How Does Dodo Work?
The sentiment of buyers and sellers is represented by large swathes of data in the market and changes to this data cause the market to react dynamically. The most important bits of data can be extracted through the process of compression, and in the case of crypto trading, the most important feature is liquidity. The typical market making formula stipulates that the price of the base token rises linearly as the number of base tokens that have been traded increases. However, the linear model has its limitations. Firstly, it is over simplified as it doesn’t reflect the uneven distribution of liquidity caused by the concentration near the mid price. Secondly, once the price goes above or below certain thresholds, the linear model returns a liquidity of zero even though there is still liquidity at that price.
What Makes Dodo Unique?
The project’s main innovation is the oracle-aided proactive market maker algorithm developed by the DODO team which mimics human trading and provides more favorable pricing. This model can be tweaked to support various types of pools and trading. The PMM algorithm means that traders get lower price slippage and reduced impermanent loss when compared with AMMs. The pricing formula also provides the DEX with contract-fillable liquidity which is comparable to centralized exchanges.
What’s more, liquidity providers can deposit any amount of base or quote tokens on the DODO DEX, including single-token deposits. This sets it apart from most AMMs which require both tokens to be deposited in a certain ratio.
What Gives Dodo Value?
The DODO platform is a valuable project thanks to its innovative PMM algorithm which provides various advantages over other DEXs. Traders, investors, liquidity providers, and token issuers can all benefit from the platform, which provides market-leading liquidity.
The value of the DODO cryptocurrency derives from its various utilities on the platform. DODO holders can create and vote on proposed changes to the platform, participate in Crowdpooling and IDO campaigns, receive trading fee rebates, stake their tokens, and mint vDODO tokens for extra rewards.
All these benefits make DODO a valuable token to hold for users of the DODO platform. Its finite supply also means the coin is not subject to depreciation through inflation and may therefore be a good store of value in the long term. Future growth of the DODO platform and community could make the project and its cryptocurrency more valuable.
How Many Dodo (DODO) Coins Are There In Circulation
There are currently 725,703,404 tokens in circulation out of a total of 1,000,000,000 DODO tokens. Out of DODO’s total supply, 60% of the tokens are reserved for community incentives, 15% were allocated to the team and advisors, 16% to investors, 1% to initial liquidity provision, and 8% to partnerships, operations, and marketing. The seed round and private sale round raised $5.6 million, with tokens being sold at $0.01 each and $0.05 each respectively.
How To Use Dodo?
Traders can use the DODO platform to find the best prices for trades through best order routing from aggregated liquidity sources. Liquidity providers can earn fees by contributing to liquidity pools with decreased price slippage and reduced impermanent loss thanks to the unique proactive market maker. New projects can also use the Crowdpooling feature to distribute tokens without frontrunning or bot interference.
DODO tokens can simply be held to receive trading fee rebates and allocations to participate in Crowdpooling and IDOs. As a governance token, DODO can also be used to create and vote on proposals. The tokens can be staked to earn more DODO or to mint vDODO.
Conclusion
DODO stands out as a DEX thanks to its unique proactive market maker model which provides better liquidity and price stability than AMM protocols. The product’s SmartTrade trading and aggregation feature is ideal for traders looking for the best prices, while the Crowdpooling feature is beneficial to new crypto projects and investors.
Liquidity providers will find many benefits to using DODO, such as the ability to create and manage their own on-chain market making strategies, decreased price slippage, and the flexibility of single-token deposits.
The DODO coin has a range of utilities and holding it brings various benefits to platform users. The DODO team’s planned incentive programs and initiatives could potentially bring more users to the platform and bring more value to the project and its cryptocurrency.
