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ILO for IDO launches

HOW DOES IT WORK?

Before the sale

Pools technology allows to launch NFT collections in same way as token launches. In that case launch of the new NFT collection is an IDO of pool tokens (with price discovery) instead of a regular candy machine mint. Example below is for the launch of a new collection with 500 total supply :
500 NFTs are added in the NFT pool = 500 pool tokens minted 500 pool tokens are then sold in IDO

After the sale

Pool tokens owners can use their pool tokens to redeem random NFTs from the pool for a defined period of time (equivalent to candy machine random mint). Then after the “random redeem only” period, the collection becomes a circulating collection with custom redeems also enabled (basically a regular NFT pool)

Practicals

  • Only a defined % (80% for example) of the pool tokens are for sale during the IDO (equivalent to a presale)
  • The remaining % (20% for example) of the pool tokens + a defined % of SOL raised during IDO will then be added as locked liquidity in the underlying Raydium LP (equivalent to a public sale)
By doing so
  • Presale/IDO participants can use their purchased pool tokens to random redeem NFTs from the NFT Pool
  • Public sale participants can buy pool tokens from the Raydium LP to random redeem NFTs from the NFT Pool (which creates positive price action on the pool token)

But what happens if presale does not sell out ?

We could do only price discovery IDOs where pool token price are defined by IDO participation and enabling the projects to define a softcap condition so that if the softcap not reached then the IDO is cancelled and refunded