DODO is a decentralized change that works within the Ethereum blockchain and makes use of the algorithm of the Proactive Market Maker (PMM) to supply customers with tokens that they’ll use to earn transaction charges.
In response to DeFi Pulse knowledge, DODO’s native token DODO now ranks 37th with a complete worth of $ 59.1 million decentralized financing (DeFi) market. It is solely been listed for 2 months and is a comparatively new venture within the crypto area.
A few of the decentralized exchanges identified to us, resembling Uniswap, use algorithms resembling Automated Market Maker (AMM), which permit traders to deposit funds into the on-chain liquidity pool prematurely in a completely decentralized method and with no custodian. On the identical time, seamless transactions between cryptocurrencies are offered.
Nevertheless, conventional AMM has the weaknesses of inconsistent loss, poor capital effectivity, inadequate liquidity utilization, and threat with a number of tokens.
To unravel the above issues, DODO created this Proactive market maker (PMM) algorithm that goals to generalize the order guide matching system.
Excessive capital utilization
PMM adjusts the worth curve utilizing a worth prediction system in order that extra of the liquidity is targeted in the marketplace worth of property. This allows extra energetic and frequent transactions, thereby bettering capital effectivity and decreasing unstable losses. As proven under, the DODO curve is flatter than the Uniswap curve close to the market worth, indicating increased capital utilization and fewer slippage.
On the identical time, MarketM permits market makers to deposit solely unilateral property of a selected buying and selling pair, in order that merchants do not need to bear any bilateral dangers.
Low transaction prices
The DODO mainnet integrates the Chainlink Oracle, which supplies worth updates by aggregating responses from twenty-one totally different worth feeds and assigning liquidity suppliers moderately lower-cost transaction charges.
DODO has obtained approval from lots of the world’s main funding establishments, together with Three Arrows Capital, Binance Labs, Coinbase Capital, and Alameda Analysis, to call just a few. Dodo is at present listed on the Binance and FTX exchanges.
Picture supply: Shutterstock