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While the above model is a typical ido crypto launchpad service token offerings are always changing. For example, we also have the IFO (Initial Farm Offering) model, which is becoming more and more popular. Whether it can be called traditional IDO is hard to say, but it relies on the same basic concepts: liquidity pools and decentralized exchanges.

Instead of locking the tokens directly, investors must first stake a Decentralized Finance (DeFi) LP to earn tokens from the pool. For example, a project that wishes to sell its token for BNB in an IFO on PancakeSwap will require investors to stake their BNB and CAKE into a BNB-CAKE LP.
Then the LP BNB-CAKE tokens are locked for the new tokens, and the project receives the BNB while the CAKE is burned. The amount of tokens you get will depend on how many participants there are in the sale, and any excess staked funds will be returned to you. There may even be measures in place for a fairer process to allow small investors to get a share of the IDO, such as the [Basic Sale] and [Unlimited Sale] features in the PancakeSwap IFO shown below.

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