Introduction
In recent years, DeFi has grown tremendously, becoming one of the most promising industries in crypto. Countries also realize the great potential of this field, so they race to develop the best quality products to dominate the market. Most of the most popular DeFi applications today come from the US or Europe. Still, with the advantage of its scientific level, China is also trying to assert itself with extremely quality projects. Prominent among those projects is DODO.
DODO Exchange (DODO) is an on-chain liquidity platform that uses the Proactive Market Maker (PMM) algorithm that provides people with pure and contract-fillable liquidity. It features highly capital-efficient liquidity pools that support single-token provision, reduces impermanent loss, and minimize slippage for traders. To put it more simply, while decentralized exchanges with the advantage of anonymous and peer-to-peer transactions are still hampered by low trading volume and illiquidity, centralized exchanges are still challenges for users with cumbersome regulations and complicated procedures. In that context, DO DO was born as a decentralized exchange but still has high liquidity, ensuring users’ interests.
Market Analysis
On July 21, 2021, CoinMarketCap calculates a total market capitalization of $63.5 Billion for decentralized finance (DeFi). This market tended to grow strongly, up to 143% in the first two months of 2021. However, this is also a highly competitive market as there are already many successful projects in the market. It can be a major drawback and advantageous when the market has been proven demand, and users have also been educated by competitors.
Similar projects:
Uniswap (UNI) has $8.5B market cap, 587 million UNI circulating supply (58% of total supply) on 21/7/2021. It is one of the most popular decentralized trading protocols known for facilitating the automated trading of decentralized finance tokens.
SushiSwap has $806M market cap, 127M SUSHI circulating supply (51% of total supply) on 21/7/2021.
Product Highlight
Exchange
Users can exchange or swap almost of digital assets/ cryptocurrency at an affordable fee.
Liquidity
Although the protocol is decentralized, DODO Exchange traders have sufficient liquidity close to centralized platforms. There is a possibility of price differences between other exchanges. DODO Exchange can be commercialized by arbitrageurs. Liquidation, Auction, and other on-chain operations powered by smart contracts can utilize liquidity from DODO Exchange.
Crowdpooling
DODO Crowdpooling gives projects opportunities to configure Whitelist by themselves, and those who are on the list are eligible to join in the Crowdpooling campaign. But this function is not by default; projects must contact the DOOD team to set up relevant association configuration on the backend.
Mining
On asset types, there are no minimum deposit conditions and limitations. With each purchase, DODO charges a fee and ultimately distributes it to LPs as compensation. LPs may generate trading pairs with their own tokens. In addition, LPs can gain liquidity without considering price pressure by depositing the tokens they already own.
Other tools
Users can create a whole new token or crowd pooling on the DODO platform.
Whitepaper: Papers are publicly available and transparent. Details can be found at Whitepaper | DODO Docs.
Github: Public and regularly updated. Details can be found at DODO Labs · GitHub.
The product status: Relatively complete, currently developing more functions. You can experience it at Your on-chain liquidity provider.
Token Economy
Token Distribution
Token Name: DODO Token.
Ticker: DODO.
Blockchain: Ethereum.
Contract: 0x43dfc4159d86f3a37a5a4b3d4580b888ad7d4ddd.
Token type: Governance.
Token Standard: ERC-20.
Total Supply: 1,000,000,000 DODO.
Circulating Supply:110.551.965 DODO.
Total Value Locked (TVL): $236,719,600
They spend quite a bit of allocation on the community, so their goal may be to build a huge community of supporters. However, this action can adversely affect other parts of the project.
Token Utility
DODO is the Native Token of the DODO Platform and is used as the ecosystem administrator of DODO and rewards for Liquidity mining. It is also used to operate some services on the DODO ecosystem. Such as DODO vending machine, DODO Private Pool, and DODO Crowdpooling.
Network Valuation & Asset Pricing
24 Hour Trading Vol on July 26th, 2021 was only $92M. Binance, CoinTiger, FTX, and BitWell are currently the most active exchanges for this token. DODO’s market cap is $125M with 110,551,965 DODO Circulating Supply in 1,000,000,000 DODO Total Supply.
(Source: mohammad8056, Tradingview.com)
Some investors expect DODO price can break the green line to have an uptrend in the short and mid-term if everything follows the technical chart.
Unique Selling Point (USP)
Low slippage
Due to the design of AMM taking advantage of Oracle Price, prices on DODO will have relatively low slippage. DODO Team designs a new On-chain liquidity solution that is more unique when compared to Uniswap’s AMM. They call this algorithm is Proactive Market Maker (PMM).
When market prices change, AMM passively relies on arbitrage to change prices. While PMM actively shifts the price curve in the same direction to ensure that the neighborhood of the market price remains flat. This ensures a continuous supply of sufficient liquidity.
High Fund Utilization
In PMM, most of the funds are pooled close to the market price, which allows for more frequent, vibrant trading, increasing the usability of funds.
Single Risk Exposure
In PMM, asking liquidity is determined only by the number of base tokens in the pool, and bidding liquidity is determined only by the number of quote tokens. It allows the base pool and quote pool to have different sizes and thus allows liquidity providers to deposit any number of tokens or base tokens, instead of both like Uniswap.
Reduced Impermanent Loss
When individual traders buy the base token, the PMM will slightly increase the price to make it more profitable for the arbitrageurs to sell the base token. With PMM, arbitrage ensures that the number of tokens in the pool is always close to the number of tokens sent by the liquidity providers. This plan effectively minimizes standing losses for liquidity providers, making liquidity provision on DODO a low-risk affair.
Marketing & RoadMap
PR & Marketing
Telegram (Telegram: Contact @dodoex_official) – There are more than 21,000 active members.
Twitter (DODO DEX & NFT (@BreederDodo)) – Has more than 98,300 followers.
Discord (DODO discord) – Has nearly 15,600 active members.
Medium (DODOEx – Medium) – Regularly post updates on the progress of the project and guide to use services.
News: Information about the Centrifuge project has appeared on some major news channels such as Yahoo Finance, Be in Crypto, Bitcoin.com, The Daily Hodl… You can click on the titles to read it all.
DODO has built supportive communities of up to hundreds of thousands of people, which shows the trust in the project from investors and users. In addition, it expresses the execution capacity of the DODO Marketing team.
RoadMap
Q3 2020
- List more trading pairs on DODO Zoo Market.
- Integrate with private storage wallet.
- Start enabling Liquidity mining.
- Issue DODO tokens.
- Binance Smart Chain support for new initial asset listing on DODO.
Q4 2020
- The implementation allows cross swap between trading pairs.
- Launch DODO Wild Market on Ethereum.
2021
- Set Risk Control DAO and Risk parameters.
- Set up Earn DAO, distribute revenue to Maintainers.
The last goal
- Set up Admin DAO: give full control of DODO to the community.
The milestones are set out quite clearly and in detail, but the commitment to the milestones is also a concern. Aside from few milestones that weren’t completed on time or effectively, most of the rest were achieved on schedule. According to the roadmap, the project is stepping by step into the last goals.
Backer
Investor
DODO has built supportive communities of up to hundreds of thousands of people, which shows the trust in the project from investors and users. In addition, it expresses the execution capacity of the Marketing team. Before that, Coinbase Ventures and Galaxy Digital joined the seed round along with investors Framework Ventures and DeFiance Capital. Other institutional investors include trading firms CMS Holdings and Alameda Research, contributing alongside VCs Distributed Global, Primitive Ventures, D1 Ventures, IOSG Ventures, and LongHash Ventures.
Team
DODO team is from the both traditional sector and the crypto. DODO was founded by experienced experts in the blockchain who are big influencers in China’s DeFi Community. The founding team includes:
Co-Founder
He is the architect behind this new market-making algorithm for the protocol. Before that, he was a Physics Ph.D. dropout from Peking University and worked for a China-based DeFi project called DDEX as the key developer of the project.
COO & Co-founder
He is the founder of DOS Network, a 2-layer Oracle project based in China, and Puzzle Ventures – A VC dedicated to helping early-stage blockchain startups grow and reshape crypto’s future. Before entering the crypto industry, Wang worked as a software developer for Pure Storage and Oracle companies.
Cofounder
She was the founder of the first subscription-based WeChat channel that focuses on DeFi in China called DeFi Labs and Marketing expert in DDex.io
Conclusion
DODOEx is a decentralized liquidity provider using a new market-making strategy. The new algorithm is particularly different from the AMM approach common with popular DEXs such as Uniswap and Curve. Finance. DODO brings many benefits to LPs and Traders thanks to its advantages. In the context that the DeFi market continues to grow as strongly as it is today, perhaps DODO will grow even more.
This deep dive is for informational purposes, not investment advice. Readers will be responsible for all their actions.
