DoDo Coin

Before the 2008 financial crisis, entrepreneurs and theorists around the world struggled to find alternatives to central banks and centralized stock markets. A year later, Bitcoin became a decentralized cryptocurrency. However, it wasn’t until the launch of Ethereum in July 2015 that the financial revolution really began. As a general-purpose and programmable blockchain, Ethereum can replicate financial infrastructure through trading, market making, lending, and acting as a bank. Dodo is a new decentralized protocol (DeFi) that brings more innovation to this already highly efficient ecosystem. Dodo Coin is Dodo’s native cryptocurrency and its total supply will reach 1 billion. Among them, 60% of the supply is allocated to community incentive activities in the service chain called "Dodo Carnival". A typical service of these events is called "Grey Parrot". This service is ongoing and it involves providing liquidity and airdrops. The next 15% of tokens will be locked for one year and redeemed

How Does Dodo Coin Work?

Dodo is a Chinese decentralized finance (DeFi) protocol that simultaneously ensures on-chain liquidity. Dodo uses a Proactive Market Maker (PMM) algorithm to ensure the provision of liquidity, making price stabilization more efficient than an Automatic Market Maker (AMM). The PMM pricing mechanism is annotated to simulate investors’ trading activities by collecting highly accurate asset market prices. It then provides sufficient liquidity close to these prices to stabilize liquidity provider (LP) portfolios, reduce slippage, and eliminate impermanent losses by allowing arbitrage trading as a reward. Dodo also offers a service to support cryptocurrency projects that are about to be launched on the market through a free ICO offering offered by IDO (the original Dodo offering. This service requires issuers. Simply send their own tokens.

Dodo is one of the most competitive liquidity providers on the market, with very low transaction fees through the PMM algorithm. The algorithm was first launched in April 2020. The team claims that their PMM algorithm offers higher prices than competitor Uniswap due to a flatter price curve. From there, capital will decrease rapidly as prices move further away from market prices. Dodo can automatically adjust market prices to attract arbitrage. This will help stabilize the supplier's product portfolio. Therefore, this operation ensures better prices as well as reduced slippage, single risk and no abnormal losses. For traders, Dodo offers the same liquidity as centralized exchanges (CEX). In this exchange, smart contracts can use funds to perform operations such as liquidations or auctions. In addition, arbitrageurs can profit from the price difference between Dodo and other exchanges. As for liquidity providers, they have no minimum deposit requirements and no restrictions on the types of assets they use. Another feature of Dodo is that Dodo’s Initial Dodo Offering is also very attractive to new crypto projects. Unlike AMM protocols, Dodo does not require quote tokens. In contrast, for IDO projects, issuers simply deposit their tokens into a liquidity pool. To launch an IDO, a project simply sets the oracle price to a constant. Increase liquidity by sending more price tokens.

Dodo operates similarly to the Uniswap exchange. It is the largest centralized DeFi exchange on Ethereum. However, Dodo is not only a decentralized exchange (DEX) hosted on Ethereum, but also a decentralized exchange (DEX) hosted on Binance Smart Chain. Additionally, it adopts a new approach to making DEXs run efficiently. Uniswap relies on an automated market maker (AMM), while DODO innovates and uses a proactive market maker (PMM) algorithm.

History of Dodo Coin

In August 2020, Dodo was officially launched. Dodo coin was founded by Diane Dai, Radar Bear and an anonymous development team. It initially attracted $600,000 worth of investment led by Framework Ventures. In September 2020, the team announced that it had successfully closed an additional $5 million in private placements, led by Pantera Capital, Binance Labs, and Three Arrows Capital. The private placement also attracted investment from several other high-profile venture capital firms, crypto exchanges and trading firms, including Coinbase Ventures, Galaxy Digital, CMS Holdings and Alameda Research.

Through a partnership with Chainlink in August 2020, Dodo uses price data provided by Chainlink experts. Real-time market prices allow the algorithm to prevent its price from differing significantly from the price of the asset in the real market. One thing you must remember is that as liquidity increases, the risk involved decreases. Therefore, the accumulation of liquidity pools will always reduce the value of the "R" coefficient. Since Chainlink price data is the basis for Dodo’s exchange prices, this could adversely affect Dodo’s trust in this relationship. This means that potential bugs or compromises in Chainkink nodes could translate incorrect information to the Dodo platform. Therefore, market prices based on incorrect data may cause liquidity providers to suffer significant losses in the DODO ecosystem.

Features of Dodo Coin

Vending Machine

With the protocol’s vending machines, anyone with a wallet can create a liquid market. By using PMM active market making technology, users can easily develop linking curves for the tokens they provide. Once you determine the valuation curve that works for you, Dodo Vending Machine will develop a suitable liquid market for the token based on that curve you defined. The protocol maintains the decentralized and unattended nature of the asset while making it open to the public. A unique benefit of this feature is that there are no restrictions on who can use it. This feature is open to any user with a wallet and is free from platform interference or censorship.

Personal Mining Pool

While similar to a vending machine, this feature adds options for advanced investors. Additionally, Private Pool provides additional satisfaction to professional market makers who require more functionality than what vending machines already offer. Personal mining pools help users become personal market makers when choosing configurations. This feature provides users with multiple options to set strategies for their trading modes by using the available parameters. The protocol gives users the freedom to create and manage their own on-chain liquidity pools.

NFT Vault

Dodo NFT Vault is a pricing and liquidity project invented for non-standard cryptocurrencies. Through this feature, users can create new or use their existing NFTs. The NFT will be used for submission in the NFT Vault. Additionally, there are options to keep NFTs unique or split them. This division splits the NFT into bits. Therefore, fungible tokens can be issued to represent them. Using Vault requires NFT to have a corresponding liquidity pool. This will help build the flexibility and efficiency needed for markets to trade NFT bits. The entire operation is provided by the protocol's PMM algorithm.