DODO is a decentralized finance (DeFi) protocol that provides decentralized exchanges (DEX) and liquidity services. It is built on multiple blockchain platforms, including Ethereum and Binance Smart Chain (BSC). Unlike traditional automated market makers (AMMs) such as Uniswap, DODO uses a unique algorithm called the proactive market maker (PMM) model. The model is designed to provide traders with better liquidity and reduce slippage while maintaining efficient capital utilization for liquidity providers.
Here are some key points about DODO:
Proactive Market Makers (PMMs): PMM algorithms adjust asset prices based on market conditions, making them more capital efficient and reducing the liquidity required to maintain tight spreads.
Crowdfunding: DODO offers a feature called “Crowdfunding”, a fair token distribution mechanism where users can participate in liquidity pool launches without having to worry about front-running or bots.
Single Token Offering: Unlike traditional AMMs where liquidity providers need to provide two different assets in equal proportions, DODO allows users to provide liquidity using only a single token, thereby reducing the complexity of liquidity provision.
Gas Efficiency: The PMM model also optimizes gas costs, making transactions and liquidity provision more cost-effective.
DODO also provides various services such as token minting, asset exchange and staking. It has attracted attention for its innovative approach to solving liquidity problems and its flexibility for token issuers.
