DODO represents a decentralized exchange that was launched on Ethereum in April 2021. The system relies on the DODO protocol, a new DeFi solution that brings more innovation into the industry of decentralized finance. DODO performs the same function as other Ethereum-based decentralized exchanges but employs a new approach ensuring a more efficient work of a DEX.
DODO presents a solution that is capable of eliminating a range of problems in the sector of decentralized finances. Its team has come up with a more scalable, fast, and efficient system, which has obtained excellent results thanks to the proactive market maker mechanism (PMM), a unique system that is similar to the work of AMM but has been upgraded to avoid some of the most common DeFi problems.
The DeFi exchange product suite embraces a range of services as such SmartTrade trading and aggregation, Crowdpooling/IDO, liquidity pools, mining including in its turn liquidity mining, trading mining, and combiner harvest mining. The DODO products are integrated with different wallet apps enabling users to connect to the platform easily. It is possible to trade different tokens on the same network using the SmartTrade feature that determines the best rates for the members of the ecosystem. While executing trades, users at the same time can earn DODO if they participate in trade mining.
The DODO exchange is a next-generation platform that operates on the Ethereum blockchain. It positions itself as more than just an exchange as it presents a combination of an aggregator and liquidity pools in the same way that another blockchain platform 1inch has done. Borrowing the scheme, DODO aims to become the first facility using such a combo in the Asian region.
The DODO exchange has a user-friendly interface and sufficient liquidity for trading. The team of the platform pays much attention to its usability calling it a secret ingredient of DODO products’ success. Since bewildering complexity is one of the key problems that DeFi platforms face, the in-house DODO developers create products with this aspect in mind caring about the friendly design and convenience of their users.
Those who want to earn crypto while mining should simply trade on the platform. However, it is necessary to submit an application to activate the Trading Mining Feature. Miners get 1% of the DODO tokens, while those who participate in the referral program can earn up to 10% of the share.
The DODO team has come up with a new offer that is known as DODO vending machine that makes token distribution easier and also contributes to the market liquidity. Moreover, it enables other projects to develop their own trading platforms on the basis of DODO.
DODO’s DeFi aggregation service known as SmartTrade routes different liquidity sources comparing the prices and offering the most optimal swapping rates across tokens. The scheme was developed to prevent the hurdles arising when liquidity pools are created to issue new assets. What’s more, with this product traders are able to customize and configure liquidity pools’ parameters themselves.
Another product designed by the DODO team is the Crowdpooling mechanism that aims to deliver permissionless liquidity targeting primarily professional online market makers. With the help of this fundraising mechanism, creators and investors can securely connect with each other. Its design protects investors in different ways, for instance, by discouraging frontrunning when traders use timing to exploit token prices, or preventing rug pulls through the introduction of a liquidity protection period.
Finally, the platform has established highly efficient liquidity pools, which support single-asset provision and reduce slippage. The set of powerful tools includes custom tokens that can be created by members of the community with a single click of a mouse without coding and fractionalized NFTs for boosting liquidity. DODO NFT Vault fragmentation implies setting the percentage of tokens for the secondary market and putting aside the assets for the primary market and other incentives.
As stated above, the PMM scheme was devised to address the key issues of the decentralized markets, which are lack of liquidity and lack of composability. These drawbacks don’t allow users to enjoy all benefits of the DeFi infrastructure and prevent the further growth of the decentralized industry.
A unique and advanced PMM algorithm offers the solution to these issues and contributes to the growth of liquidity in the DeFi sphere. The proactive market maker mechanism employs a special formula and the data of oracles in its work thus providing liquidity for the project. The DODO team has chosen Chainlink as its oracle provider that delivers price reference data feed in live mode. Using the on-chain liquidity protocol developed by the in-house team, DODO offers a smooth trading experience for its users.
In December 2020, DODO V2 smart contracts were audited by PeckShield Inc. Also, Certik performed the auditing for the platform in February 2021 and came up with the vDODO report. A month later a blockchain security company Besoin reviewed the DODO V2 contracts, CrowdPooling contracts, and DODOVendingMachine. In April 2021, DODO V2 smart contracts were checked by one more auditing company SlowMist.
However, despite all these security measures, the platform has still suffered from several hacking attacks. The largest attack took place in March 2021 having resulted in a loss of 4 million USD worth of assets in crypto.
The founders of the facility are all influential personas in the Asian cryptocurrency sector. For instance, Migda Lei, the author of the DODO protocol, has a Physics Ph.D. at Peking University. She is the key person standing behind the creation of the unique market-making algorithm that was later implemented on the platform.
The other co-founder is Diane Dai, who has also founded DeFi Labs, a WeChat channel that is focused on the DeFi sphere in China. The third co-founder Qi Wang is a founder of DOS Network, a Chinese layer 2 oracle project. He has accumulated large experience of work in the decentralized industry, developing products for such famous companies as Pure Storage and Oracle.