DODO is a decentralized trading platform that uses the innovative Proactive Market Maker (PMM) algorithm to provide efficient on-chain liquidity for Web3 assets, making it easy for everyone to issue and trade these assets. It provides competitive prices for DEX traders and reduces impermanent loss for liquidity providers. In addition, DODO offers a zero barrier-to-entry token issuance mechanic.
DODO offers a variety of DeFi tools, including token trading, liquidity mining, token creation and initial liquidity, custom liquidity pool creation, and more. These tools, both DeFi staples and those created by the DODO Team, implement features that make them unparalleled in safety and efficiency, including the PMM algorithm and liquidity aggregation.
The DODO founders are big fans of Nintendo's Animal Crossing game, and Dodos are a species of villager in the game. We thought they were absolutely adorable, so we named our product DODO.
DODO’s yellow bird mascot is named Maya, and even though Maya doesn't look so much like the dodos of Mauritius and she has a carrot for a mouth, we think she looks cute anyway!
DODO’s supported wallet list is always growing! As of May 1, 2023, the crypto wallets supported on DODO are the following:
Governance on DODO is simple: any holder of vDODO can submit a DODO Improvement Proposal, known as a DIP, for public consideration. After a discussion period, vDODO holders can submit their tokens (1 vDODO = 100 votes) to vote on whether they want to accept or reject the proposal. If accepted, a DIP will be implemented by the DODO Team.
The Proactive Market Maker, also known as the PMM, is DODO’s way of ensuring ample liquidity for its trading pools and other services. The PMM algorithm, a derivation of the popular AMM model, was developed by the DODO Team based on the central limit order books used in traditional finance.
The PMM algorithm works by adjusting the price curve of an asset to ensure that there is ample liquidity at the most up-to-date market price. For example, when the supply of an asset decreases, the PMM algorithm automatically increases the market price for this asset in anticipation of buying back the missing inventory from the market. This ensures that DODO trading pools have much less impermanent loss and improved capital efficiency compared to similar AMM pools.
Crowdpooling, a portmanteau of the phrases "crowdfunding" and "liquidity pool", is a way to distribute tokens and initiate liquid markets that's available to everyone. Inspired by the call auction mechanism common in securities markets, Crowdpooling’s liquidity protection period and equal opportunity investment features ensure that there is no rush of experts or bot interference, like with other liquidity offering methods available today on DEXs.
vDODO is a transferable token that serves as a user's proof of membership in DODO’s loyalty program. It can be used for voting on governance proposals, getting better quotas for Crowdfunding investments, as well as claiming a portion of DODO’s trading fee revenue and exclusive member perks!
DODO monitors various liquidity sources, both those hosted by DODO that use the PMM algorithm, and others across the network. It then uses multiple smart routing algorithms, including those of 1inch, Matcha, and UniSwap, to find the best price out of all of them. This best price is what is quoted to the end user.
The short answer is there is reduced impermanent loss on DODO compared to other decentralized exchanges. Liquidity providers may see their token balances go down short-term, but such losses are less severe than on other AMM platforms, most notably UniSwap.
DODO is a decentralized exchange and on-chain liquidity provider built for long-term success, and our backtests on BTC price data from April 2018 to April 2020 indicate that liquidity providers that stick to DODO are able to make 80% in net gains.
The long answer is that the kind of impermanent loss (we would prefer calling it "asset re-balancing loss", as it is much more accurate and less generic) frequently seen on other AMM platforms is not present on DODO. In one of our earlier Medium articles, we talked about how there is "no [AMM] impermanent loss" on DODO, because DODO does not force liquidity providers to deposit tokens in pre-defined ratios and does not tamper with their asset allocations.
There is, however, market risk involved with liquidity provision on DODO. The biggest distinction between market risk and AMM "impermanent loss" (or asset re-balancing loss) is the fact that impermanent loss is always a loss and there is very little LPs can do to address it, if it is present. In contrast, market risk is not always manifested in losses. LPs could profit if the asset prices went up.
The trading fee revenue are added to the liquidity pool in real-time. When you withdraw your funds, you will also receive your share of the fee revenue.
In most situations, withdrawing your funds from a liquidity pool does not incur a withdrawal fee. However, if the asset allocation in a pool is not balanced, and you are withdrawing the scarcer asset, then the system will charge a withdrawal fee. This fee will be distributed to the other LPs who have provided the scarce asset, in order to incentivize their continued liquidity provision. Usually, this fee is very small, and only when the asset allocation is extremely unbalanced will it become significantly larger.
The formula for calculating the Annual Percentage Yield (APY)a of liquidity provision is (estimated annual trading volume x fee rate x 80%) divided by the total funds in the liquidity pool.
Currently, there is no deposit threshold required to participate in a Crowdpooling campaign, you just need to hold the required token. For example, if the project requires USDT, you can participate by providing USDT at the Crowdpooling price. If too many people participated in the Crowdpooling campaign, the funds will be allocated proportionally based on the amount provided, and any excess funds will be refunded.
After the Crowdpooling period ends, the funds and remaining tokens belong to the project initiator. These assets will be used to provide liquidity in the spot market. During the liquidity protection period, the project initiator cannot withdraw funds from the pool. After the liquidity protection period ends, the funds can be withdrawn. This safety feature was implemented to prevent rug-pull scams where a project initiator would withdraw funds immediately after getting buy-in from others, destroying the value of others' deposits.
No! As long as a trade is completed, you can get a certain proportion of $DODO tokens from the reward pool.
The Annual Percentage Rate (APR) for liquidity mining is calculated as follows: (the reward token's reward per block * estimated total blocks per year * the USD price of the reward token) divided by the total funds in the mining pool.
vDODO is a membership token designed for loyal DODO users. By holding vDODO, you will enjoy the following benefits:
- 1.Trading fee dividends
- 2.vDODO membership perks
- 3.Governance proposal and voting rights
- 4.Increased shares for IDOs and Crowdpooling campaigns on the DODO platform
- 5.Trading fee discounts
6 DODO tokens are released per block and awarded to vDODO holders. The reward is paid in the form of vDODO, credited in real-time and compounded. vDODO holders receive DODO membership rewards in proportion to their holdings. Inviting your friends to mint vDODO will earn you an additional 10% reward.
When minting vDODO for the first time, you must enter an inviter address. The default inviter is the DODO team. You can choose another Ethereum address that has already minted vDODO as the inviter. The inviter cannot be changed once set.
Stake 100 DODO in a DODO liquidity mining contract to mint 1 vDODO.
To redeem your vDODO for DODO, you need to pay a proportional exit fee. This exit fee will be distributed in vDODO form to all remaining vDODO holders in real-time, and is calculated based on the DODO Loyalty Index. The "DODO Loyalty Index" is defined as "vDODO supply * 100" divided by the "circulating supply of DODO ". The higher the loyalty index, the lower the exit fee, as follows:
- When the loyalty index is greater than 0.5, and more than 50% of the circulating DODO is staked, the exit fee reaches the minimum of 5%.
- As the loyalty index decreases, the exit fee gradually increases.
- When the loyalty index is less than 0.1, and less than 10% of the circulating DODO is pledged, the exit fee reaches the maximum of 15%.
The circulating supply of DODO is calculated by subtracting the DODO amounts in the following addresses from the total DODO supply. The DODO Team will update this list in real-time when there are changes to the locked tokens contract.
0x4447183c50e82a8b0141718c405381a3b1bad634 - Incentive tokens
0x3e19d726ed435afd3a42967551426b3a47c0f5b7 - DODO Team, investors, market
0x380312700ed61e4401d27e62508b82d0ae162d9e - Liquidity mining rewards
0x95c4f5b83aa70810d4f142d58e5f7242bd891cb0 - DODO Team multisig
0x0e504d3e053885a82bd1cb5c29cbaae5b3673be4 - Pre-mining rewards
0x8876819535b48b551c9e97ebc07332c7482b4b2d - DODO-USDT pool
0x9224fc9d1389734cebb7cb29545bddc546fb9802 - Seed round lock-up