Mindset IDO vs DEX

In preparation for the meeting with GnosisDAO I did some writing about the difference between IDOs and DEX:


  • on time event on a limited timeframe
  • projects do it once in a lifetime
  • it’s not price sensitive for the IDO project
  • investors have to use the IDO platform chosen by the project, there is no choice for them
  • some investors do it once in a lifetime
  • reputation is key for trust because it’s a one-time event
  • different IDO projects have different needs
  • service & consulting surrounding IDO can be a moat
  • fair price finding is key
  • ring trades are nice, but not a unique selling point
  • deploy a new tailored contract for every IDO is feasible
  • heavy and diverse regulation for investment in different jurisdictions

DEX (Ring-trade/Batched DEX like GP V1):

  • ring trade/batching of GP is unique selling point for low liquidity coins and fair price
  • liquidity leads to traffic (valid for all DEX)
  • liquidity has to stay on the protocol, upgrading is difficult and needs coordination with all liquidity provider users
  • trading is price sensitive
  • reputation/trust is built with ever trade/interaction
  • diverse users: arbitrage, bots, traders, investors, liquidity providers, IDO projects
  • many other venues to trade coins

What do you think?