Initial Liquidity Offering (ILO)
On this page you will find everything you need to know about creating your own ILO.
Initial Liquidity Offering (ILO) is a fundraising mechanism through which many projects and startups raise funds by selling tokens on the DeFi based Decentralized Exchanges without undergoing the process of ICO.
In other words, ILO allows you to raise funds and immediately after launching, the liquidity pool will be created which allows your investors to start trading right away.
UNCX ILO v6 Presales smart contracts can be found on:
Before creating your ILO, take a look at our recommendations (you can find them below the guide), they will help you with planning your ILO to assure its success. Also, make sure to read through the important notes to ensure you don't miss anything.
If you already have your presale planned, you can skip that part and go ahead with the guide.
Location of "services" button in our UI
Then, just select our LaunchPad from the service list.
Afer that, you will be asked which blockchain and dex you want to create your ILO on.
Selecting a DEX
The next step is choosing the ILO type. For now, there is just one, so just select the "Fair sale" and proceed.
Selecting an ILO type
Now, you have to choose the token you want to use for your ILO. If you are using a token created by our ENMT Token Minter, it will appear on the left side as displayed on the screenshot below. If you already have your own token, just paste the address into the empty field.
Selecting your token
First thing you have to do is determine how many of your tokens will be up for your ILO, as well as set up the softcap and the hardcap.
Softcap: If the softcap is met, the markets can get initiated by a project owner/ILO creator, or they will be initiated automatically when the ILO ends. All unsold tokens will be sent to a burn wallet.
Hardcap: If the hardcap is met, it means all tokens were sold and markets can get initiated by anyone. For more information about ILO scenarios and ILO rounds, check this page.
Amount of tokens, softcap and hardcap
The next step is adjusting the listing rate, and deciding how many of the funds you raise you want to use for liquidity. Below the slider you can see how many additional tokens will be required for liquidity.
Next step is a prediction of how much your ILO will raise. For more information about fees check this page.
Next thing is setting up a max allocation per user. This setting simply sets a limit on how many funds a contributor can spend on your ILO.
Note: Max allocation affects the number of whitelist spots on round 0 (more information about round 0 can be found here): Lower allocation = more whitelist spots Higher allocation = less whitelist spots "UNCL spots" field can be ignored, as this is no longer a working feature.
Max allocation per user
This field allowed you to adjust the start of UNCL reservation round, which is no longer supported, hence you can skip this one. To read more about ILO rounds check this page.
Start date of the round 0
The next date you have to set is the date of round 1. As mentioned with the round 0, the UI displays your local browser time.
Start date of the round 1
This time you have to set the time of the preslae end. You can set it to every date you want except the past dates. The length of your presale is up to you.
Presale end date
Next step is selecting your country of operation.
Selecting your country of operation
If you have a referral address, you can enter it in the field displayed below.
To read more about our referral program, check this page. Note: remember to not leave that field empty and select a "No" option if you don't have a referral address. Otherwise you will not be able to create an ILO due to an error.
Referral address field
You can request a vesting for tokens sold on your presale, preventing them from being sold for a period of time. The vesting has to be done by the UNCX team member, selecting "Yes" option presented below does not lock the tokens. It just provides an information on your ILO page for your investors. To be eligible for token vesting, your project has to have:
- KYC done by one of our whitelisted partners
- Audit done by one of our whitelisted partners
- Appropriate tokenomics (Team tokens locked in our vesting contracts)
Selecting if information about vesting will appear
Information about vested tokens is presented below.
Information about vested presale tokens
Take a look at your fees, make sure you have enough of the required currency to pay the fee and the gas.
Fees for presale creation
Next thing is to check if your tokenomics look like you want them to. This chart will also be displayed on your ILO page.
Last two fields on the page inform you about how many tokens you need to launch your ILO and how many whitelist spots are available in your ILO. Note: despite the UI displaying "UNCL spots", this can be ignored as the UNCL reservation is no longer a working feature. Right now round 0 supports only whitelist spots.
Required tokens and whitelist spots
After you successfully created your ILO, you can edit it by selecting the "edit presale" button on your ILO page.
presale edit button location
You will be taken to the page presented below. From that page you are able to edit your icons and social media links, whitelist spots, start date and end date of your presale, or fail it and withdraw your tokens (not user contribution).
ILO edit page
First button takes you to the screen presented below. There you can adjust all your social links and token icon.
Note: to set your token icon you have to upload your image to imgur first. Then you have to right click on your image in imgur and select "copy link", then paste it into the field below. Your link should end in ".png".
Adding token logo and social links
Next button takes you to the whitelist edit. Just paste the addresses to the field presented at the bottom of image below and select "Add to whitelist". The upper field lets you check if a specific address is already whitelisted without going through hundreds of them manually.
Whitelist edit page
Another thing you can modify is your presale's start date and end date. It can only be changed before the start of the ILO.
Start date and end date edit page
Last thing you can do from the edit page is failing your presale. After you select "cancel this sale" you will be able to withdraw your tokens from the edit page.
Cancel presale page
Below you will find our recommendations on how to plan, create your ILO and set your tokenomics properly. If you already have your whole ILO planned, you can skip this section and proceed to the guide.
We will not get into the details of the non-technical part (social, marketing, integrity, etc.) of the preparation needed before you are starting a presale.
Do ensure though that (non-exhaustive list):
- You have a product that brings value to DeFi space and to your holders
- You are a project manager and are ready for the challenge
- Your goal is clear and you foresee the path to achieve it
- You are properly set in term of social presence
- Your marketing is ongoing or set to be launched on time
- The images and other material you use are not copyrighted
Your project and product(s) need to be sustainable in the long term and ideally survive a bear market. Your tokenomics need to support this vision (e.g. with proper token vesting and release over the coming years). There must be an incentive for people to hold your token, other than just taxes (consider our staking services).
With no product ("Pumpamental" is not a "Product"), it is a Ponzi Scheme and late comers/leavers will lose part of investment, or all of it, becoming "bag holders".
We recommend doing a KYC for your team by contacting one of our whitelisted KYC providers. This will grant you a presale badge stating that your team has went through a KYC process, which increases trust in your community.
We also recommend requesting a contract audit from one of our whitelisted auditors. This will prevent any contract-related problems down the line and also grant you a badge, letting your investors know if the contract is safe or not.
Note: if you used our ENMT Token Minter, audit will not be necessary as the token contract was already audited by our partners. The token is fully ERC-20 compliant.
It is recommended to test your ILO on Goerli testnet. On Goerli, you can test your ILO, Token minter, Token vesting and liquidity locking. It will allow you to find any possible issues that may happen without risking your investors' money and trust. Our Goerli testnet dapp is here.
Below are some recommendations, however every project is different hence your funding needs may differ slightly depending on your roadmap, product(s), etc.:
- 80%+ of your LP should be locked
- The majority of your tokens should be reserved for presale and liquidity. There could be some exceptions with very long term projects but only with proper, long term token vesting applied.
- The remaining tokens must be locked using our token vesting service. Other providers are not supported: locks from those providers will appear as "unlocked" in your ILO tokenomics chart.
- A very small amount can remain unlocked if required for your project, or be reserved as farming/staking rewards.
Below you will find a tool we've prepared for you to help you in planning your ILO. You will see few field which you need to adjust (only those with yellow background).
The last field will appear on a green background if your token supply is large enough for your ILO forecast. Consider extra tokens if required by tyour project and be ready to lock them after the creation of ILO
If the last field is red, it indicates your supply is not large enough for your ILO and you have to readjust it.
Our ILOs Platform is now under it's 6th version and each presale takes place in the order specified below.
- Round 0/Whitelist round: after the ILO is created, owner is able to use a round 0 feature by adding wallets to a whitelist. Whitelisted wallets are allowed to participate in a presale before the public round started. Whitelist round is not mandatory and not every presale will have it
(UNCX team will not provide you with a presale spot presales are managed by their respective teams and whitelist request should be addressed to them).
- Round 1: a public round open to everyone. During that round you can normally participate in a presale without a need of getting whitelisted or reserving a slot. There are also no holding requirements to participate.
- Round 2: If the presale wasn't filled in rounds 0 and 1, round 2 is triggered 2 hours after the end of round 1. Rounds 1 and 2 work in the same way.
Scenario 1: The soft cap of the ILO is met, and the end block of the second round is reached. Scenario 2: The hard cap of the ILO is met, prior to the end block of the second round.
Scenario 1: The soft cap of the ILO is not met by the end block of the second round.
Scenario 2: The markets cannot initiate due to errors in token's smart contract .
Scenario 3: A liquidity pool is created manually during the ILO.
Scenario 1: If the presale met the softcap, the markets can get initiated only by the presale owner. If the owner initiates markets after reaching the softcap, but not hardcap, unsold tokens will be burned and the pool will be normally created, allowing trading for token holders.
Scenario 2: If the presale met the hardcap, the markets can get initiated by anyone. The market init button will appear on the presale page. Met hardcap means all the tokens were sold. Pool is created and token holders can start trading.
Scenario 1: The softcap of the ILO is not met by the end of the presale. All participants can withdraw their contribution from the presale page. Owner can withdraw their presale tokens.
Scenario 2: Markets cannot initiate due to errors in the smart contract. All participants can withdraw their contribution from the presale page. Owner can withdraw their presale tokens.
Scenario 3: If the market pair already exists before the end of the ILO, markets will not be able initiate and the presale will fail. All participants can withdraw their contribution from the presale page. Owner can withdraw their presale tokens.
Initiate Market/pair button appears as soon as the ILO is in "Success" status and this button can be clicked by anyone to initiate the markets.
Within one transaction, it will:
- create a liquidity pool using "token of ILO" + "currency used to purchase" (BNB, ETH, BUSD, MATIC, AVAX, etc.)
- send to the newly created pair the % of funds (60-100%) reserved for the liquidity
- send the rest (0-40%) to the ILO creator
- time-lock the LP token as per the parameters of the ILO
- burn the unsold portion of the tokens in case the hardcap wasn't reached
This will effectively make the token purchased during the ILO tradable on the target AMM.
Before reading the guide, we recommend reading these important notes. Below you will find a list of things you have to know to properly launch your ILO without any issues:
- We highly recommend getting your contract audited by one of our whitelisted auditors. UNCX Network is not an audit company and will not fix your code nor audit it if something goes wrong
- We highly recommend to complete KYC with one of our whitelisted KYC providers
- Failed ILO is not refundable. Creators of the project are responsible for setting achievable goals for their ILO and achieving them
- Launching tokens with extra large supply(for example 1,000,000,000,000 or more) might cause issues when initiating markets on some AMMs handling only smaller supplies, like PancakeSwap
- Ensure you have no circulating tokens (no holders) before the ILO creates the liquidity pool. If anyone creates the same pair as the one your ILO is supposed to, it will fail your ILO due to the price/ratio mismatch
- Do NOT use a hardware wallet(like Ledger, Trezor etc.) as some signatures are not recognized by some of these devices
- We recommend using only MetaMask wallet to create and interact with your ILO
- If the ILO fails by not reaching the softcap before the end of round 2, investors can withdraw their contribution and you can withdraw your tokens used for ILO
- Unsold tokens are burned if your ILO is successful but hardcap was not reached
- Whitelisted round 0 (before ILO) and round 1 (public round) functionalities cannot be altered. Round 2 is exactly the same as round 1 and triggers 2 hours after round 1.
- Know your own code, test your ILO on the Goerli testnet. UNCX Network is not an audit company and will not fix your code nor audit it
- Act with integrity with your community, prove to them and to yourself that you can launch a fantastic project, follow your initial roadmap, be open, be accountable, do not hold their funds hostage
Whitelist the ILO contract addresses
It is highly recommended to whitelist the ILO contract from all these special mechanisms.
You should whitelist as well your ILO contract (generated from our main ILO smart contract) which you can find at the end of your ILO's URL, as pictured below:
Your ILO's contract address
Below are some of the features that typically prevent a proper market initialization and some recommendations on how to adjust them. This should not be considered as an exhaustive list, as new functions are constantly created and implemented in newer contracts.
Those settings are on the blockchain under the "WriteContract" section of your token.
Before your ILO starts
- setLiquidityFeePercent to 0
- setMaxTxPercent to 100
- setSwapAndLiquifyEnabled false
- setTaxFeePercent 0
- And any other functions that can prevent a proper market initialization
When your ILO has finished ("Success" status)
- Call finalize (i.e. Create pair and initiate markets), unless already done by someone (the function to initiate markets is public)
Your ILO has ended and the market has opened
- setSwapAndLiquifyEnabled true
- setLiquidityFeePercent (To your lp tax fee amount)
- setTaxFeePercent (To your reflect fee amount)
- setMaxTxPercent to original value
- And any other functions you may have temporarily adjusted
As developers implement new functions, restrictions, features, and so on, there is an unlimited amount of possibilities for the market initialization to fail. Ensure you review your code thoroughly, including, but not limited to:
Anything having "max" or "percent", but not only, should be reviewed.
Double check as well that the router used (uni v2, pcs v2, etc.) is correctly set based on the AMM you are launching your ILO on.
Finally, do test everything under Kovan to ensure a smooth launch when you switch to mainnet.