Self-Serve IAOs: How to DYOR 🧐
Dear Apes,
Welcome to the world of Self Serve IAO’s, our newest most hands off DeFi feature at ApeSwap. Projects that utilize the SS-IAO platform are not handpicked by ApeSwap and have not passed our due diligence process. Unfortunately we don’t have the time or bandwidth to give every project deep analysis.
While this allows for a more streamlined approach to the launch process and embraces decentralization, it also involves more risk than anything else you could possibly do on ApeSwap. That is why it’s important that you make an informed decision when investing in SS-IAO projects.
Do Your Own Research (or DYOR) is a mantra you hear from every Joe Schmoe on youtube who wants to shill their favorite shitcoin but doesn’t want to take responsibility for the repercussions. I always found myself asking “what does DYOR really mean.” Thankfully, from one ape to another, we’re here to help you sort that out! 😊
Now for some juicy deets on our secret sauce here at ApeSwap.🤫 Here are a few important checks that can help you along in the process of researching a project. Yes, I’m about to show you what we’re looking for when we do the deepest analysis on a partner.
Audit check:
☑️ Is the project audited by a reputable company? ApeSwap’s preferred auditors are HashEx and Paladin.
☑️ Did the project pass the audit? Simply having a completed audit doesn’t mean that the project meets the standards of the audit firm. All critical/major high-severity issues need to be resolved.
☑️ Be sure that you are checking the audit report from a trusted source. The website of the auditor is often the safest option for reviewing reports.
Tokenomics and token distribution:
☑️ You’ll want to look for a well-balanced distribution of tokens. If the team is keeping the majority of tokens for themselves, that’s a red flag! 🚩
☑️ Be sure to verify token distribution on a blockchain explorer. You can verify that by visiting https://bscscan.com, entering the token contract address, and reading through the list of holders.
Vesting of team tokens:
☑️ Don’t forget to verify the vesting of team tokens on the blockchain explorer. You want to see that the tokens are vested over a long period of time. If the team doesn’t believe in their project, neither should you!
Extra steps that you should take:
☑️ Check the project’s social media links.
☑️ Look for how they manage their accounts. Is it done in a professional manner? Do they just talk about the price of the token? Wen moon Ser? Lazy Dev?
☑️ Are the channels actively managed by team members?
☑️ How much liquidity are they planning to add? More = better.
☑️ How long do they plan to lock the liquidity for? Longer = better.
I know this can be tricky and at times overwhelming. It’s definitely not easy to simplify a decision to ape-in down to a checklist. However, we want to emphasize that you can and should do research about the project to make better informed, and ultimately, more profitable decisions!
Read their docs, push yourself to understand them, and ask yourself the tough questions. Does everything make sense? Do I need one more dog token, or is 19 enough? I know the squid game token was a honeypot but baby squid game is too cute to steal my money, right?
If you don’t understand the project, seek help and start a discussion with your fellow apes in the SS-IAO reddit thread on ApeSwaps Reddit!
The main goal of the DYOR process is to understand the bigger picture; doing your own research will help make you a more informed and smarter ape!
With love,
Alpha (🍌, 💛)
