What is an Initial Dex Offering (IDO)?

Maciej Zieliński

15 Mar 2022
What is an Initial Dex Offering (IDO)?

The development of the cryptocurrency industry and IDO is progressing every year. Thanks to this, new ways of raising funds appear frequently. Initial Dex Offering is one such form. This is one of several ways to raise funds for crypto projects. It is worth noting that the first approach to raising funds for a project's token was the Initial Coin Offering (ICO), which in 2017 brought many advantages and negatives. At the same time, ICO has led to the fact that many investors have become millioners within a few days. How does ICO compare to IDO? Why can IDO be a more interesting concept for raising funds? We are writing about this in thie article below!


As we have written earlier, ICO is an unregulated approach to crowdsourcing funds from retail investors. In the crypto space, the main challenges of initial coin offering were related to lack of control and protection of investors' funds. Cryptocurrency projects access was based on complete trust. ICO creators were not due diligence tested. This has led to a time when almost every initial coin offering project could promise significant profits - but these promises have repeatedly proved to be empty.


Many ICO projects have simply proved to be a fraud. Decentralized finance (DeFi) can help with this, as they aim to address this problem through alternative fund-raising models. One such model is the decentralized Exchange (DEX) model. DEX offers cryptocurrency investors access to another, more egalitarian model of crowdfunding in the crypto market.

What is a DEX offer or IDO?

It is worth noting that the original concept of the initial offers of DEX has changed enormously over the years and in its current most popular form has little to do with what it planned to implement at the start of the initial IDO (Initial DEX Offering). In fact, the initial offer of DEX is the successor to initial coin offering and IEO, because its goal is to collect money and launch the project. However, unlike ICO and IEO, in which tokens are sold before being listed, in the case of initial dex offering, they are immediately listed on a decentralized exchanges. For this reason, the name DEX was created.


What is the Raven Protocol? The first ever Initial DEX Offerings took place in June 2019 – it was called the Raven Protocol. The protocol team selected the decentralized Binance DEX exchange. They place a new token at a specific price, and the traders could buy it until the hard cap has been reached on binance dex. 

In theory, this particular way of fundraising had several powerful benefits, including:

  • Quick Trading
  • Immediate liquidity was achieved
  • An open and transparent means pf collecting money has been achieved

However, investors were not satisfied. The reason was that these symbolic sales would be sold out in a few seconds, leaving a small opportunity for the average investor to participate in the project. As a result of the immediate selling of the entire offer, there was speculation that it was done by bots. This is how the first initial dex offering start platforms, which are gaining popularity today, were formed.

What is a starting offer for DEX and IEO (Initial Exchange Offerings)

The first offer of DEX (IDO) is a way to raise funds that receives investment capital from retail investors. IDO was created to address the shortcomings of the 'traditional' model of cryptocurrency community funding, the initial coin offering. Given that IDO works with DEX, unlike centralized exchange, DEX can be regarded as a decentralized liquidity exchange. Decentralized liquidity exchange and  initial dex offering is the latest model for funding cryptocurrency projects that want to raise funds from investors. However, let us remember that DEX is less scalable than ICO and IEO, and many trading processes are based on DeFi platforms

Token Generation EVENT and decentralized exchange

Today, in its most popular iteration and form, the initial offers of DEX are particularly similar to Initial Exchange offerings (IEO) with some key differences.

  • In the case of IEO, it was an echange which reviewed projects and conducted token sales. With initial dex offering, it is a third-party platform that checks the stock exchange, while token sales themselves take place in a slightly decentralized manner.
  • In theory, anyone can raise funds through IDO (initial dex offerings) using a third-party start platform because everything he or she would have to do is open the pool.
  • The way it works is quite simple. The project is sent to the starter, and if it meets the requirements, it is selected for the initial dex offering. The process itself may vary from one starter to another, but the concept is always the same.
  • There is a pool from which users can buy an "IOU" of the token that the project wants to run. The IOU is a confirmation of the debt. In other words, investors pay for their tokens in advance, but receive them at the Token Generation Event (TGE), which usually takes place very shortly after the IDO itself (usually within a few hours).
  • Once the IDO has been successfully concluded and TGE has started, the token is immediately traded on a decentralized exchange. In most cases, this is the case with Uniswap because the vast number of projects is still built on Ethereum and their tokens are based on the ERC20 protocol standard.

However, other blockchains are also gaining popularity, including Solana, Polkadot and Binance Smart Chain (BSC). Therefore, some projects prefer to run their tokens on them to avoid high network charges in Ethereum. In this case, the token would be listed on a native stock exchange, such as the BSC’s PancakeSwap.

How do IDO cryptocurrencies work?

IDO (initial dex offering) works because DEX can provide instant liquidity for tokens based on smart contracts. That is why DEX tends to reward liquidity pool providers with attractive rewards. Liquidity pools allow DEX to operate without unexpected problems for their users. In order to help trade, most projects provide liquidity to DEX by allocating a part of the funds. This approach has become standard practice. Many projects are also supported by the “Proof of Stake (POS) mechanism. The POS consensus is designed to keep the network secure. But in this case, the mechanism mainly serves to discourage investors from selling tokens too fast. This ensures that investors hold their token capital in their portfolio. In return, they earn rewards for their "participation" in the network. Then, when the project is launched, investors can immediately start trading the token. Investors who have purchased tokens faster can sell them at a higher price when initial dex offerings begins to operate. When the public sale starts, the token value increases.

Fees and smart contracts

In the event of an ecchange, the fees for the performance of the new smart contract are negligible, as the trading pairs provide a high degree of liquidity. Smart contracts help manage the asset token and the liquidity pool. It should be stressed that unlike traditional fund-raising models, IDO can immediately create tokens. In addition, any meaningful IDO project can be qualified to raise funds from retail investors. The same can be said about avoiding the high costs of Initial Exchange Offerings (IEO). Investors do not have to wait long for the desired tokens to appear on the stock exchange. The list usually appears immediately after the initial dex offerings is complete. This time allows investors to make money on their investments much quicker compared to initial coin offering .

Pros and cons of IDO

Like any funding method, IDO has its advantages and disadvantages for project's token, which we have decided to present below:

Pros of IDO

  • Availability - IDO has no procedures that can be associated with IEO. As a result, many people can raise capital without unnecessary bureaucracy.
  • Speed - investors are quickly informed of the arrival of tokens on the stock exchanges and start trading because they have immediate access  to trade. The listing occurs almost immediately after the IDO has ended. Its good for token projects. 
  • Immediate liquidity - in connection with the promotion of PoS, significant capital is leftavailable on the stock exchange, thus improving its liquidity.
  • Transparency - anyone can review token contracts and projects beforehand.

Cons of IDO

  • Verification - the low level of verification leads to many rogue creators who attempt to defraud funds.
  • Competition - it is extremely difficult to participate in IDO because of a huge number of competitors who wish to purchase tokens.
  • Token sharing - most tokens in IDO generally reach the team and private investors first, and afterwards to the rest of the entities.
  • However, IDO still seems to be an attractive form of investment, with little bureaucracy and tempting, significant profits.

Crypto projects offered by IDO are lightning-fast. The initial waiting period for selling tokens at the exchange is short, which allows many people to profit quickly. Unfortunately, these offers are often attractive and, as a result, an average crypto trader may not be able to make the purchase in time, as you will see if do your own research into the matter. Moreover, IDO are not usually present on centralized exchanges, which means that they are also directed towards a smaller group of people. However, IDO is attractive due to the lack of bureaucracy, quick access to funds and the immediate provision of liquidity to the platform.

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What is Account Abstraction?


10 Nov 2023
What is Account Abstraction?

Account abstraction is a new way of thinking about how users interact with blockchains. Instead of using traditional externally owned accounts (EOAs), account abstraction allows users to create and manage their accounts using smart contracts. This has a number of potential benefits, including improved security, enhanced privacy, and increased flexibility.

What is account abstraction?

Account abstraction is a concept that, at its core, aims to simplify the user's interaction with blockchain networks. It is a transformative approach that seeks to mask the technicalities of blockchain operations from end-users. It is making transactions as straightforward as sending an email. Account Abstr. allows users to interact with the blockchain without worrying about the underlying technical details.

How does account abstraction differ from the traditional model?

In the traditional account model, each user has an EOA. EOAs are controlled by private keys, which must be kept secret in order to protect the user's funds. Acc. abstraction allows users to create and manage their accounts using smart contracts.

Historical Context

The journey towards acc. abstraction began with the first generation of blockchain technologies, characterized by their "one-size-fits-all" approach to account management. Bitcoin, for instance, introduced the concept of accounts and transactions in a form that was accessible to tech-savvy individuals but remained perplexing to the layperson. Ethereum expanded on this by introducing smart contracts, which opened the door to programmable transactions but did not alter the fundamental account structure. The idea of acc. abstraction has been discussed in the Ethereum community for several years as a part of various Ethereum Improvement Proposals (EIPs), particularly as a feature to be potentially implemented in Ethereum 2.0. It is a direct response to the need for a more versatile and user-centric design that can cater to a broader audience and spur the widespread adoption of blockchain technology.

The Technicalities of Account Abstraction

Account abstraction is not merely a theoretical construct but a technical innovation with specific mechanisms underpinning its operation. In essence, it alters the way transactions are initiated and executed within a blockchain network.

How Account Abstraction Works

Under traditional blockchain models, initiating a transaction involves an externally owned account (EOA) signing a transaction with a private key. This transaction is then broadcast to the network for validation and inclusion in the blockchain. Account abstraction, however, replaces this process with a more flexible one. Here, every account is a smart contract, and transactions are messages sent through these contracts. These smart contracts can encode complex rules for transaction validation, beyond what EOAs can do, such as multi-signature requirements or conditional transactions based on certain triggers.

The technical crux of account abstraction lies in the smart contract’s ability to define its own conditions for transaction execution. This means that user accounts can have unique security protocols or automated operations without the user needing to understand the underlying smart contract code.

Hey! Are you interested in the latest technologies in the blockchain area? be sure to read the article 'Top Zero-Knowledge Proof Projects to watch in 2023'

The Benefits of Account Abstraction

The implications of account abstraction are profound, offering a range of benefits that can enhance the blockchain experience for users and developers alike.

Improved User Experience

One of the most significant advantages of account abstraction is the improvement it brings to user experience. By abstracting away the complexities of key management and transaction rules, it presents a more intuitive interface for users.

Enhanced Security Features

Account abstraction also allows for the implementation of advanced security measures. Since each account can define its own logic, users can tailor their security settings to their specific needs. For instance, one might set up an account that requires additional verification for transactions exceeding a certain value or restricts withdrawals to certain addresses.

Future Implications

The future implications of account abstraction are vast. As the technology matures, it could become a standard feature of blockchain networks, potentially making the current distinction between user accounts and smart contracts obsolete. This could lead to a new wave of blockchain applications that are both powerful and accessible, bringing us closer to the vision of blockchain technology as a seamless part of everyday life.

Challenges and Considerations

Technical Limitations

One of the primary technical challenges of Acc. abstraction lies in its integration with existing blockchain protocols. Current networks are optimized for the EOA model, and introducing a new account structure necessitates significant changes to the core protocol. This includes modifications to the way transactions are propagated in the network, how gas fees are calculated, and how the state of the blockchain is managed. Ensuring that these changes do not compromise the network's performance or security requires careful planning and extensive testing.

Compatibility with Current Systems

Another consideration is the compatibility of account abstr. with the vast ecosystem of existing blockchain applications and services. Wallets, exchanges, and other services have been built around the traditional account model. Transitioning to an acc. abstraction model will require these services to update their infrastructure, which may be a complex and resource-intensive process. Furthermore, there is a need for standardization across the industry to ensure that different implementations of account abstr. can work seamlessly together.


Acc. abstraction represents a significant leap forward in the quest for a more user-friendly blockchain experience. By streamlining the transaction process and offering enhanced security features, acc abstraction has the potential to make blockchain technology more accessible to a broader audience. However, the path to widespread adoption is not without its obstacles. Technical challenges and compatibility issues must be carefully navigated to integrate it into the existing blockchain landscape.

Key Takeaways

How to Add Gnosis Chain to MetaMask: A Simple Tutorial


03 Nov 2023
How to Add Gnosis Chain to MetaMask: A Simple Tutorial

As the cryptocurrency ecosystem expands, there is an increasing need for various blockchains with distinct capabilities. Gnosis Chain enters the scene, offering a selection of unique characteristics. By integrating Gnosis Chain with MetaMask, users can access a more comprehensive array of decentralized services. We will walk you through the steps to add Gnosis Chain to your MetaMask wallet in this tutorial.


Setting up MetaMask

Before exploring the integration of Gnosis Chain, it is crucial to have MetaMask installed and operational:

  • Download and Install: If you have not done so already, visit the official website to download and install the MetaMask browser extension.
  • Setup Account: After completing the installation, create your account and make sure to remember the provided seed phrase. This phrase serves as your primary means for account recovery, so keep it secure.
  • Secure Your Account: Protecting your MetaMask account is of utmost importance. Use a robust password and never disclose your seed phrase to anyone.

Gnosis Chain

It is always helpful to have a basic understanding before incorporating any new blockchain into your wallet:

  • Gnosis Chain Overview: Gnosis Chain, a rising star in the blockchain world, brings a range of decentralized solutions to the table, such as prediction markets and decentralized trading platforms.
  • Benefits & Features: Among Gnosis Chain's main selling points are its accelerated transaction speeds and potentially lower fees when compared to congested networks.

Tutorial: How to Add Gnosis Chain to MetaMask

In the top right-hand corner of your browser, you'll find the wallet. If pinned, click on the MetaMask fox icon; if not, click the three dots in the top-right corner. The following screen will appear:

An option to expand the wallet to a new browser page is available by clicking "Expand view:"

This action will launch MetaMask in a new tab:

By clicking on the ‘Ethereum mainnet’ in the top left corner, you can add another network. Click ‘Add Network’

Choose option ‘Add a network manually’

Then, input the information below:

Network Name: Gnosis Chain formerly xDai

RPC URL: https://rpc.gnosischain.com

ChainID: 100

Symbol: XDAI

Block Explorer URL: https://gnosisscan.io

After saving the settings, Gnosis Chain will be added to your network.

The Benefits of Adding Gnosis Chain to MetaMask

With multiple blockchains becoming more common, integrating Gnosis Chain with MetaMask offers numerous advantages:

Expanded Capabilities: Accessing Gnosis Chain through MetaMask opens up a collection of exclusive applications and features inherent to this particular blockchain, which may include unique dapps or cutting-edge financial products.

Diversification: The crypto domain is extensive and constantly growing. By incorporating various chains like Gnosis into MetaMask, you broaden your potential investment opportunities and decentralized application experiences, ensuring no opportunities are missed.

Speed & Cost-Effectiveness: Network congestion and high gas fees on established platforms like Ethereum can discourage many users. Gnosis Chain's architecture has the potential to provide relief through quicker transaction times and more affordable fees.

In summary, as the possibilities within the crypto sphere continue to evolve, tools like MetaMask grant users access to this expanding world. By adding chains like Gnosis, users can stay ahead in this decentralized revolution.


By bridging platforms like Gnosis Chain with accessible tools like MetaMask, individuals not only amplify their engagement with decentralized applications but also fortify their position in this expansive realm. The integration of Gnosis Chain to MetaMask epitomizes the evolution of the crypto landscape – a testament to its ever-growing diversity and potential. As we continue to delve deeper into the decentralized future, tools and integrations like these will undoubtedly play a pivotal role in shaping our digital experiences and opportunities. Whether you're seeking more efficient transactions, diverse dapp interactions, or simply a broader understanding of the crypto ecosystem, this guide's steps open doors to a new horizon.