DODO is a decentralized exchange based on Ethereum and Binance Smart Chain that intends to increase the availability of DeFi liquidity. DODO, unlike many other DEXs, has its own proactive market maker algorithm rather than an automated market maker algorithm. DODO claims that its PMM approach offers superior pricing stability and liquidity than AMM DEXs. SmartTrade, a DODO solution, permits exchanges across tokens on the same network. It also offers the best pricing to traders by automatically determining the appropriate order routing from pooled liquidity sources. The Crowdpooling function enables projects to launch liquidity markets and distribute tokens in an equitable manner, without the danger of frontrunning or bot involvement. New projects can also generate funding by listing for free on the platform's inaugural DODO offering function.
DODO is the platform's BEP-20 and ERC-20 utility coin. It is utilized for platform governance, staking, Crowdpooling and IDO participation, as well as compensating stakeholders and miners. DODO also gives trading fee savings and may be used to mint vDODO, which provides further membership advantages and trading fee dividends.
DODO is a newbie to the DeFi industry, having started in August 2020. The platform's creators go under the aliases Dianne Dai and Radar Bear. DODO received a 600,000 USD initial round in August 2020, followed by a massive 5 million USD fundraising from a group of venture firms led by Binance Labs, Pantera Capital, and Three Arrows Capital. DODO's future appears to be bright, with private sales piqueing the attention of big crypto heavyweights such as Coinbase Ventures, CMS Holdings, and Galaxy Digital, among others.
How does it work
Large swaths of data in the market indicate buyer and seller emotion, and changes in this data drive the market to react dynamically. Compression can isolate the most relevant pieces of data, and in the case of crypto trading, the most crucial attribute is liquidity. According to the usual market making formula, the price of the base token climbs linearly as the number of base tokens exchanged increases. The linear model, however, has drawbacks. For starters, it is oversimplified since it does not account for the unequal distribution of liquidity generated by concentration around the midpoint. Second, once the price crosses specific thresholds, the linear model yields a liquidity of zero, even when liquidity exists at that price.
The DODO team created the nonlinear proactive market making algorithm wholly in-house in order to deliver more advantageous pricing via a method that is very flexible and designed for on-chain transactions. The PMM may be customized for a variety of applications. The PMM algorithm may gather mid prices from external marketplaces with bigger volumes and change them proactively to achieve higher capital efficiency than AMM platforms and limit temporary loss. The PMM also reduces barrier to entry for smaller projects and can be made fully customizable with free market trading to create the DODO private pool.
Total supply and circulation
Out of a total of 1,000,000,000 DODO tokens, there are now 417,946,317 in circulation. 60% of DODO's entire supply is set aside for community rewards, 15% for the team and advisers, 16% for investors, 1% for initial liquidity provision, and 8% for partnerships, operations, and marketing.
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