DODO decentralized exchange
What is DODO
DODO is a decentralized exchange (DEX) on the Ethereum blockchain that allows users to trade cryptocurrencies in a trustless and non-custodial manner. It was launched in 2020 and is built on the Proactive Market Maker (PMM) algorithm, which is designed to provide liquidity and optimize trading fees.
One of the unique features of DODO is its ability to adjust the price of a token dynamically based on market demand. This is achieved through its PMM algorithm, which adjusts the price of a token based on the amount of liquidity available in the pool. As more users trade a token on DODO, the price will adjust to reflect the new demand and supply levels.
DODO also supports limit orders, stop-loss orders, and other advanced trading features to cater to the needs of more experienced traders. Additionally, it has a user-friendly interface and provides access to a wide range of cryptocurrencies.
DODO has its native token called DODO, which is used to pay for trading fees and governs the platform’s decision-making process. It is also used to incentivize liquidity providers to supply liquidity to the platform.
The history of DODO
DODO was launched in September 2020 by a team of developers led by Diane Dai and Radar Bear. The project raised $600,000 in seed funding from several prominent venture capital firms, including Framework Ventures, DeFiance Capital, and Three Arrows Capital.
The platform was built on the Proactive Market Maker (PMM) algorithm, which was designed to address some of the limitations of other automated market maker (AMM) algorithms used by other decentralized exchanges. The PMM algorithm is intended to provide higher liquidity, reduce slippage, and minimize impermanent loss for liquidity providers.
In November 2020, DODO conducted its initial DODO token sale, which raised $5 million from investors. The DODO token is used to incentivize liquidity providers and govern the platform’s decision-making process.
In January 2021, DODO launched its V2 platform, which introduced several new features, including the ability to create custom liquidity pools and implement trading fees on a per-pool basis. The V2 platform also added support for limit orders, stop-loss orders, and other advanced trading features.
In March 2021, DODO integrated with the Binance Smart Chain, allowing users to trade Binance Smart Chain-based tokens on the platform. Later that same month, DODO also integrated with Polygon, providing users with access to a fast and low-cost Layer 2 scaling solution.
Since its launch, DODO has continued to expand its offerings and partnerships. In April 2021, DODO partnered with the decentralized insurance protocol, InsurAce, to provide insurance coverage for users of the platform. In May 2021, DODO announced a strategic partnership with the decentralized data network, DIA, to improve the accuracy and transparency of price feeds on the platform.
How DODO works
Here’s how DODO works:
- Users can contribute liquidity to DODO’s liquidity pools by putting down two separate tokens. Based on the amount of liquidity that is available in the pool, the PMM algorithm determines the best pricing point for each token. Trading commissions and a portion of DODO, the platform’s native token, are paid to liquidity providers in exchange for their services.
- Users can trade tokens on DODO by selecting a trading pair from the available liquidity pools. The PMM algorithm dynamically adjusts the price of the token based on market demand, ensuring that trades are executed at the optimal price point. Users can also choose to execute limit orders, stop-loss orders, and other advanced trading features to manage their trades.
- The platform’s decision-making is governed by DODO, its native token. Voting on platform development suggestions, such as modifications to the fee schedule, new liquidity pool listings, and user interface enhancements, is available to DODO token holders.
- DODO is a decentralized exchange that does not hold custody of user funds. Instead, users retain control of their funds through their private keys. The smart contracts used by DODO are audited by third-party security firms to ensure the platform’s safety and integrity.
DODO also provides additional features such as customizable liquidity pools, user-friendly interfaces, and support for multiple blockchains, including Ethereum, Binance Smart Chain, and Polygon.
Can DODO be trusted
DODO is a decentralized exchange (DEX) built on the Ethereum blockchain that uses the Proactive Market Maker (PMM) algorithm to provide liquidity and optimize trading fees. As a decentralized platform, DODO does not hold custody of user funds, and users have full control over their assets through their private keys.
DODO’s smart contracts have been audited by third-party security firms to ensure the platform’s safety and integrity. Additionally, the platform has a bug bounty program that rewards users for reporting vulnerabilities in the platform.
DODO has also established partnerships with several reputable blockchain projects, including InsurAce, DIA, and others, to improve the accuracy and transparency of price feeds and provide additional security and insurance coverage for users of the platform.
However, it’s important to note that like any other decentralized platform, DODO carries inherent risks, such as impermanent loss, which is a potential loss that liquidity providers may face if the price of tokens in the liquidity pool changes. Additionally, the volatile nature of the cryptocurrency market means that the value of tokens traded on DODO can fluctuate rapidly, leading to potential losses for traders.
Overall, DODO is a reputable decentralized exchange that has established partnerships with reputable projects and has taken steps to ensure the security and integrity of its platform. However, users should still exercise caution and do their due diligence before using the platform and investing their funds.
Does DODO charge a fee
It’s true that DODO levies fees for deals made through the site. Each liquidity pool’s liquidity providers decide the cost structure for DODO, and it may change based on the trading volume of the pool and other variables.
Users can share in the trading fees by contributing liquidity to the platform’s liquidity pools, and the trading fees on DODO are typically lower than those on controlled exchanges. Additionally, users have the option of paying a premium price to complete their trades more quickly when the network is heavily congested.
It’s vital to remember that DODO also charges gas fees, which are transaction costs incurred when using the Ethereum network. These charges may change based on network demand and may be expensive when there is a lot of activity on the network.
In general, DODO’s trading fees are lower than those of centralized exchanges, and users can profit from these fees by contributing liquidity to the platform’s liquidity pools. The possible impact of gas surcharges on transactions should be considered by users, and they should incorporate it into their trading strategy.