Liquidity Pool Creation
The PMM algorithm is a highly flexible market-making framework that provides liquidity for digital assets, balancing capital efficiency with low usage thresholds.
Depending on the asset class, we have designed separate liquidity solutions for fungible tokens (ERC-20) and non-fungible tokens (ERC-721 and ERC-1155).
DODO allows users to create multiple pools of funds to provide liquidity to ERC-20 assets. This is a completely license-free, non-custodial process where users have the right to configure the various parameters of their pools to create liquidity markets with ideal pricing curves that suit their needs.
These pools fall into two broad categories:
The next section will explain how each of these pools works, showing you visually how DODO provides liquidity to ERC-20 assets.