What is DODO? What does it offer? Where this feature is available?

What is DODO?

First, DODO is a Decentralized Exchange (DEX) running on Ethereum and Binance smart chain. It is developed by the DODO team.

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, Crowd pooling/Initial DEX Offerings (IDOs), pools, and mining.

DODO is a decentralized exchange based on Proactive Market Maker Algorithm. This Proactive Market Maker Algorithm has an upper edge over AMMs as it offers-

a. Capital-efficient liquidity pools

b. Reduced impermanent loss

c. Minimize slippage for traders.

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DODO- Smart Trading and Aggregation

It allows the trading between any two tokens based on the same network by aggregating liquidity from different DEXs. Basically, offering traders the fastest and cheapest routes to switch assets.

This feature is available on Ethereum.

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DEXs – Innovativing their way to greater Liquidity.

Several liquidity innovations have helped drive the boom in DEX trading volume. Liquidity mining offers you as an investor if you are willing to set up liquidity pools a new type of asset that is governance tokens.

Basically, it gives you influence over a project as an incentive. These proliferated throughout 2020. Many platforms are also taking steps to offer liquidity providers more sway over the maximum and minimum prices for their liquidity pools.

Perhaps, the most common tool used by decentralized exchanges to boost liquidity is the Automated Market Maker. These rely on liquidity pools provided by you.

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How DODO is Beneficial?

Primary crypto markets have their own liquidity issues. In initial offerings of tokenized assets, liquidity is inherently limited in that bidders can only buy and not sell.

So now, DODO has developed a liquidity solution for primary markets as well.

Chiefly, DODO is a next-generation decentralized exchange operating on the Ethereum and Binance blockchains.

It is designed to deliver all the advantages of a distributed platform. Plus a user-friendly interface and liquidity that is comparable to centralized systems.

In its quest to become the decentralized v exchange of choice for the distributed finance space, DODO has built a suite of features that offer something for every type of you.

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Benefits

First, traders benefit from capital-efficient liquidity pools. Which essentially helps minimize impermanent loss and slippage between the actual and requested prices.

Arbitrageurs can monitor price discrepancies between DODO and other exchanges.

And then, with no minimum deposit and the ability to use single tokens, liquidity providers can create a market with tokens they already own. Without taking on pricing risk.

Second, DODO’s ground-breaking Proactive Market Maker (PMM) algorithm uses oracles to determine the actual price of an asset.

Third, the system is designed to provide sufficient liquidity at or near this market price and to reduce availability further out. Thereby, making it more efficient than traditional Automated Market Makers.

Most importantly, the PMM algorithm underpins a set of unique tools that combine the best aspects of centralized exchanges without the well-known downsides.

Decentralized exchanges have tried a range of ways to solve this puzzle, all of which have their own drawbacks.

Drawbacks

Bonding curves, where the token’s price rises along a pre-set arc, allow for frontrunning by profit-seeking speculators. Thereby, to the detriment of genuine investors who care about the project they are seeking to support.

Automated Market Maker platforms generate liquidity by requiring issuers to put up the other side of the trade themselves. But this is a cost many start-ups cannot afford.

Then there is the yield of farming. Where liquidity providers stake cryptos to maintain the bid side of trades in exchange for tokens.

This can be a temporary and costly solution. And yield farmers, with little interest in the projects themselves, can dump the base coins afterward. And drive down prices on secondary markets.

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How does it Work?

Traders get lower slippage with PMM than Automated Market Makers (AMM).

PMM leverages price oracles to retrieve accurate market prices of assets as input. It then aims to provide sufficient liquidity near the market price for every asset. The result is that liquidity decreases rapidly when far away from the market price.

Crowdpooling – DODO

In January of this year, DODO launched a new approach to liquidity that is Crowdpooling.

Conversely, in initial offerings of tokenized assets, liquidity is inherently limited in that bidders can only buy tokens and not sell them.

Liquidity in DODO is gathered via Call Auction Mechanism wherein all traders are batched together and then executed at a predetermined interval at a best-match price.

This ensures there is no front-running or bot interference.

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Advantages of Crowdpooling

Chiefly, DODO developed crowd pooling, a liquidity paradigm designed to work for everyone.

With crowdpooling the name is a blend of “crowdfunding” and “liquidity pool”.

Issuers are able to offer assets at low cost and provide highly liquid capital pools for investors.

Inspired by the call auction mechanism common in securities markets. It is protected from both frontrunning and bot interference and offers a guaranteed liquidity protection period.

So investors can support projects they believe in with peace of mind.

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Innovative Solutions – DODO

Widely it offers many other customizable technical solutions.

You can interact with the platform via various integrated wallet applications.

As an aggregator as well as a decentralized exchange, the platform supports efficient on-chain professional market marketing.

Project owners as well as market makers can control and execute their market-making strategies by adjusting parameters such as market mid-price, liquidity depth, and speed.

What is Combiner Harvesting?

Along with trading and mining, you can also take part in Combiner Harvesting. A program aimed at giving platform users exposure to promising projects willing to collaborate with DODO.

Under this system, approved projects can create liquidity pools on DODO. And those who provide liquidity for these pools will earn DODO reward tokens.

And DODO membership pays. Proof-of-membership tokens vDODO entitle you to a share of trading fees. As well as, other membership rewards and holder benefits.

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PMM(Proactive Market Maker)

PMM is a new market-making model in Blockchain. 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.

PMM Vs AMM- DODO

In an AMM assets are always held in a 1:1 ratio thus giving no flexibility to the LP and making them prone to Impermanent Loss.

In the case of PMM, the asset ratio can be set by the LP.

AMMs also govern the price solely by quoting the price according to the qty in the pool. In a PMM oracles can be introduced that guide prices.

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Liquidity

One of the reasons centralized crypto exchanges have had a start in attracting investors. Particularly, those new to crypto.

Generally, they hand over their funds to a third party, which executes transactions on their behalf, based on the prevailing market price.

Since liquidity on centralized exchanges depends on the number of buyers and sellers prepared to make deals at any given time.

More popular exchanges are more able to provide fast transactions close to the prevailing price. Thus lessening volatility and risk. In effect, a self-reinforcing circle.

Until last year, when a surge of interest in Decentralized Finance ate away at centralized platforms’ volume lead.

DEXs had to use technology to boost liquidity in the absence of the vast numbers of counterparties on centralized exchanges.

To solve a number of problems like these, DODO offers a Smart Trade trading and aggregation system. Which finds and compares various liquidity sources to find the best prices between any two tokens.

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Liquidity for Non-Standard Assets

In Marth this year, DODO announced plans to roll out its latest ground-breaking offering in the second quarter. A price discovery and liquidity protocol for NFTs.

The idea is not a new one. By breaking up NFTs or groups of NFTs (e.g.a series of works by one creator) into smaller pieces and issuing these as fungible tokens.

It is possible to foster a highly active and efficient secondary market.

Prior to DODO NFT, though there has not been a solution that could offer enough cost-effective liquidity to ensure success. With its PMM and liquidity pool feature, it aims to solve this.

Issuers will be able to deposit individual or grouped NFTs into the DODO NFT Vault. An on-chain repository for any type of NFT item. From vlogs to photographic collections.

This vault is then broken up into tradable fragments.

The protocol is structured to allow issuers to set the starting price for a fragmented token at a minimal cost. And without committing any capital.

These tokens can then be freely traded on other crypto exchanges, both centralized and decentralized.

This type o NFT is the latest step in a quest to become the best on-chain liquidity provider in the game. Especially, for standard and non-standard assets alike.

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A Better Decentralized User Experience?

Defi is booming as the world warms to the advantages of decentralized crypto exchanges or DEXs, over their centralized counterparts.

DEXs offer anonymous user anonymity, user control, and greater safety from outages, hacking, theft, and manipulation.

But for these platforms to truly succeed, something more is needed.

So, what is that secret extra ingredient? It comes down to usability.

To thrive, a DEX must address the real and perceived disadvantages of decentralization, lower liquidity, higher volatility, and, to some bewildering complexity.

In other words, the DEXs that will come out on top are those that have nailed customer experience.

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Conclusion

Feature-rich and efficient DODO is designed as the on-chain provider that works for everyone.

DEX activity has picked up steadily. And with innovations like crowd pooling, decentralized liquidity is now a reality.

That means, the crypto space finally has the tools it needs to enable truly decentralized economies. And DODO is leading the charge.

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