I don’t know if you have paid attention to the ecological landscape of $ALT . As the leader of the modular RAAS (rollup as a service) track, I have been paying attention to the ecology of this track since the beginning of the year.
Interestingly, $DODO is the subject of issued tokens. In the Launchpool list of its ecosystem, I originally thought that all the projects listed were projects that have not issued tokens.
Coinciding with the Plaza event, I will lay out this project to you from the technical side, project principles and advantages, and the perspective of this new Layer3.
1. Mixed history 🔻
DODO is a relatively old project, and its historical reviews have been mixed. After the launch of this event, I saw mostly negative reviews. In fact, judging from its historical trends, we can also see the big picture from the small.
In fact, many of the targets that experienced the double-top market in the last cycle can be declared shut down in this round, while the old projects that are still active at present are worthy of recognition at least in terms of resilience.
I hold some old coins myself. The market fluctuations this year, especially the one at the beginning of the year, are so despairing. I can show you a trend of my own holdings.
You can make a bold guess as to which one it is, but this is actually still going relatively well, because it is also the star coin of the last round.
But the two double tops in front of the current price are like a mountain pressing down on it, so I understand why many people in the market are criticizing DODO.
2. DODO’s main business🔻
In fact, DODO has also experienced a double-top market, and its performance in this round is undoubtedly relatively healthy due to its relatively small market value. From a personal perspective, I am happy to see these projects that have experienced market cycles and are still finding ways to be active.
Personally, I don’t like DEX very much because this track is highly homogenized and the competition is fierce. Every DEX is trying to occupy a more differentiated ecological niche in the market.
I need to introduce here that DODO, a DEX, is famous for its proactive market maker (PMM) algorithm. This algorithm will actively adjust liquidity through market dynamics. The advantage is that it can more intuitively improve capital efficiency, case by case, and reduce the slippage problem caused by some popular trading pairs due to lack of response.
The principle of this PMM algorithm is to concentrate liquidity near the market price to ensure that sufficient liquidity can still be provided to the market when prices fluctuate.
This design can make DODO's scenario more accommodating to the existence of high-frequency trading, which is why the theme of this event in the square is: #DODO助力Meme发行 , the chain itself is rushing meme, and small market capitalization is prone to high slippage, and this PMM mechanism design can slow down the occurrence of this phenomenon
3. DODO Chain that you may not know about🔻
The fragmentation of market liquidity is a major problem currently facing the industry. There are hundreds of L2s in ETH alone, which essentially leads to the segmentation and complexity of market liquidity.
Just imagine that if an application wants to fully capture the users on the chain, it needs to overcome unprecedented challenges.
I have read many long articles and opinions of DODO in the square, and none of them focused on this thing. I happen to be more concerned about the development of infrastructure, so I would like to talk about it with you.
There are two trends in the development of applications in the current market:
(1) Based on the native ecological expansion on the L1 chain, gradually expand to multiple chains
(2) Transformation from mature applications to application chains
DODO is not the first DEX to build a chain, but it is a relatively advanced chain in terms of direction. It is working on the L3 track. My view on L1, L2 and even L3 is: do not add entities unless necessary.
However, DODO's L3 is based on the concept of China Unicom's L2. I think this is a very suitable entry point in the current market environment.
There are so many L2s on the market that a cross-chain protocol for L2 is even needed to fill this gap. L3 is very interesting and can connect L2+L1. It has strategic value in capturing liquidity.
It is also because of this that I re-examined the L3 track from the perspective of liquidity integration, because there was a target before, which was also L3, but I was not very optimistic about it. It was also a new coin of BN. I won’t mention which one it is. 😂
As I said above: DODOchain is an all-round trading Layer3 supported by the Arbitrum Orbit module based on the ALT Layer. It is positioned as the first Layer3 platform linking BTC Layer2 and ETH Layer2. As I said above, it integrates liquidity from various chains into a unified trading environment.
This means that no matter which chain the user is on, they can easily trade on any chain without being hindered by cross-chain liquidity, breaking the status quo of fragmented liquidity.
Most importantly, DODO Chain's modular design enables it to quickly adapt to new chains and changes in future industry ecosystems. As new infrastructure emerges, DODO Chain can easily integrate new features and support new chains, ensuring that it is always at the forefront of full-chain transactions.
4. Technical aspects of the secondary market 🔻
Finally, I will expand my thoughts from the perspective of the secondary market technology:
-First, the hourly K-line level🔻
Currently, DODO has broken away from the triangle relay structure and has shown signs of a pullback. Subjectively, we initially judge that this may become a small breakthrough. The next focus is whether it will really break through the pattern.
If it is supported at the upper edge of 0.1444, then this wave of trend will continue to rise and you can continue to hold
But if it falls below 0.1444 and returns to the pattern, we will still use the relay logic to make a breakthrough operation, ignoring the objective fact that there was a false breakthrough before. If it breaks the lower edge, we will go short, and if it breaks the upper edge, we will go long.
-The second is the daily K-line level🔻
The current daily K-line is facing a temporary support after the end of the trend at the beginning of the year, which is the position shown in the above picture. Now it has become resistance. The recent form of the daily K-line is a bit not good because of this. There are too many upper shadow lines, and it is difficult to guarantee that this resistance can be broken through.
Because I combined the volume and energy to see that the daily K-line trading volume is gradually decreasing, I suggest to wait and see for the time being, and take profit conservatively. It will not be too late to re-enter the short-term market after the current key position is broken.
The above is an introduction to DODO from the perspective of algorithms, infrastructure, and technology. Thank you for reading.
#dodoairdrop #BinanceLaunchpoolHMSTR #BTCReboundsAfterFOMC #NeiroOnBinance #FTXSolanaRedemption
1. Technical aspects
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