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 order to maintain the price curve, the Standard Pool needs to frequently change the mid price, which is currently maintained by Chainlink. It is understood that each time Chainlink changes its price, the Standard Pool resets the price curve.
In addition to the guide price
, there are two other parameters controlled by DODO. These are the slippage factor
and the commission rate
, which can be modified by DODO's multisig admin wallet. In the future, DODO will transfer all control of the Standard Pool's parameters to a DAO, so that market-making strategies will be managed by the community.