DODO is a decentralized exchange that was launched after a successful seed round. The fundraising event took place in August 2020 and was led by Framework Ventures. The exchange was established on the basis of the Ethereum network with the goal to make the DeFi liquidity more accessible. The protocol designed for this purpose has turned the platform into an on-chain liquidity provider.
The platform employs a new algorithm of market-making strategy that differs from the AMM approach used by other popular DeFi protocols such as Uniswap or Curve. The scheme that was named a ‘proactive market maker’ (PMM) by developers presents an improved version of the market-making protocol.
On June 5, 2021, the DODO exchange was launched on Polygon which is a scaling solution developed for the Ethereum blockchain. Polygon Technologies standing behind the Polygon network is an Indian-based company that established the protocol in 2017.
Previously known as Matic, Polygon allows Ethereum-supported blockchains to connect with each other being an efficient solution for users and legal entities that look for decentralized payment solutions. The platform names itself as “Ethereum’s internet of blockchains” as it was created primarily with the goal to support a multi-chain Ethereum ecosystem. What’s more, this DeFi project has attracted the attention of Mark Cuban, a US-based billionaire and a famous investor, who called Polygon a well-structured, easy-to-use platform for Ethereum scaling and infrastructure development.
Presenting a strong decentralized ecosystem that embraces trading, lending, and other services powered with cross-chain infrastructure, Polygon has a strong community taking advantage of the system’s low fees. Thus, DODO on Polygon has been featuring consistent trading volume from the very start without any promotional campaigns.
Polygon and DODO integration details
In a press release published on DODO’s blog on the date of the launch event, Polygon’s co-founder Sandeep Nailwal expressed his excitement concerning the deal. He added that the members of the ecosystem can benefit even more from industry-leading features of the project, especially from the PMM algorithm and contract-fillable liquidity. As the protocol supports all Ethereum-compatible blockchains, it “unleashes creativity, energy, and resources invested in ETH across numerous chains”. In this way, the framework fuels the projects of the ecosystem and improves their scalability, speed, and efficiency.
In the same press release, the founder of the DODO project Diane Dai said that this integration helps DODO to fulfill its mission and make liquidity available for fast, scalable networks. The launch of DODO on Polygon has become a significant milestone moving the company closer to its goal as the platform sticks to its multi-chain deployment strategy. Additionally, it helps to conclude more partnerships and develop the platform further.
Since DODO is a platform with decentralized governance, it’s the community that has to make important decisions. This, in January 2022, the community overwhelmingly supported the migration of 2 million DODO tokens to the Polygon PoS Chain. The company launched a liquidity mining campaign enabling the members of the community to stake their assets on one of the most efficient blockchains. The funds have been allocated for other incentive programs as well. The migration has been arranged to improve the competitive advantage of the DODO protocol on the stablecoin market and increase the customer base. The campaign doesn’t only increase the liquidity but allows the DODO ecosystem to acquire more trading users as well as application scenarios for the token to attract new assets.
The size of trading fees on the Polygon chain is also the aspect that the members of the community can vote for. At the time of writing, the liquidity providers have zero fees, while the protocol fees remain the same for all trading pairs. For instance, when trading the USDC-USDT pair users have to pay a 0.002% fee. 75% of the fees are allocated for the repurchase of DODO and its distribution as vDODO among vDODO holders. The remaining sum of 25% goes to the community vault. To compensate for the reduction of fees, the DODO community has decided to increase the mining reward for the USDC-USDT (Polygon) pair.
The DODO Polygon Liquidity Mining Campaign was conducted between January 23, 2022, and February 22, 2022. The platform announced that the dates were approximate as the start of the campaign was determined by the initial block number.
Why DODO has chosen Polygon
DODO has chosen the Polygon platform as the key partner for integration as this is the fastest scaling solution for the Ethereum blockchain with immense growth. The founders of the platform are Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. With the help of numerous DeFi projects that have already been launched on Polygon, cryptocurrency users try to escape high Ethereum fees.
The core component of Polygon is the SDK framework that features flexibility and enables the building and connecting Secured Chains that include zkRollups, Optimistic Rollups. Plasma, Validium, and so on. At the time of writing, more than 250 dApps already employ the scaling solution granted by Polygon as they provide service to over 800K users. Thus, the Polygon contributes to the mass adoption of the DeFi sector that becomes more affordable thanks to its negligible fees.
Other popular platforms that went live on Polygon also contribute to the popularity of the project. For instance, the deployment of Uniswap on Polygon in December 2021 drove the price of MATIC which is Polygon’s native token to its all-time high positions.
At the time of writing, the ambitious company works on bringing its Web3 plans to life. To achieve its goals, it arranged the seed funding round in February 2022 that was led by Sequoia Capital India. With its help, the company raised 450M USD from 40 venture capital firms that also included such famous names as Republic Capital, Michael Novogratz’s Galaxy Digital, and many others. Polygon plans to work over several Web 3 applications such as Polygon PoS, Polygon Edge, and Polygon Avail, which offer AWS-like (Amazon Web Services) services targeting web2 developers.
The company partners with Tiger Global, Sequoia Capital, and SoftBank. The last one not only provides financial help to the project but also contributes to its institutional legitimacy.