DODO is an on-chain liquidity provider, aiming to eliminate the problems of slippage and impermanent loss. Its proactive Market Marker (PMM) powers all the platform’s functionalities, resulting in minimal risks for liquidity providers and traders.
DODO’s Proactive Market Maker is unique in providing sufficient on-chain liquidity by amplifying AMM’s advantages yet overcoming AMM’s disadvantages. The PMM also imitates human market makers. These two aspects ensure that DODO meets the expectations of traders and liquid providers. DODO performs about ten times better than AMM.
The Proactive Market Maker responds to changing market conditions and existing liquidity constraints in gross real-time. Also, the PMM allocates funds near the market price, which is the principal reason it overcomes slippage.
Overcoming the problem of impermanent loss: DODO gives liquidity providers the freedom to deposit either or both tokens of the trading pair. The liquidity providers also make choices on combinations of tokens they can deposit. What is interesting is that the trading pair are, in fact, two pools. It is not a 50-50 pool. As a result, if there is no market risk, liquidity providers get the full amount they deposited because DODO leverages price oracles.
Dealing with market risk: Although there is no 100% guarantee of eliminating market risk, the PMM algorithm has a way of solving this. The PMM automatically adjusts the market price in line with changing conditions to encourage arbitrageurs to buy extra tokens, thus keeping the market risk at the lowest point possible.
It is also important to note that PeckShield, a security company, audited DODO’s smart contracts to enhance security and privacy.
The DODO PMM features help both traders and liquidity providers in several ways.
Traders who participate in the DODO platform access liquidity as those trading on a Centralized Exchange (CEX). On the other hand, arbitrageurs maximize their profits as they capitalize on the price differences between the DODO exchange and other existing exchanges. Above this, they can complete all on-chain transactions such as liquidations and auctions while using the DODO platform.
Traders pay a small fee per every trade, which liquidity providers get as a reward for the service they offer. However, this payment is in proportion to the stake liquidity providers contribute to the capital. Unlike other exchanges, DODO has very flexible and user-friendly conditions for liquidity providers. First, there is no minimum deposit requirement. They can deposit the tokens they already have, thereby reducing price risks. Another interesting fact is that liquidity providers get their reward in the form of the token they have provided. For example, if someone provides ETH, he/she gets a reward in the form of ETH.
DODO is the native token for the platform and is an ERC20 token. Its total supply is 1 billion. Platform users earn the token in several ways. Apart from earning the token through bug hunting, token holders mine it through staking and depositing DLP tokens. All traders need to note that the initials trading pair on the DODO exchange is DODO-USDT.
The primary purpose of the DODO token is for governance. Holders of the tokens can participate in governance discussions, tabling proposals, and decision making through voting. Currently, people trade the token is on the DODO exchange, thereby leveraging the Proactive Market maker.
How to join the DODO community.
Do you have any interest in interacting with the DODO community? Here is the good news, you can join it through any of the following channels: