DODO —— A Decentralized Exchange Leveraging the Proactive Market Maker Algorithm
- DODO is a decentralized exchange leveraging the Proactive Market Maker (PMM) algorithm built on Ethereum and Binance Smart Chain (BSC). Focused on making DeFi liquidity more accessible, DODO’s permissionless product suite consists of SmartTrade trading and aggregation, Crowdpooling/Initial DEX Offerings (IDOs), pools, and mining.
- The DODO token is the native governance token which also grants holders trading fee discounts and Crowdpooling/IDO allocations on the platform. DODO tokens can be staked to mint vDODO, which are non-transferable tokens that serve as proof of membership in DODO’s loyalty program.
- Dodo was officially launched in August 2020, founded by Diane Dai, Radar Bear and an anonymous development team. It initially attracted a $600,000 seed round led by Framework Ventures.
- The total supply of the DODO token is 1 billion (1,000,000,000). There are currently around 10 million coins in circulation.
DODO is a decentralized exchange leveraging the Proactive Market Maker (PMM) algorithm built on Ethereum and Binance Smart Chain (BSC).
DODO features capital-efficient liquidity pools that support single-token provision, reduced impermanent loss, and minimized 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 prices between any two tokens. In addition, it removes roadblocks hindering liquidity pool creation for the issuance of new assets such as asset ratios, liquidity depths, fee rates, and other parameters that can be customized and configured in real-time. DODO also introduced Crowdpooling, a permissionless, equal opportunity liquidity offering, as well as customizable technical solutions geared towards professional on-chain market makers.
DODO is the platform's native governance token with the following use cases:
- Governance: DODO token holders can create and vote on proposals to govern the platform.
- Crowdpooling & IDO Allocations: DODO token holders receive allocations to participate in Crowdpooling & IDO campaigns on the platform.
- Staking: Users can receive additional DODO rewards by staking their DODO tokens.
- Trading Fee Discounts: DODO token holders receive trading fee rebates when trading on the platform.
- Minting vDODO: Users can stake their DODO tokens to mint vDODO tokens in order to receive additional membership rewards and dividends from trading fees.
The total supply of the DODO token is 1 billion (1,000,000,000). There are currently around 10 million coins in circulation.
DODO’s total supply will be distributed as follows:
- 15% to the core team/future hires/advisors
- 16% to investors
- 1% to initial liquidity provision (IDO)
- 8% to operations/marketing/partnerships
- 60% to community incentives
Co-founder and CEO Radar Bear has extensive expertise and experience in blockchain technology and DeFi. Previously, he was the smart contract engineer of the DDEX team and was responsible for the liquidity business of the exchange. Graduated from Peking University, majoring in space physics and economics.
Diane Dai is the co-founder and CMO of DODO. He was responsible for marketing and brand building at DDEX. He is also the pioneer of popular science DeFi in the Chinese community. The DeFi The world he created is the most popular DeFi content community in China, he also has rich experience in content and brand building.
- SmartTrade trading and aggregation: Built on Ethereum and BSC, DODO enables trading between two arbitrary tokens on the same network, with SmartTrade intelligently finding the best order routing from aggregated liquidity sources to give traders the best prices.
- Crowdpooling: An equal opportunity way to distribute tokens and kick-off liquidity markets. Crowdpooling attempts to eliminate the chances of front-running or bot interference.
- Pools: Pools give liquidity providers the flexibility to create and manage their own on-chain market making strategies in a fully permissionless, non-custodial manner.
- Mining: DODO platform users can earn DODO token rewards by engaging in liquidity mining, trade mining, and Combiner Harvest mining, which are geared towards liquidity providers, traders, and pool creators respectively.
Active market maker algorithm PMM: a universal liquidity framework
The current method of describing liquidity is mainly linear description, which has two limitations:
- In the real market, most of the liquidity is concentrated near the middle price of the market, and the linear description does not reflect this unbalanced distribution;
- Even if the price deviates far from the market median price, there should be liquidity, and the price under the linear description has upper and lower limits.
Therefore, non-linearity is introduced into the price curve. Under the premise of not expanding the parameters, the depth distribution is more in line with the market law, and the flexibility is higher. The PMM algorithm is a high compression of the Orderbook market, with simple parameters but extremely flexible.
The PMM pricing mechanism, which mimics human trading, utilizes oracles to gather highly accurate market prices for assets. It then provides enough liquidity close to these prices in order to stabilize the portfolios of liquidity providers (LP), lower price slippage and negate impermanent loss by allowing arbitrage trading as reward.