![]() The total supply of the DODO token is 1 billion (1,000,000,000). Please be aware that DeFi protocols are innovative and high-risk projects and therefore vulnerable to coding bugs and security issues that could be exploited by hackers and result in the loss of funds. Its audit report on DODO can be accessed here. DODO’s smart contracts were audited by PeckShield, a blockchain security company, on July 10, 2020. ![]() LPs can obtain liquidity by depositing the tokens they already own, without taking on price riskĭODO is a decentralized protocol and therefore resistant to centralized network attacks relying on a single point of failure.LPs can create trading pairs with their own tokens. ![]() DODO charges a fee for each transaction and eventually distributes it to LPs as rewards.There are no minimum deposit requirements and restrictions on asset types.Smart contracts can natively use DODO liquidity to complete on-chain transactions, such as liquidation and auctions.Arbitrageurs can profit from price discrepancies between DODO and other exchanges.Each and every trader enjoys sufficient liquidity similar to that of centralized exchanges.In order to minimize counterparty risks for LPs, DODO dynamically adjusts market prices to encourage arbitrageurs to step in and stabilize LPs’ portfolios. It gathers funds near market prices to provide sufficient liquidity. How does DODO workĭODO accepts liquidity providers’ assets. Liquidity is improved by depositing more quote tokens. To start an IDO, a project needs to only set the oracle price to a constant. Unlike AMM protocols, DODO does not require quote tokens, and IDO projects only need to deposit their own tokens to the liquidity pool, after which the PMM creates its own ask-side depth. LPs can create their own trading pairs, deposit their own tokens to negate price risk, and also collect a portion of DODO transaction fees as rewards.ĭODO also attracts new crypto projects with a free listing as an Initial DODO Offering (IDO). Liquidity providers are not required to make a minimum deposit and are not restricted on the type of asset they provide. This ensures more favorable pricing, higher fund utilization, and decreased price slippage, single risk exposure, and no impermanent loss (explained here).įor traders, DODO offers sufficient liquidity comparable to that of centralized exchanges (CEX), which can be natively used by smart contracts for on-chain transactions such as liquidation and auctions.Īrbitrageurs can also take advantage of price differences between DODO and other exchanges. DODO automatically adjusts market prices in order to attract arbitrage that will help keep liquidity provider portfolios stable. The PMM collects funds near market prices to establish enough liquidity, which drops quickly the further the price moves from the market price. The team claims their PMM algorithm provides superior pricing over that of AMM competitor Uniswap due to a flatter price curve. DODO Exchange ReviewĭODO positions itself as one of the most competitive liquidity providers that offer very low transaction fees and price slippage through its PMM algorithm, first conceived in April 2020. Traders get lower slippage with PMM than AMMs. What is PMM?ĭeveloped by the DODO team, Proactive Market Maker (PMM) is an oracle-aided algorithm with an advanced pricing formula that provides contract-fillable liquidity. 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 a reward.ĭODO also caters to new crypto projects with a free ICO listing through its Initial DODO Offering (IDO) which requires issuers to only deposit their own tokens.ĭODO’s smart contract operates as an ERC20 token on the Ethereum network. The PMM pricing mechanism, which mimics human trading, utilizes oracles to gather highly accurate market prices for assets. DODO is a Chinese decentralized finance (DeFi) protocol and on-chain liquidity provider whose unique proactive market maker (PMM) algorithm aims to offer better liquidity and price stability than automated market makers (AMM).
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