DODO is a project that aims to solve decentralized exchange limitations through a proactive market maker (PMM) - a unique solution that offers an alternative to automated market maker (AMM) technology.
What Is DODO?
DODO fulfills the same role as Ethereumâs biggest decentralized exchange â the Uniswap exchange. However, DODO is not only a decentralized exchange (DEX) hosted on Ethereum, but also on Binance Smart Chain. Furthermore, it has a new approach to making a DEX run efficiently. While Uniswap relies on automated market makers (AMMs), DODO introduces innovation in the form of a proactive market maker (PMM) algorithm.
PMM is the main distinguishing factor that most say will define DODO as a crypto project. Letâs break down the difference between AMM and PMM to understand what DODO brings to the DeFi table. As you may know, an AMMâs role is to provide liquidity into the crypto space without the need for central mediators. However, there is a problem with AMMs that yield farmers often encounter, relating to how liquidity is allocated.
Who Is Behind DODO?
DODO is a newcomer in the DeFi scene, having launched in August 2020. The platformâs core developers and founders are pseudonymous Radar Bear and Diane Dai, while the rest of the Chinese development team remains anonymous.
In August 2020, DODO received $600,000 in seed funding via Framework Ventures. A month later, in September 2020, DODO procured a much larger funding round worth $5 million, courtesy of Binance Labs, Pantera Capital, and Three Arrows Capital. In the follow-up private sales, DODOâs appeal was also irresistible for major players in the crypto scene, such as Coinbase Ventures, Alameda Research, Galaxy Digital, and CMS Holdings.
DODO Crypto Project In Numbers
The DODO coin is DODOâs native ERC-20 token used for governing the protocol. DODO token holders can use the coin to either create or vote on proposals to improve the network. They can also receive trading fee rebates and rewards whenever they stake the tokens in liquidity pools.
DODOâs SmartTrade trading platform also allows for Crowdpooling and Initial DEX Offerings (IDOs). This is another way for the tokenâs stakeholders to take part in IDO campaigns. On another note, Crowdpooling aims to resolve a critical problem plaguing DEXs â frontrunning â the illicit practice of getting in front of public trades before the assetâs price goes up or down. By facilitating equal distribution of tokens to supply liquidity, Crowdpooling reduces the issue of frontrunning bots.
The total supply of DODO tokens is 1 billion, out of which 725.7 million are in circulation. DODO team devised a scheduled release of coins up until April 2025.
Besides 60% of DODO tokens poured into community incentives, other categories form as follows:
IDO Liquidity â 1%
Seed Sale â 6%
Operations & Marketing â 8%
Private Sale â 10%
Team & Advisors 15%
DODO Coin Price
DODO token saw its ATH (all-time-high) price on February 21, 2021, peaking at $8.25. After the hack in March, the DODO token was undaunted, continuing to rise in price until the historic crypto crash in May.
Conclusion
Whether DODO is worth buying is another matter. After Uniswap underwent its V3 upgrade, it improved both capital efficiency and customization of fees for yield farming, to name just a few improvements. However, while DODOâs PMM approach is promising, it did suffer the very exploit it tried to prevent â frontrunning.
On the other hand, it is difficult to name a DeFi protocol that wasnât exploited or in some manner. In this light, given DODOâs low price that is in range, and the rise in its TVL (total value locked), it may be worthwhile diversifying your DeFi portfolio to take advantage of the potential growth spurt later on.
