GlossaryIntermediate
Initial DEX Offering (IDO)
A token launch conducted directly through a decentralized exchange, generally providing immediate on-chain trading liquidity.
An Initial DEX Offering (IDO) is a token launch conducted directly through a decentralized exchange, where a new token is made available for trading and typically paired with an initial liquidity pool at the moment of launch.
Compared to an ICO, an IDO generally provides faster, more direct on-chain liquidity and doesn't require a centralized party to hold funds during the sale, though it carries its own documented risks, including vulnerability to bots that attempt to buy a disproportionate share of a token immediately at launch.
Examples
- An IDO typically results in a token being immediately tradable on a decentralized exchange, unlike an ICO, which may have a separate distribution and listing process.
- Bots attempting to buy a disproportionate share of a newly launched token immediately at listing are a well-documented risk specific to IDOs.