Decentralized finance (DeFi) has transformed the financial ecosystem, opening up new avenues for innovation and expansion. One of the standout projects in this space is DODO, a DeFi protocol that utilizes a proactive market maker (PMM) algorithm to enhance liquidity and reduce slippage. By emulating centralized exchange behavior, DODO’s PMM adjusts buy and sell orders to match market trends more efficiently.
DODO operates as a decentralized exchange (DEX) on both Ethereum and Binance Smart Chain, offering a compelling alternative to automated market maker (AMM) systems. Its SmartTrade feature scans liquidity sources to provide optimal prices for token pair trades. Moreover, DODO allows users to customize elements such as fees, crypto ratios, and liquidity depths. The platform also supports Crowdpooling and Initial DEX Offerings (IDOs), addressing key challenges like frontrunning.
Founded by Radar Bear and Diane Dai, along with an anonymous Chinese development team, DODO has attracted substantial investment. The project initially secured $600,000 in seed funding from Framework Ventures and later raised $5 million from Binance Labs, Pantera Capital, and Three Arrows Capital. It has also garnered backing from major players like Coinbase Ventures, Alameda Research, Galaxy Digital, and CMS Holdings.
DODO's tokenomics show a total supply of 1 billion tokens, with 110.5 million currently in circulation. Token releases are scheduled to continue through April 2025, with 60% allocated for community incentives. The remaining tokens are divided among IDO liquidity, seed sales, operations, marketing, and team/advisors. Despite facing a security breach in March, DODO's token price has stabilized around $1.40 and shows signs of continued growth.
The token hit an all-time high of $8.25 on February 21, 2021. At present, DODO’s market capitalization stands at $180 million, placing it 51st on DefiPulse. With $78.9 million in staked tokens, DODO's total value locked (TVL) continues to rise. DODO tokens can be bought and traded through any crypto wallet with a built-in DEX browser.
In summary, DODO's PMM model provides effective solutions to DeFi’s liquidity and slippage issues. Although the platform has faced security challenges, its strong recovery and growth potential make it a promising asset for a diversified DeFi portfolio. Investors should keep an eye on DODO’s developments and its future growth trajectory.
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