According to an announcement published by PancakeSwap, only 10% of the initial minted supply of the Horizon Protocol (HZN) token will be reserved for the IFO. HZN serves as collateral for the synthesis of tradable synthetic assets (zAssets), drives the reward system, and is expected to facilitate a DAO that will govern the overall protocol and future development.
PancakeSwap has pioneered the initial farm offering (IFO) fundraising model, providing DeFi projects with an innovative token sale model that uses farming events to generate funds for the projects. IFOs enable users to participate in “pre-sales” hosted on decentralised exchanges and obtain DeFi tokens before they get listed on exchanges.
The token sale model allocates farming rewards for PancakeSwap users and provides new projects with an incentivised liquidity pool. It allows sustainable yields to be generated for individual users and creates initial liquidity for the token being launched. To participate in an IFO, users need to provide CAKE-BNB liquidity on PancakeSwap. Once liquidity is provided, new tokens are bought using the generated CAKE-BNB LP tokens. PancakeSwap then provides the project with the collected BNB and burns the CAKE tokens.
Horizon is the first protocol to hold a token sale using PancakeSwap’s IFO 2.0 model. The new version introduces two distinct sale sessions—basic and unlimited. In the basic sale session, each user can contribute a maximum of $100 worth of CAKE-BNB LP tokens. The number of tokens available in this format will be around 30% of the total sale, lowering the barrier of entry for users. The unlimited session, on the other hand, has no limit on the amount each person can contribute, but includes a participation fee that starts at 1%. The fee decreases based on the percentage of overflow from the sale—the more users subscribe to the sale, the lower the fee.
The IFO token sale will begin on 15 April, at approximately 9 AM UTC, and will last for an hour. PancakeSwap expects to raise $2.5 million in CAKE-BNB LP tokens by selling 10 million HZN tokens.