WTF is DODO?
Decentralized exchange platforms clearly represent the financial capability of the future. The problem is, it's taking too long to get there. Current exchange platforms tend to have low trading volumes and the actual act of trading is locked behind complex systems and confusing UX designs. These setbacks result in limited liquidity that ultimately drives investors right back to the traditional centralized trading platforms of the past.
But we're ready for the future. Today.
To get there, we need a decentralized exchange that is capable of overcoming these common pitfalls. It needs to be fast, easy to use, feature a user-friendly design, and have access to the liquidity necessary to really make a difference. Dodo may very well be that exchange we've been waiting for.
Dodo is a decentralized exchange and liquidity provider that is changing the way traders participate in an active market. It's a revolutionary exchange platform that operates on Binance and Ethereum blockchain networks. It has all of the expected advantages of a decentralized financial system with far fewer of the unfortunate disadvantages. One of the main ways that it accomplishes this is by breaking away from the automated market-making(AMM) standard and introducing a new proactive market-maker (PMM) system.
AMMs were designed to utilize a common liquidity pool to ensure that traders had 24/7 access to the liquidity needed to make investments. The people who use the AMM supply the liquidity in the form of specific crypto tokens and their ultimate value was determined using a specific mathematical formula. It was a step up from the traditional buyer's and seller's market used by centralized exchange platforms, but it still had its problems. Namely, it would commonly succumb to slippage and impermanent loss.
AMMs work to spread the available funds evenly through a price range. But this means that only the funds closely connected to the current market price would ever be fully utilized. So while there may be ample liquidity provided to the pools only a small fraction of that liquidity would ever actually be in use.
Dodo overcomes these obstacles with their PMM formula and thus allows for a better ratio of asset trading against the price curve. It also results in far less slippage and no noticeable impermanent losses. It accomplishes much of this by adjusting the formula used to determine the asset's price.
Dodo changes the formula to create a more proactive movement, hence the name. The formula constantly adjusts in reaction to market price changes. The formula shifts the price curve in the same direction of the market price. The bottom line is that it allows for more consistent liquidity available to traders.
Another way that Dodo differs from many of the decentralized exchange platforms we see today is by doing away with the need for linkage between the base traded token and the quote token. This means that liquidity providers are able to invest with only a single type of token. They're free to use whatever they have available and there are no additional requirements. No other exchange platform makes it that easy to get involved. The use of only a single token also results in somewhat less risk involved with every trade.
What Makes Dodo Exciting?
Dodo is about more than just smart ideas and powerful theorizing. They have managed to put their ideas into action with software tools and features that are changing the way we see decentralized finance. Dodo aims to be the best decentralized exchange platform on the market and they are clearly on their way to achieving that goal. Here are some of the exciting ways they are accomplishing this.
The initial offering of tokens faces one major hurdle: the first traders are only able to buy tokens and are not able to sell them. This is severely detrimental to the starting growth of liquidity for any exchange platform. Many platforms have tried different approaches to solving this problem. AMM systems and yield farming strategies are both common, but they aren't perfect. Crowdpooling is the Dodo solution.
Crowdpooling combines concepts of liquidity pools and crowdfunding. Token issuers provide the initial assets and comparatively low prices, which provides a large liquidity pool for early investors. It's a simple strategy that is able to avoid the problems of bot interference and frontrunning tactics. It also ensures there is a period of liquidity protection, which savvy investors can fully utilize to invest in the projects they really enjoy.
SmartTrade is a platform designed to help traders get the best possible values for their tokens. It allows for the trading of arbitrary tokens at prices they might have trouble locating otherwise. It takes advantage of the 1inch and 0x APIs to build a unique routing system unlike anything else on the market. Traders can easily find values for the more than 100 supported tokens or input their own custom tokens.
The Dodo vending machine applies some of the same principles that make their PMM such a powerful tool. It allows for the creation of bonding curves that project managers can use to design bonding curves for their community-driven projects. This allows the projects to move forward with single-sided liquidity and without the need to force seed their initial quote assets. When compared to similar options that are used to bootstrap liquidity, the Dodo vending machine provides far more stability and less slippage.
Dodo has even managed to take mining in an exciting new direction with their Combiner Harvesting program. This program works in unison with ongoing projects that have decided to work alongside Dodo. Those projects can create liquidity pools that are used on Dodo. By providing liquidity, those people will receive dodo reward tokens in return. These membership tokens provide the holders with several neat features, including a portion of ongoing trading fees.
Who Is On The DoDo Team?
It seems that every exceptional DeFi product is created by a team with experience in both traditional and decentralized finance. Dodo is no exception to this rule. The founding team behind the Dodo programs have an extensive history in the industry and are well-known experts in the DeFi community in China.
1. Mingda Lei: A co-founder of Dodo and the architect responsible for designing the breakthrough PMM formula. Mingda spent time studying Physics at Peking University where he dropped out while pursuing his Ph.D. We're glad that he decided to give up physics and move to the exciting field of decentralized finance. He spent his early years working on a major DeFi project in China known as DDEX. His experience with DDEX provided him with a better understanding of margin trading and its role in decentralized finance.
2. Qi Wang: Another student of Peking University and Dodo co-founder. Qi Wang also attended the Beijing University of Post and Telecommunications before getting his Master's degree in computer engineering at Carnegie Mellon University. Qi Wang started his career working as a technology consultant intern at Dell MC in Beijing and later became a lead software developer for Oracle in San Francisco. His first major position in cryptocurrency was at DLINK Technology and in 2020 he became the COO of Dodo.
3. Diane Dai: The final co-founder of the DoDo platform got her start in DEX in 2017 with DDEX, the same company where co-founder Mingda Lei worked. Later, in 2019, she founded DeFi Labs. This was one of the first major DeFi communities in China. It was the first subscription-based community hosted on WeChat and it became a big deal in a very short period of time.
These three co-founders came together in 2020 to found Dodo. The goal was to create a decentralized exchange platform that was different and better than anything else currently on the market. They have been changing the way that we experience decentralized finance ever since.
Who Are The VCs that funded Dodo?
Dodo was made possible with investments from well-known VCs around the globe. A few of the biggest names on the list include:
How To Participate In The Dodo Network?
Dodo tokens went live in 2020 and there are currently a few different ways to participate in their network. The three main options include:
- Dodo exchange platform
- Dodo liquidity mining
- Dodo crowdpooling
Which of these three options is right for you depends entirely on what you hope to accomplish. You can view all three of them by visiting the Dodo website. And unlike many other platforms, you can participate using only a single currency token. All that you need to do is visit their site and connect your wallet to begin participating.
Where To Go To Learn More?
The best place to learn more on the official Dodo website. There, you can find links to social media profiles of various team members as well as helpful documents. The Dodo GitHub page is also packed with helpful information on their latest projects and plans for the future.