DODO is a decentralized exchange platform powered by the Proactive Market Maker (PMM) algorithm. It features highly capital-efficient liquidity pools that support single-token provision, reduce impermanent loss, and minimize slippage for traders. The trading platform also offers SmartTrade, a decentralized liquidity aggregation service that routes to and compares various liquidity sources to quote the optimal swap rate between any two tokens. In addition, DODO removed all roadblocks hindering liquidity pool creation for the issuance of new assets - asset ratios, liquidity depths, fee rates, and other parameters can all be freely customized and configured in real-time. Based on this breakthrough, DODO has developed Crowdpooling, a permissionless, equal opportunity liquidity offering mechanic, as well as customizable technical solutions geared towards professional on-chain market makers.
DODO’s decentralized exchange product suite consists of SmartTrade trading and aggregation, Crowdpooling/IDO, pools, and mining (which includes liquidity mining, trading mining, and combiner harvest mining). It is integrated with various wallet applications through which users can interact with the platform.
- SmartTrade trading and aggregation:
Built on Ethereum and Binance Smart Chain (BSC), DODO enables trading between two arbitrary tokens on the same network. The SmartTrade feature intelligently finds the best order routing from aggregated liquidity sources to give traders the best prices. Users who execute trades on DODO also have the option to participate in trade mining, which rewards traders with DODO tokens.
Crowdpooling is an equal opportunity way to distribute tokens and kick-off liquidity markets. Inspired by the call auction mechanism commonplace in securities markets, Crowdpooling ensures that there is no front-running or bot interference. With the added security and assurance provided by a liquidity protection period, users are able to participate in liquidity offering campaigns and be involved in the projects they support with peace of mind.
DODO gives liquidity providers the flexibility to create and manage their own market making strategies through the DODO Vending Machine and DODO Private Pool. This is a fully permissionless, non-custodial process and users are empowered to configure pools with various parameters in order to establish liquidity markets with the ideal pricing curves that suit their needs.
In addition to the aforementioned trade mining and traditional liquidity mining, pool creators and liquidity providers can also get involved by participating in Combiner Harvest mining, which gives DODO platform users readily available exposure to trending, promising projects that are willing to collaborate with DODO. Vetted projects can create liquidity pools on DODO and liquidity providers of these pools will receive DODO reward tokens.
Proactive Market Maker (PMM) is a new blockchain market making model. It is different from the non-constant function market maker model, which separates the transaction-to-asset relationship. Parameters such as asset ratio and curve slope can be flexibly set. At the same time, an oracle machine can be introduced to guide prices or price discovery by the market on the chain. This oracle also gathers more funds near the market price and provides sufficient liquidity.
The Proactive Market Making (PMM) algorithm was developed entirely in-house and is an elegant, on-chain generalization of orderbook trading. It is adapted and optimized for operations on the blockchain and has proven itself to be highly performant and capital-efficient (as its high volume/TVL ratio can attest) with many innovative, flexible use cases in market making.
DODO provides the ability to issue new assets at the lowest cost and create highly liquid capital pools through Crowdpooling. There are no restrictions on the initial price nor the ratio of funds and tokens supplied.
DODO supports efficient on-chain professional market making. Any project owner, market maker, or retail investor can comprehensively control and execute their market making strategies in an efficient, flexible manner, by adjusting parameters such as market mid-price, liquidity depth, and spread. This liquidity on DODO can also be shared and is composable with other on-chain smart contracts.
DODO is both a DEX and an aggregator; it has its own liquidity pools and also supports trading between any two tokens available on the market.
The DODO token economics model introduces a membership system and a fee sharing mechanism. In addition to its governance functions, DODO gives holders trading fee discounts and IDO participation allocations. The system’s vDODO proof-of-membership tokens entitle holders to trading fee dividends and membership rewards, as well as the DODO holder benefits.