<p>There is a blog post that describes it quite well: <a href="https://sundaeswap-finance.medium.com/sundaeswaps-upcoming-initial-stake-pool-offering-iso-48fade1900a" rel="nofollow noreferrer">https://sundaeswap-finance.medium.com/sundaeswaps-upcoming-initial-stake-pool-offering-iso-48fade1900a</a></p>
<p>Basically they will create a Cardano stake pool and you can delegate your ADA to this pool from your Yoroi or Daedalus wallet. The pool will take 50% - 100% margin fee (to fund the SundaeSwap developers). This means you will get less ADA as rewards from the pool. To compensate for this, they will send you some of their new SundaeSwap tokens.</p>
<hr />
<p>EDIT: There is a more in depth blog post <a href="https://www.sundaeswap.finance/posts/iso-update-1" rel="nofollow noreferrer">here</a>.</p>
<hr />
<p>EDIT 2: On 11-JUL-2021 there was an update from the SundaeSwap team.
You can read it here: <a href="https://www.sundaeswap.finance/posts/iso-update-3" rel="nofollow noreferrer">https://www.sundaeswap.finance/posts/iso-update-3</a></p>
<p>They changed it to a 0% margin fee model that only lasts for 5 epochs. It will be launched together with the DEX shortly after the Alonzo launch on mainnet.</p>

CC BY-SA 4.0
2021-08-26T19:29:07.250Z
"...the ISO funding model is distinct, and does not represent the sale of a security." do they have a layer backing up this claim? I see that people will do this because they think that their tokens will be more valuable in the future and that will be treated as security. Or am I missing something?
--- edit
Or the "trick" is that one is paying in the future rewards and not "money" that one has "at the moment". Sill would be nice to see some layer opinion about it :)
sloik
CC BY-SA 4.0
2021-08-26T19:48:11.327Z
Looks like they are planing to show this legal framework: https://www.sundaeswap.finance/posts/iso-update-3
sloik
CC BY-SA 4.0
2021-05-21T10:27:36.623Z
2021-08-26T05:27:17.550Z
2021-08-26T05:27:17.550Z
eddex
<p>The decentralized exchange Sundaeswap is planning an initial stake pool offering (ISO) on Cardano.
How does it work and what are the differences/advantages over an ICO?</p>

<stake-pool><staking>
What is an Initial Stake-pool Offering (ISO)?
# What is an Initial Stake-pool Offering (ISO)?

(Asked by: username_0 on 2021-05-21)

The decentralized exchange Sundaeswap is planning an initial stake pool offering (ISO) on Cardano.
How does it work and what are the differences/advantages over an ICO?

**Tags:** stake-pool, staking

---

## 1 answers

### Answer by username_1 on 2021-05-21. Score: 13 | Accepted answer

There is a blog post that describes it quite well: <https://sundaeswap-finance.medium.com/sundaeswaps-upcoming-initial-stake-pool-offering-iso-48fade1900a>

Basically they will create a Cardano stake pool and you can delegate your ADA to this pool from your Yoroi or Daedalus wallet. The pool will take 50% - 100% margin fee (to fund the SundaeSwap developers). This means you will get less ADA as rewards from the pool. To compensate for this, they will send you some of their new SundaeSwap tokens.

---

EDIT: There is a more in depth blog post [here](https://www.sundaeswap.finance/posts/iso-update-1).

---

EDIT 2: On 11-JUL-2021 there was an update from the SundaeSwap team.
You can read it here: <https://www.sundaeswap.finance/posts/iso-update-3>

They changed it to a 0% margin fee model that only lasts for 5 epochs. It will be launched together with the DEX shortly after the Alonzo launch on mainnet.

> **Comments:**
> **username_2**: "...the ISO funding model is distinct, and does not represent the sale of a security." do they have a layer backing up this claim? I see that people will do this because they think that their tokens will be more valuable in the future and that will be treated as security. Or am I missing something? --- edit Or the "trick" is that one is paying in the future rewards and not "money" that one has "at the moment". Sill would be nice to see some layer opinion about it :)  
> **username_2**: Looks like they are planing to show this legal framework: https://www.sundaeswap.finance/posts/iso-update-3  

---

