What is DODO (DODO)?

Deep Dive

1. Purpose & Value Proposition

DODO addresses inefficiencies in decentralized trading by replacing traditional automated market makers (AMMs) with its PMM algorithm. Unlike AMMs that rely purely on supply-demand curves, PMM integrates real-time price feeds from oracles like Chainlink to concentrate liquidity near market prices. This reduces slippage for traders and impermanent loss for liquidity providers (CoinMarketCap).

The protocol also simplifies token launches via IDOs, allowing projects to bootstrap liquidity by depositing only their own tokens—eliminating upfront capital requirements.

2. Technology & Architecture

The PMM algorithm dynamically adjusts liquidity based on market conditions. For example, during stable markets, it tightens spreads to attract traders, while expanding them during volatility to protect liquidity providers. This hybrid approach combines algorithmic precision with oracle-guided price accuracy.

DODO operates as an ERC-20 token on Ethereum but has expanded to Binance Smart Chain and other networks, supporting cross-chain swaps and integrations with wallets like MetaMask.

3. Tokenomics & Governance

DODO’s 1 billion token supply allocates 60% to community incentives, 16% to investors, and 15% to the core team (vested over three years). The token grants governance rights across three DAOs:
- Admin DAO: Controls protocol upgrades.
- Risk Control DAO: Manages parameters like fees and oracle usage.
- Earn DAO: Distributes trading fee rewards.

Staking DODO tokens mints vDODO, a non-transferable asset that amplifies governance power and earns dividends from platform fees (DODO Blog).

Conclusion

DODO reimagines decentralized liquidity by blending oracle-driven market making with accessible token launch infrastructure. Its PMM algorithm and IDO model position it as a toolkit for both traders and builders. How will DODO’s adaptable liquidity mechanisms evolve as DeFi faces increasingly volatile markets?