A virtual asset is a representation of value that exists on the blockchain. These assets can be constituted in a variety of forms, which include, by way of example, the following three types of assets on Ethereum: ERC-20, ERC-721, and ERC-1155 assets. All three types of Ethereum assets are supported on DODO.
A buyout (or outright purchase) is a business practice that generally refers to the purchase of someone else's labor or labor products in the form of currency. A buyout also grants the buyer exclusive rights, ownership, or operational control for a specific period or within a certain geographical area. These exclusive rights, ownership, or operational control provide the buyer with greater predictability in generating profits or benefits.
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.
Decentralized finance is a type of blockchain-based finance that does not rely on financial institutions such as brokerages, exchanges or banks to provide financial instruments, but instead uses smart contracts on the blockchain to conduct financial activities.
A DEX, short for Decentralized Exchange, is a blockchain-based exchange that does not store user funds and personal data on servers, but simply serves as a platform to match buyers and sellers who wish to buy and sell digital assets.
A DIP, short for DODO Improvement Proposal, is a proposed change to the DODO protocol. DIPs can be submitted by DODO users that hold vDODO tokens, and all other vDODO holders vote on whether to accept or reject the proposal. If a DIP is accepted, the DODO Team will implement its terms.
A flash loan is a lending tool that completes borrowing and repayment actions based on a single block. With a flash loan, you can make payments on DODO with credit. If you use a flash loan, it means that when you purchase tokens, you can first receive the tokens and then pay for them later.
An IDO, short for Initial Digital asset Offering, is the launch of a digital asset to obtain users and initial liquidity for that asset. On DODO, IDOs are conducted using the Crowdpooling model, under which they are known as Crowdpooling campaigns.
Liquidity describes how quickly and seamlessly an asset can be exchanged for another when both are present in a pool of assets. If this process is fast and the price of one asset is minimally affected by the trade, then the pool can be said to have ample liquidity. If the trade takes a long time to fill or causes a severe adjustment of the asset conversion rate, then the liquidity is low. Generally speaking, the more assets there are in a pool, the more liquidity there is.
A liquidity pool is a collection of assets, usually a token pair, that facilitates exchanges between the assets in the pool for users on DEXs. A user that submits an order to sell one token in exchange for another, would have the DEX automatically deposit their first tokens into the pool and send the second token to their wallet. Liquidity pools benefit from high liquidity.
DODO supports the following four types of liquidity pools: Standard Pools, Pegged Pools, Single-Token Pools, and Market Maker Pools.
A liquidity provider is someone who deposits assets into a liquidity pool to ensure that the pool has sufficient liquidity. Liquidity providers are compensated for their services by receiving a portion of the trading fees from the liquidity pool.
Liquidity mining is a process by which cryptocurrency holders lend their assets to decentralized transactions in return for rewards.
A Market Maker is a person or institution with enough assets to be able to influence the price of an asset by conducting high volume trades.
The DODO Market Maker Pool is a product that is geared towards professional market makers. It differs from the other liquidity pool models available on DODO in that only the pool creator can supply liquidity to the pool, and the Market Maker Pool's parameters can be adjusted by the pool creator at any time after the pool is created.
Pegged Pools are liquidity pools that are optimized for synthetic assets, a large class of assets that anchor their price to a certain target, such as USDT, USDC, WBTC, and RENBTC. A DODO Pegged Pool defines a curve that concentrates liquidity at the anchored price, which fits the synthetic asset market pattern, and therefore provides very good liquidity.
Private Swap is a special feature that can effectively protect users from sandwich attacks. These attacks could come about due to the differences between the slippage settings and the current price in the liquidity pool.
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.
A Single-Token Pool is a unique type of liquidity pool on DODO that allows LPs to deposit only one token of a token pair, or to supply both tokens of a pair with an unequal proportion. This pool is unlike other liquidity pools, which require LPs to provide both tokens of a pair in a 1:1 ratio.
Slippage is the difference between the price of a trade when it was submitted, as compared to the price of the trade as it was actually executed.
The slippage tolerance refers to the maximum percentage by which the market price can deviate from the expected price before the transaction is considered invalid. The smaller the slippage tolerance, the more funds are gathered near the market price, and the deeper the market depth, but the higher the risk for liquidity providers. The larger the slippage tolerance, the further the funds are from the market price, and the shallower the market depth, but the lower the risk for liquidity providers.
Staking is the act of locking up assets for a predetermined period of time, in exchange for rewards.
The Standard Pool model offers a classic market making strategy, allowing users to participate without any expertise in the market. The price curve pattern of the Standard Pool is controlled by an external oracle, allowing liquidity to always be concentrated around the market price.
In the context of a Crowdpooling campaign, a token cap is the maximum amount of funds that the project initiator wishes to raise. The token price will stop increasing once the token cap is reached.
A pair of cryptocurrency tokens that are deposited in a liquidity pool, allowing them to be exchanged for one another.
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!