IDO uses decentralized exchanges (DEXs) for initial liquidity, where users stake
tokens to mint new liquidity provider (LP) tokens, which are then included at the time of
token release. This model promotes informed decision-making and encourages innovative
trading strategies.
By distributing tokens to trusted crypto users for project development, IDOs
facilitate DeFi projects' initial liquidity offerings. The process is automated through
smart contracts, ensuring both transparency and anonymity. IDO platforms offer strong
security features, making them trustworthy for investors while fostering a transparent,
cost-effective alternative to traditional fundraising methods.