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# Public Pool

## What is an Public Pool ？

Many project owners face a dilemma when using AMMs to provide liquidity.
• You must have project side tokens to provide liquidity
• Buying project-side tokens requires good liquidity
To solve this cold start problem, project owners must rely on a complex issuance process. Whether it's an auction, liquidity mining, or providing initial liquidity themselves, it takes up a lot of the project owner's energy and increases the barrier to user participation.
So DODO is thinking that it is possible to come up with a unilateral initial liquidity solution to make the whole process simple, and DODO calls this mechanism the DODO Vending Machine model. Let's see how a vending machine works.

### DODO's Vending Machine Model

This is a vending machine that allows you to return goods. You can buy goods from the vending machine, and of course, the more you buy, the more expensive the goods are. But the money you pay for the goods is stored inside, and when you don't want the goods, you can return them at the current price.
The price curve of a vending machine is defined by the PMM algorithm as a price curve with a minimum price, which is the price of the first item sold by the vending machine.
Anyone can set up a vending machine and set the variety of goods it contains. You can set it up with mainstream assets like BTC, ETH or new assets that you issue yourself.
You don't need to provide any denominated assets at first, just fill the vending machine with goods. This design allows you to create ample liquidity for your tokens at DODO, without spending a dime, in just 5 minutes.

If a vending machine is set to
$k=1$
,
$i$
is a very small number, then it behaves almost the same as AMM. You can think of this as an AMM price curve that truncates the parts that are smaller than
$i$
, the smaller
$i$
is, the closer it is to the full AMM curve. Usually set
$i=0.000001$
.

### Anyone can participate

Anyone can recharge the vending machine with two assets to participate in the liquidity supply, just like you do in the AMM, except that the value of the two assets is not necessarily 1:1 at the time of recharge.
Anyone can participate in adding liquidity, which is public.

## Explore more possibilities

### Case 1: Build initial liquidity at low cost to support high volume markets

You are a developer and want to build a community project. Then you can issue 10 million tokens, of which 1%, or 100,000, are for you.
9.9 million are open to the community. If you want to build a marketplace for this in AMM, you need another $9.9 million to buy it, which is obviously unrealistic. However, you can choose to set up a DODO Vending Machine with 9.9 million tokens at a starting price of$1, and set up a bonding curve. if a community member is bullish on your project and is willing to buy 100,000 tokens, his average price is only 1.005!

### Case 2: Flexible buying (setting) liquidity

For example, an algorithmic stablecoin project, below $1, needs to raise liquidity as soon as possible to take on the death spiral. If you can catch it at$0.9, it will greatly strengthen market confidence, while if you catch it at \$0.5, it may have led to an irreversible death spiral (meaning that most of the buying in AMM is meaningless to you). So here's what you can do. Suppose your token is called X. Create a DAI-X pool, set the initial price to 1, and
$k=0.01$
.
By setting a reward for the LP token in this pool, you can raise buying support that gathers around 1. Funding is much more efficient than traditional AMM, and you can raise funds at key support points with rewards even if it is not an algorithmic stablecoin project.