DODO Crypto: Unlocking Liquidity Efficiency in DeFi

Decentralized finance (DeFi) has become increasingly prominent in recent years with numerous services and products. Part of DeFi's popularity is rooted in its ability to provide greater financial inclusivity and accessibility to individuals worldwide, bypassing traditional intermediaries and enabling direct participation in various economic activities through blockchain technology.

Nonetheless, there are downsides to decentralized finance that have hampered greater adoption. A notable concern is the sometimes precarious lack of liquidity within DeFi platforms, which can lead to higher slippage and the occurrence of impermanent loss. The DODO project has been designed specifically to address these problems and to elevate trading experiences.

Key Takeaways:

• While decentralized finance increases accessibility to various crypto products and services, it’s also known for impermanent loss and high slippage due to lack of liquidity.

• The DODO platform has been purposefully crafted with its proactive market maker algorithm to bolster liquidity and overcome these common issues.

• Besides its PMM algorithm, DODO offers a wealth of services for traders, liquidity providers, project owners and developers, such as a Crowdpooling function and customizable liquidity pool creations.

What Is DODO?

DODO is a cross-chain decentralized exchange (DEX) that runs on 11 chains, including major blockchains like Ethereum, BNB Chain, Arbitrum, Polygon, Optimism and Avalanche. It stands apart from other DEXs with its proactive market maker algorithm. The DODO market-making algorithm allows for greater liquidity and superior price stability than those of typical automated market makers (AMMs) used by most DEXs.

DODO also uses SmartTrade to identify the best swap rate from different liquidity sources to aid users in completing cost-effective trade transactions on the same network.

Another feature of DODO is Crowdpooling. Without bot interference or front running, the Crowdpooling function distributes tokens equitably and spurs liquidity markets. More specifically, Crowdpooling allows new projects to raise funds by joining a whitelist, in which the raised funds will be used to create highly liquid trading pair pools for participating projects. Project owners can also create liquidity mining campaigns to further incentivize their community participants.

What Does DODO Aim to Achieve?

Since most blockchains are inaccessible to each other, DeFi transactions are often complex and slow. Centralized exchanges (CEXs) help execute swift transactions off-chain by using their own protocols, but using third-party intermediaries goes against the fundamental ideology of DeFi. Hence, DEXs aim to improve transactions through cross-bridge protocols and decentralized liquidity pools.

DEXs, however, place users at risk for impermanent loss due to the common lack of liquidity on their platforms. High slippage costs also arise when there aren't enough arbitrageurs to balance liquidity pools effectively. While most DEXs employ automated market maker algorithms to address some of these issues, there remains room for improvement.

DODO is a meta aggregator designed as a superior option for traders, arbitrageurs and market makers. It uses its own liquidity pools as well as those from other DEXs, and its capital-efficient pools reduce the risks of slippage and impermanent loss. This is accomplished through its proactive market maker, which actively adjusts the liquidity pools to accommodate the needs of market makers.

How Does DODO WORK?

The unique structure of the DODO platform benefits market makers, traders and arbitrageurs. DODO employs deep algorithms to assess market sentiment. Generally, market making formulas are linear and overly simplified. The PMM algorithm used by DODO is nonlinear, following a price curve that better aligns with human trading behaviors. It reduces slippage and impermanent loss, leading to a more capital-efficient DEX.

Proactive Market Maker (PMM)

Essentially, DODO's proactive market maker (PMM) improves on-chain liquidity through its flexible, nonlinear algorithm that emulates human market makers in CEXs.

PMM supports more favorable pricing for DODO traders, with up to 10 times the liquidity available through many other AMMs. Moreover, the algorithm is flexible and facilitates optimized transactions on-chain with its dynamic curve adjustments, effectively preventing liquidity providers' assets from being arbitraged. 

Additionally, there’s no minimum deposit, and liquidity providers can contribute using only a single token to earn a lucrative annualized return rate of 20%.

Source: blog.dodoex.io

Altogether, the PMM reduces exposure to risk for liquidity pool providers and has a stabilizing impact for their asset portfolios.

Pool Management Tools

DODO also offers two other permissionless tools for more effective liquidity pool creation and management. The DODO Vending Machine helps smaller project owners create liquidity pools with smooth curves for their assets. Thanks to DODO's flexible PMM model, the price curve can be customized to create the DODO private pool, which offers the added convenience of unilateral deposits and withdrawals from the pool.

Crowdpooling

Initial token offerings on primary markets face liquidity constraints because users can only purchase tokens without the option to sell them. DEXs have sought to address the liquidity issue through bonding curves, automated market making and yield farming. However, these three methods remain susceptible to bot interference and frontrunning. DODO's Crowdpooling eliminates these concerns.

As a liquidity pools solution tailored for primary markets, DODO's Crowdpooling allows all users to support projects by providing liquidity. Optimal security is ensured within the liquidity protection period to prevent participating project teams from enacting rug pulls.

Source: blog.dodoex.io

What Can You Do at DODO?

DODO has been intentionally crafted to benefit both traders and project owners. It gives project owners secure and easy access to the liquidity they need. The platform supports token creation and launches, and it further helps project owners through its innovative Crowdpooling feature. At the same time, DODO users can actively support the projects they’re interested in as liquidity pool providers. Many of the risks and barriers commonly associated with liquidity provision are eliminated on DODO.

DODO For Traders

DODO’s cross-chain platform has an easy-to-use interface that optimizes trading activities. Users can complete limit order, cross-chain swap and swap transactions for token pairs across different blockchains. Furthermore, the platform explicitly identifies the best market price for each trading pair. In addition to trading, users can profit by acting as liquidity providers or liquidity miners.

DODO for Project Owners and Developers

In addition to traders, project owners and developers can take advantage of several specific features on DODO. Customized tokens can be created with functions for incremental issuance, transaction fees and token destruction. In addition, Crowdpooling allows project owners to more easily generate interest in their projects and benefit from the support of liquidity providers. Furthermore, project owners can create liquidity pools with the PMM algorithm, and liquidity mining campaigns to gain extra liquidity for their tokens.

The platform also offers a developer portal with three APIs — Smart Route API, Limit Order API and Web3 Data API. Project owners and developers can also use a trading widget to easily develop a front-end interface for their DApp projects.

What Is the DODO Token?

DODO is the native token of the DODO platform. It comes in both ERC-20 and BEP-20 token standards. As a governance token, you can participate in decision-making for the DODO protocol by holding or staking the token. DODO can also be used for Crowdpooling and IDO allocations, and holding DODO gives you trading fee discounts.

There are two ways to earn DODO tokens. You can stake DODO tokens to earn more DODO, or mine DODO by providing liquidity to any trading pair offered on the platform. 

From DODO tokens, you can also mint vDODO, a membership certificate for loyal token holders, to benefit from trading fee dividends and vDODO membership benefits on top of all the other DODO benefits. In order to mint one vDODO token,100 DODO tokens are required.

DODO’s max supply is capped at one billion tokens. Of these, 16% are distributed to investors, 1% to initial liquidity provision, 60% to community incentives and 8% to partnerships, marketing and operations. The remaining 15% — earmarked for advisors, the core team and potential future hires — will be locked for a year and released linearly over the ensuing two years.

DODO Crypto Price Prediction

As of Aug 29, 2023, the market price of DODO is $0.095, which is over 98% lower than its all-time high price of $8.38 on Feb 20, 2021, and 16.87% higher than its lowest price of $0.081 on Jun 10, 2023.

It can be difficult to accurately predict the future price of any cryptocurrency, due to volatility and the rapid evolution of the market. However, several reputable sources have indicated the probability of a substantial price increase through the decade's end. Specifically, DigitalCoinPrice predicts that DODO’s price may hit $0.34 in 2025 and $0.99 in 2030, while PricePrediction estimates prices of $0.26 in 2025 and $1.73 in 2030.

Is DODO a Good Investment?

The DODO project stands out as an improvement over conventional AMM-based DEXs with benefits for both traders and project owners. It significantly reduces the risks of impermanent loss and slippage for liquidity providers through its dynamic PMM algorithm, and project owners get to maintain their own liquidity pools to raise more liquidity for their tokens.

The current market price of DODO is affordable, enabling even smaller investors to purchase a sizable number of tokens with a modest investment. Several established sources have thoroughly analyzed the project and believe the price will increase significantly by 2030.

With these factors in mind, consider taking a closer look at DODO as an investment opportunity, though it’s always recommended to conduct independent analysis before investing in altcoins, which tend to be volatile.

Where to Buy DODO

You can buy DODO on Bybit as a USDT Perpetual Contract (DODOUSDT). If you’re a first-time Bybit user, you can get started by clicking on the Sign Up button at the top of the homepage.

Closing Thoughts

Unlike traditional market makers, the PMM algorithm employed by DODO supports more favorable pricing for traders, enhanced security and reduced risk for liquidity providers, and easier access to funding for project owners. Beyond its advanced algorithm, DODO introduces Crowdpooling, cutting-edge developer tools and a host of other innovations. With its array of distinctive and sophisticated attributes, DODO significantly elevates the DEX trading experience to new heights.

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