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 homogenous tokens (ERC20) and non-homogenous tokens (ERC721 and ERC1155).
DODO allows users to create multiple pools of funds to provide liquidity to ERC20 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 ERC20 assets.