What is DODO (DODO)?

Deep Dive

1. Purpose & Value Proposition

DODO aims to solve inefficiencies in decentralized trading, specifically high slippage and impermanent loss for liquidity providers common in traditional AMMs. Its solution is the Proactive Market Maker (PMM), an algorithm that actively references external price oracles (like Chainlink) to concentrate liquidity around the current market price. This design intends to offer traders better prices with lower slippage and provide LPs with more stable, capital-efficient pools.

2. Technology & Architecture

The PMM is DODO's key technical differentiator. Unlike standard AMMs that rely on a constant product formula (x*y=k) and spread liquidity evenly across a price curve, the PMM mimics human market-making by actively adjusting the pool's price curve. It gathers a "reference price” from an oracle and then dynamically allocates most liquidity within a narrow band around that price. This allows for deeper liquidity where most trading occurs, potentially improving the experience for both traders and LPs.

3. Ecosystem Fundamentals

Beyond its core DEX, DODO has expanded into a broader on-chain liquidity platform. It supports Crowdpooling (its IDO mechanism) for new project launches. The protocol also ventured into NFTs with a fractionalization platform, allowing NFTs to be split into tradable fungible tokens. Furthermore, DODO emphasizes multi-chain accessibility, being deployed on networks like Ethereum, BNB Chain, Polygon, and Aurora (DODO) to serve a wider user base.

Conclusion

Fundamentally, DODO is a liquidity protocol built around an oracle-driven market maker designed to optimize capital efficiency for providers and execution for traders. How will its evolving V3 upgrade and developer tools further shape its role in the multi-chain DeFi landscape?