Liquidity Provider

Market making(Becoming Liquidity Provider) is one of the ways to earn in DODO, you can choose a pool to fill based on the assets you hold, or based on the data performance of each pool to earn trading fees.

How to participate in market making to earn coins?

1. Choose a Liquidity Pool

Click on the “ADD LIQUIDITY” button under the “Earn” tab.
There are two ways to find the pool you wish to add liquidity to:
(a) Search By Tokens
There could be multiple liquidity pools for the same trading pair. Pick the pool that fits your needs based on its TVL and APY.
  • If the name of a liquidity pool is displayed as (for example) “BUSD USDT”, this means that the pool supports both single and double-sided liquidity provision.
  • If the name of a liquidity pool is displayed as “BUSD + USDT”, this means that the pool supports double-sided liquidity provision only, in which liquidity providers are required to deposit an equal amount of BUSD and USDT into the pool.
(b) Search by Address
Once you have selected a pool, click on the “+” button to the right to add tokens to that pool.

2. Set the Slippage Tolerance

Before depositing your funds, you can set your slippage tolerance by clicking on the gear button at the bottom right of the “Add Liquidity” dialog.
When the difference between the market price and the quoted price from DODO’s liquidity sources for tokens for which you would like to provide liquidity exceeds your slippage tolerance, the trade will fail.
The default slippage tolerance is 3%. You are free to customize this percentage or choose the Auto mode by clicking “AUTO”. The Auto mode automatically adjusts the slippage tolerance based on the liquidity of different trading pairs:
  • Slippage tolerance is set at 0.5% for mainstream trading pairs like BTC-USDT, WBTC-USDT, ETH-USDC, WETH-USDC, BNB-USDT, and WBCB-USDT.
  • Slippage tolerance is set at 0.1% for stablecoin trading pairs, including USDT, USDC, DAI, and BUSD.
  • Slippage tolerance is set at 3% for every other trading pair.

3. Authorization and Adding Funds

  • Before confirming your fund deposit, make sure to double-check whether the pool supports single-sided or only double-sided provision.
  • After clicking “Add”, confirm the transaction in your wallet to complete the deposit.
  • Note: When depositing a token in a DODO liquidity pool for the first time, you need to give DODO permission to access that token in your wallet by clicking “Approve” in your wallet app.

4. How to View Your Liquidity

After successfully adding liquidity on DODO, you can view your liquidity positions by going to “Liquidity” -> “Your Liquidity”.

5. Withdraw Your Liquidity

You are free to withdraw your liquidity whenever you want.

6. Risk Disclaimer

Liquidity provision is not risk-free, and there is always a possibility of loss. Please be careful when adding liquidity and make sure you understand the risks.