottery-Based Distributions;

This hybrid approach ensures fairness by giving users reliable access to IDO fundraising opportunities while still offering a chance-based system that broadens participation.

In addition, a first-come, first-served mechanism will be available for supplementary allocations (see First-Come-First-Serve Section).

For further details on the components and flow of OruxAI IDOs, refer to The IDO Steps.