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As the crypto industry is maturing, new solutions are coming to light, emerging on the market in attempts to solve existing problems or improve existing solutions. This can include anything, really, from high gas fees to solving scalability issues, liquidity issues, providing new services, and alike.
Projects that work on improving liquidity in decentralized finance are considered to be particularly important, given how liquidity used to be one of the biggest issues for the DeFi sector. For years, DEXes could not take off and establish themselves because they lacked proper liquidity. Then, Uniswap emerged on Ethereum’s network, introducing the AMM (Automated Market Maker), and the rest of the industry copied its solution.
However, we now have a project called Dodo that challenges the AMM solution and offers its own, claiming that it is even more efficient. We were interested in seeing how it works, so if you wish to know too, here is what Dodo is all about.
What Problems Does Dodo (DODO) Solve?
Dodo is a decentralized trading platform that relies on the new concept of PMM (Proactive Market Maker), rather than AMM. It claims that this allows it to solve certain issues, such as:
Better liquidity than regular AMM
The first thing to note is that Dodo claims that it can offer better liquidity than AMMs, including even Uniswap. According to Dodo, its PMM pricing mechanism mimics human trading, and it uses oracles to gather highly-accurate market prices for assets. Next, it provides a specific amount of liquidity in order to match the potential orders. In other words, it doesn’t create liquidity without the need for it, which makes it more precise and less wasteful.
Greater price stability
Furthermore, Dodo also claims that it offers greater price stability than other existing solutions. When it provides liquidity for its users, it aims to provide liquidity close to the market prices, in order to stabilize the liquidity providers’ portfolios. And lower price slippage. At the same time, its efforts can help negate impermanent loss by allowing arbitrage trading, as well.
Benefits of Dodo (DODO)
That is not all, however. Dodo claims that it is able to offer some rather interesting benefits for those who stick around with its project. For example:
Highly accurate market prices
Thanks to its unique technology, the project can offer extremely accurate market prices. In fact, it claims that they are the most accurate out there, and definitely better than what projects like Uniswap and others can offer. The project says that its PMM collects funds near market prices in order to establish liquidity, and the further the price moves from the market price, the lower the liquidity is, so DODO automatically adjusts the prices in order to keep liquidity stable.
Free ICO listing
Next, DODO says that it also wishes to take care of new cryptocurrency projects. It believes that they should all have equal opportunities when it comes to exposure, which is why it offers free ICO listing via its Initial DODO Offering (IDO). Basically, all that issuers are required to do is deposit their own tokens, and they will be eligible to be listed completely for free, and get as much exposure as the platform can offer.
Very low transaction fees
While DODO positions itself as one of the most competitive liquidity providers out there, it also worked on making its other aspects the best they can be. For example, the project’s transaction fees are very low, and the same can be said for price slippage. It is all thanks to the PMM algorithm, which is very important to note, given that DODO is based on Ethereum’s network. While Ethereum is quite well-known for extremely high gas fees, DODO can offer a much better deal thanks to its protocol.
No minimum deposit for Liquidity Providers
Finally, it is worth noting that liquidity providers have no minimum deposit that they need to match in order to become liquidity providers and start earning passive income in exchange for their contribution. This means that anyone can join, deposit what they can afford to, and start earning over time. It is a more inclusive approach and it allows everyone interested to join, which is a pleasant change.
How Does Dodo (DODO) Work?
DODO is a decentralized trading platform that relies on a new algorithm called the Proactive Market Maker. The product of DODO’s development, PMM is said to be significantly better than AMM-based solutions such as Uniswap and others. It is capable of offering highly accurate market prices, alongside extremely low fees, boosting the efficiency of on-chain liquidity for Web3 assets.
In other words, the project aims to make it easy for everyone to issue and trade these asses, as well as to help the assets themselves by offering free ICO listings for those who use its IDO service.
DODO uses PMM pricing mechanism, which mimics human trading. At the same time, it uses oracles to gather highly accurate market prices for its assets. Next, it provides liquidity close to the prices so that the liquidity providers’ portfolios would stabilize, as the liquidity gradually drops the further the price strays from the actual market price. This is DODO’s way of ensuring that the price will always be accurate, otherwise, its entire project would suffer.
How to Buy Dodo (DODO)
Currently, Dodo (DODO) is available for purchase on the following exchanges.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying Dodo (DODO). Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
WazirX – This exchange is part of the Binance Group, which ensures a high standard of quality. It is the best exchange for residents of India.
Dodo (DODO) — Decentralized trading protocol for Web3
Projects like DODO may be overlooked as they are working on solving a problem, rather than pursuing trends, and with big names such as Uniswap as its competitors, hardly anyone pays attention to the underdog that claims that it offers better service. However, in DODO’s case, the claims are true, which is quite interesting and refreshing to see.
We believe that DOOD might have a major role to play in setting up the future of crypto. Once all of these systems are connected and Web3 goes live, DODO could end up being THE project for accurate prices and high liquidity.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.
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