Dodo is a decentralized exchange that concentrates primarily on facilitating the availability of DeFi liquidity. The platform, like the vast majority of other platforms that use automated market makers, uses its own proactive market maker (PMM).
The PMM technique replicates human trading by utilizing oracles to acquire high acute prices. The network's products also include smart trade, which facilitates token trading on the same network at the lowest possible price. In addition, the platform provides high-capital-efficiency liquidity pools that offer single-token provision, thereby minimizing temporary loss.
Diane Dai, Radar Bear, and an unidentified team of developers started the Dodo platform in August 2020. Framework Ventures handled the seed round, which gave the site its first $600,000 in funding. In September 2020, Pantera Capital, Binance Labs, and Three Arrows Capital led a private sale fundraising round for the platform, which raised $5 million.
The first point to mention is that Dodo promises to be able to provide superior liquidity than AMMs, including Uniswap. Dodo states that its PMM pricing process is similar to human trading and that it employs oracles to obtain exceptionally precise asset market prices. Next, it gives a certain amount of liquidity in order to meet the possible orders. In other words, it generates liquidity only when needed, making it more precise and less wasteful.
Additionally, Dodo asserts that its pricing is more stable than that of competing products. When it gives liquidity to its users, it tries to give liquidity at prices close to those of the market. This is done to keep the holdings of the liquidity providers stable and less price slippage. At the same time, by enabling arbitrage trading, its efforts can also aid in minimizing temporary loss.
The price of a token is predominantly determined by the token's market sentiments, which are reflected in its demand and supply. The Dodo team created a highly adaptable, nonlinear, proactive market-making algorithm that is meant to reflect the behavior of human traders. It is also designed to be used for on-chain transactions. The liquidity providers only have to put up one token for every pair they put up using the AMM algorithm. This implementation of PMM produces the DODO classic pool. Furthermore, the PMM lowers the entry barrier for smaller projects because freshly minted projects do not need huge capital. The DODO vending machine is created using this PMM application. The algorithm is also very flexible, and the DODO private pool can be made with free market dealing.
The use cases of the Dodo platform are: With its proprietary PMM algorithm, the platform provides competitive liquidity at low transaction costs and with minimal price slippage. The DODO platform modifies market pricing in real time to attract arbitrage, allowing liquidity providers to keep their portfolios steady. The platform provides more liquidity to buyers and sellers than any other centralized market. It provides free listing as an initial DODO offering to encourage the development of new cryptocurrency initiatives.
DATE NEWS/EVENTS IMPACT 01/10/2021 Kryptomon, a highly anticipated NFT game, has partnered with DODO to launch the KMON-BNB Liquidity Mining Campaign +20% Increase 18/02/2021 Dodo announced that its token will be available on Binance Smart Chain soon +180% Increase
DODO is notable as a decentralized exchange (DEX) because of its proactive market-maker architecture, which guarantees more liquidity and more stable prices than AMM protocols. The SmartTrade trading and aggregation aspect of the product is suitable for merchants seeking the best prices, while the Crowdpooling feature is advantageous for new cryptocurrency projects and investors. DODO has several advantages for liquidity providers, including the freedom to develop and run their own on-chain market-making methods, a reduction in price slippage, and the convenience of single-token deposits. The DODO coin has a variety of uses, and holding it provides platform users with a number of advantages. The DODO team's suggested incentive programs and activities could bring more people to the platform, which would raise the worth of the project and its cryptocurrency.
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