DODO is a decentralized trade that works within the Ethereum blockchain and makes use of the algorithm of Proactive Market Maker (PMM) to supply customers with tokens that they will use to earn transaction charges.
In keeping with DeFi Pulse knowledge, DODO’s native token DODO now ranks 37th with a complete worth of $ 59.1 million decentralized financing (DeFi) market. It is solely been listed for 2 months and is a comparatively new mission within the crypto house.
A number of the decentralized exchanges recognized to us, equivalent to Uniswap, use algorithms such because the Automated Market Maker (AMM) that enable buyers to deposit funds into the on-chain liquidity pool prematurely, totally decentralized and and not using a custodian. On the similar time, seamless transactions between cryptocurrencies are offered.
Nonetheless, conventional AMM has the weaknesses of inconsistent loss, poor capital effectivity, inadequate liquidity utilization, and danger with a number of tokens.
To resolve the above issues, DODO created this Proactive market maker (PMM) algorithm that goals to generalize the order e book matching system.
Excessive capital utilization
PMM adjusts the value curve utilizing a worth prediction system in order that extra of the liquidity is concentrated available on the market worth of property. This allows extra lively and frequent transactions, thereby enhancing capital effectivity and decreasing risky losses. As proven under, the DODO curve is flatter than the Uniswap curve close to the market worth, indicating increased capital utilization and fewer slippage.
Unilateral transaction
On the similar time, MarketM permits market makers to deposit solely unilateral property of a particular buying and selling pair, in order that merchants do not need to bear any bilateral dangers.
Low transaction prices
The DODO mainnet integrates the Chainlink Oracle, which gives worth updates by aggregating responses from twenty-one totally different worth feeds and assigning liquidity suppliers moderately lower-cost transaction charges.
DODO has acquired approval from lots of the world’s main funding establishments, together with Three Arrows Capital, Binance Labs, Coinbase Capital, and Alameda Analysis, to call just a few. Dodo is presently listed on the Binance and FTX exchanges.
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