Introducing the DODO Stable Pool (DSP)

The DODO Stable Pool (DSP) is an innovative solution crafted to enhance the experience of liquidity providers (LPs) in the realm of stablecoin exchanges. While DODO V1 has demonstrated strong performance in stablecoin swaps, certain aspects, such as deposit rewards and exit penalties, have been perceived as overly complex for some LPs. These LPs often prefer a more straightforward approach, particularly the dual-token deposit and withdrawal system.

To address this preference and simplify the process, the DSP has been designed to operate on a two-token entry and exit model. This approach allows LPs to deposit and withdraw two different types of tokens, aligning with the traditional mechanisms they are accustomed to. The DSP pool caters to the needs of these LPs by offering a user-friendly and familiar liquidity provision experience, all while maintaining the efficiency and reliability expected from the DODO platform.

Best choice for synthetic assets#

DSPs are also suitable for synthetic assets, which encompass a wide range of assets that maintain their price by linking it to a specific target through various mechanisms. Examples include USDT, USDC, BUSD, and DAI, all of which are anchored to USD; WBTC is anchored to Bitcoin, while stETH is anchored to ETH. The exchange rates between these similarly anchored coins remain highly stable and typically hover around 1:1. A DSP establishes a curve that concentrates liquidity at the anchored price, aligning with the pattern observed in the synthetic asset market and thereby providing abundant liquidity.

If your project issues its own USD stablecoin or any other synthetic asset (such as sBTC), you can utilize a DSP to enhance its liquidity. Compared to a regular AMM pool, this curve enables your stablecoin to gain 10x or even 100x more liquidity with the same Total Value Locked (TVL).

Through the DSP, DODO continues to evolve and adapt, ensuring it meets the diverse needs of its user base in the dynamic DeFi landscape.