{"id":1673,"date":"2021-08-05T14:40:09","date_gmt":"2021-08-05T14:40:09","guid":{"rendered":"https:\/\/deficoins.io\/?page_id=1673"},"modified":"2021-08-05T14:40:09","modified_gmt":"2021-08-05T14:40:09","slug":"dodo-review","status":"publish","type":"page","link":"https:\/\/deficoins.io\/review\/dodo","title":{"rendered":"DODO Review: Everything About DODO Explained In This Comprehensive Guide"},"content":{"rendered":"
As the adoption of cryptocurrency into different mainstreams is increasing, more crypto decentralized protocols are springing out. Moreover, the decentralized finance<\/a> boasts of several exchanges and protocols due to the peculiarity in their operations.<\/p>\n The decentralized exchanges (DEXs) require no third-party authorization and control of users\u2019 transactions. They have a global cover of services that minimizes the issues of network downtimes. Also, the DEXs operate on a no disclosure basis for their users’ personal information. Thus, you can open an account and start trading right away.<\/p>\n Among DEXs. Uniswap has been a protocol that runs on automated market makers to provide its services. Through its operations, some challenges are left unsolved.<\/p>\n Then, we have the emergence of the DODO protocol. This new DEX proves to be a better competitor to Uniswap through proactive market makers (PMM). The PMM offers enough liquidity through real-time market prices for digital assets.<\/p>\n In this DODO review, we’ll highlight everything about the exchange and its governing token, DODO. Also, we will reveal the features of the protocol and its benefits as a decentralized exchange.<\/p>\n Contents<\/p> DODO is a DeFi protocol that provides on-chain liquidity at a stable price through a proactive market maker (PMM) algorithm.<\/p>\n The PMM algorithm offers a better liquidity pool at a stable price, unlike automated market makers (AMM). This is because the mechanism of PMM pricing imitates human pricing and operates through oracles \u2013 the link between real-time data and blockchains.<\/p>\n DODO protocol runs on the Ethereum network and proves to be the solution for continuous on-chain liquidity providers. The DEX contract-fillable liquidity is comparable and similar to centralized exchanges (CEXs). Also, the price stability of the DEX is linked to the real-time market prices for the assets.<\/p>\n In comparison to AMM functions, through PMM, DODO exchange offers a better solution to some shortfalls. The DEX uses the real market prices for assets to give enough liquidity to maintain the liquidity providers’ portfolios. Furthermore, DODO reduces price slippage and eliminates impermanent loss through rewards of arbitrage trading.<\/p>\n The DODO exchange was launched in August 2020. The founders of the DEX are three professionals in blockchain technology – Mingda Lei, Diane Dai, and Qi Wang.<\/p>\n Mingda Lei is a co-founder and CEO of DODO. He drew the PMM model used for the protocol. Previously, he was a core developer at a margin trading platform, the DDEX.<\/p>\n Diane Dai is a co-founder and the Chief Marketing Officer at DODO. She actively runs several channels on WeChat, such as the \u2018DeFi Labs\u2019 channel.<\/p>\n Qi Wang is the next co-founder and COO at DODO. As a software developer, he is the founder of DOS Network. This\u2019s a layer 2 oracle service in China. Also, he worked in Oracle and Pure Storage before moving over to the crypto industry.<\/p>\n DODO utilizes its PMM algorithm to reduce price slippage and provides very low transaction fees. Users on the platform get their order execution comparably to centralized exchanges. Just like other DEXs, the DODO ecosystem still maintains liquidity providers and arbitrageurs as key players. However, the protocol completely removes impermanent loss risk factors.<\/p>\n DODO replaces the functionality of AMM seen in other DEXs with its unique PMM. The use of the PMM algorithm help to flatten the price curve in the liquidity market.<\/p>\n In its functionality, the PMM offers enough liquidity by gathering funds near market prices.<\/p>\n The new equation of\u00a0 DODO PMM algorithm works is ( To indicate the market price of a digital asset, R is the risk factor, and P is the market price on DODO)<\/p>\n From the set algorithm, the protocol is built with a direct relationship between market price and that on the platform. Once there\u2019s a drop in the market price, the protocol automatically makes its adjustments. This helps the DEX to attract arbitrage for maintaining the stability of the portfolios of the liquidity providers.<\/p>\n DODO can ensure the following through its PPM algorithm:<\/p>\n Through its partnership with Chainlink in August 2020, DODO utilizes the price feeds from Chainlink\u2019s oracles. The real-time market prices enable the algorithm to prevent huge differences in its price and that of the assets in the actual market.<\/p>\n You must bear in mind that as liquidity increases, the associated risk decreases. So the accumulation of a liquidity pool will invariably change the \u2018R\u2019 factor downward.<\/p>\n Since the Chainlink price data is the baseline for DODO\u2019s exchange prices, there could be a weakness with such relational trust.<\/p>\n This implies that a potential failure or compromise in Chainkink\u2019s nodes will translate incorrect information to the DODO platform. Consequently, the market prices based on incorrect data could result in significant losses in the DODO ecosystem for liquidity providers.<\/p>\n Besides the basic features of staking, trading, and pooling, DODO has 3 other unique features, as given below.<\/p>\n With the protocol’s vending machine, anyone with a wallet can create a liquidity market. Through the use of PMM technology, it’s easy for users to develop a bonding curve for their provisioned tokens. When you define your desired pricing curve, the DODO Vending Machine follows the curve to develop a suitable liquidity market for the token. While making it accessible to the public, the protocol still maintains the decentralized and non-custodial characteristics of the assets.<\/p>\n The uniqueness of this feature is that there\u2019s no restriction on who can use it. The feature is open to every user with a wallet, and there is no censorship or platform interference.<\/p>\n Though similar to the Vending Machine, this feature has options for advanced investors. In addition, the Private Pool offers more satisfaction for professional market makers that need more even with the Vending Machine.<\/p>\n The Private Pool offers the following to users:<\/p>\n The Private Pool helps users to become personal market makers as they use the configuration options. You have several possibilities for strategizing your trading patterns using the available parameters. The protocol provides its users the freedom to create and manage their self-made liquidity pools on-chain.<\/p>\n The DODO NFT Vault is a price invented and liquidity project for non-standard cryptocurrencies. Users can either create new or use their existing NFTs to pledge in the NFT Vault. Also, there are the options of either keeping the NFTs unique or fractionalizing them. Selecting the latter option divides the NFTs into several bits. As such, fungible tokens can be issued to represent them.<\/p>\n Using the Vault requires a corresponding liquidity pool for the NFT. This will help to set up the required flexibility and efficiency in the market for trading the NFTs bits. The whole operation is powered by the protocol\u2019s PMM algorithm.<\/p>\n The birth of the DODO protocol brought solutions to the challenges in the decentralized finance that the exchanges based on AMM can\u2019t offer. Both users, investors, and other Defi apps have got their quota of benefits from the impact of the DODO exchange.<\/p>\n Here are some of the benefits of DODO exchange<\/p>\n The DODO has its native token, the DODO coins, which is the protocol’s governing token. It’s an ERC-20 token as the protocol runs on the Ethereum blockchain.<\/p>\n The token has a total maximum supply limit of 1 billion DODO. The current circulating number of tokens is over 100 million.<\/p>\nWhat is DODO?<\/strong><\/span><\/h2>\n
History of DODO<\/strong><\/span><\/h2>\n
How Does DODO Work<\/strong><\/span><\/h2>\n
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DODO Core Features<\/strong><\/span><\/h2>\n
The Vending Machine<\/strong><\/span><\/h3>\n
Private Pool<\/strong><\/span><\/h3>\n
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NFT Vault<\/strong><\/span><\/h3>\n
Benefits of DODO Protocol<\/strong><\/span><\/h2>\n
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The DODO Token<\/strong><\/span><\/h2>\n