What is IDO
An Initial DEX Offering (IDO) occurs when a crypto project makes its token or coin available for purchase on a decentralized exchange platform for the very first time. The objective is to raise funds from supporters to be invested in the development of the project. An IDO presents several advantages compared to an ICO (Initial Coin Offering). An ICO refers to when a crypto company first launches its cryptocurrency on a centralized exchange.
In the absence of an intermediary, decentralized platforms rely on liquidity pools and smart contracts. Therefore, IDOs are characterized by instantaneous liquidity and lower costs. Moreover, through an IDO slippage could be mitigated or evaded.
Binance DEX, Uniswap, and Polkastarter are prominent decentralized exchanges that provide IDO services.